F1-FIA Relationship Takes a Hit As $20 Billion War Ensues Over “Unacceptable” Comments

The relationship between F1 and the FIA isn’t at its best, as the legal heads of the most premium form of motorsport fired a warning shot at the president of the governing body. The FIA has oftentimes come under scrutiny after their repeated clampdown on Mercedes AMG star driver Lewis Hamilton. However, this time it’s much more serious as F1 has decided to take matters into their own hands. This has come after Muhammed ben Sulayem, the president of the FIA commented that F1’s $20 Billion valuation is “inflated“. The owners of F1, Liberty Media Corporation, didn’t take the comment likely as they slammed the FIA for venturing where they probably don’t belong.

Sky News has seen a letter for the FIA from Sacha Woodward Hill, F1’s legal supremo, and Renee Wilm, chief legal and administrative officer of Liberty Media Corporation, and it didn’t have anything good and soft for the FIA. After stating that F1 has the exclusive right to exploit the commercial rights of the championship and FIA has its limits, the letter contained strong words targeted at the concerned authority.

Calling ben Sulayem’s conduct “unacceptable” the letter stated, “We consider that those comments, made from the FIA president’s official social media account, interfere with those rights in an unacceptable manner.’‘

The letter further stated, “Any individual or organization commenting on the value of a listed entity or its subsidiaries, especially claiming or implying possession of inside knowledge while doing so, risks causing substantial damage to the shareholders and investors of that entity, not to mention potential exposure to serious regulatory consequences”.

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It also said that the comments made by the president of the FIA can potentially “damage the value of Liberty Media Corporation” and they are ready to hold the FIA responsible for it. As things stand, the FIA and ben Sulayem might be in legal trouble after making comments on something that was beyond their limits.

Why did the FIA president call F1’s valuation “inflated”?

The FIA president Muhammed ben Sulayem is unsure of the staggering valuation set out by the Saudi fund on Liberty Media Corporation-owned F1 as he is skeptical about it. He not only doubted the $20 billion offer but also called it “inflated”.

Taking to his personal Twitter handle, ben Sulayem wrote, “As the custodians of motorsport, the FIA, as a non-profit organization, is cautious about alleged inflated price tags of $20bn being put on F1.”

“Any potential buyer is advised to apply common sense, consider the greater good of the sport and come with a clear, sustainable plan – not just a lot of money,” the FIA honcho further wrote.

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According to a report published by Bloomberg, the Saudi Public Investment Fund was ready to buy Formula 1 from Liberty Media for $20 billion, including debt. But the current owners of F1 rejected saying it was not for sale.