F1 Turns Downs Heavy Saudi Arabian Multi-Billion Dollar Check All for the American Dream

There is no doubt in the fact Formula 1 has become one of the in-demand and popular sports franchises in the globe. After Liberty Media’s $4.4 billion takeover in 2017, the value of F1 has skyrocketed. We already have multiple teams trying to become a part of the premier class for over a year now. Everybody wants a piece of the money-making pie. However, there is an interested party who wants the entire pie for themselves.

It is the Saudi Arabian Public Investment Fund (PIF). The PIF is among the largest sovereign wealth funds in the world, with an estimated worth of $620 billion. Created in 1971, the fund is used on behalf of the Saudi Arabian government for development. Of late, the sovereign fund is being used to diversify the sporting portfolio of the nation. Now, according to Bloomberg, as revealed by Vincenzo Landino, the Saudi government wants to invest a large sum in the traveling circus.

According to the aforementioned source, the PIF offered $20 billion to Liberty Media to acquire the Formula 1 franchise. To sweeten the deal, the PIF also offered to assume any debt Formula 1 currently has. However, looking to the future, the American owners rejected the bid. A bid that could’ve recouped the American owners’ initial investment with a 2.5x return.

Although, this could just be the starting bid and one can expect the Saudi Arabian PIF to make persistent efforts.

Read More: Disputed 2023 Calendar Sparks Drama Between $15 Million Worth Liberty Media & FIA

This also showcases the media company’s commitment to the sport and the belief in the sport’s potential. This enticing $20 billion offer could be pennies in the coming years with the way the sport is growing. However, there is one aspect that can affect the sport’s growth.

The FIA hindering the popularity of F1 and hurting Liberty Media with consistent mishaps

The FIA, governing body of Formula 1, has already made a handful of blunders in 2022 alone. All these added up affected the viewer’s experience and this mismanagement can hurt the sport in the long run.

Let us give you three big examples in brief:

1. The delayed 2021 budget cap resolution became a source of drama in the middle of the 2022 season.

2. The ever-changing rules which were not followed in the 2021 Abu Dhabi GP that denied Lewis Hamilton his championship but practiced in the 2022 Italian GP. Another source of debate and unnecessary drama among the fans.

3. The extremely confusing points system that took away the glorious championship-winning moment from Max Verstappen at the Japanese GP.

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These examples, coupled with the 2023 calendar announcement, are making things strenuous between the owners and the governing body. Let’s hope the mismanagement does not affect the sport’s overall popularity in the long run.