26/01/2023
NEWS STORY
As expected, F1's owners have not taken kindly to the FIA president's claim that a reported $20bn Saudi bid for the sport was "inflated".
"As the custodians of motorsport, the FIA, as a non-profit organisation, is cautious about alleged inflated price tags of $20bn being put on F1," tweeted FIA president, Mohammed Ben Sulayem on Monday following reports that Saudi Arabia's sovereign wealth fund had made a $20bn bid for the sport which was subsequently rejected.
"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," he added.
"It is our duty to consider what the future impact will be for promoters in terms of increased hosting fees and other commercial costs, and any adverse impact that it could have on fans."
Today, in reaction to Ben Sulayem's comment, F1's general counsel, Sacha Woodward Hill, and Renee Wilm, the chief legal and administrative officer of Liberty Media have written to the sport's governing body accusing it of overstepping the bounds of its remit and contractual rights.
According to the BBC, which has seen the letter, Woodward Hill, and Wilm state that under the 100-year contract agreed in 2001 between Bernie Ecclestone and Max Mosley, F1 has "the exclusive right to exploit the commercial rights in the FIA F1 World Championship".
"The FIA has given unequivocal undertakings that it will not do anything to prejudice the ownership, management and/or exploitation of those rights," it adds.
Referring to Monday's tweets from Ben Sulayem's, it claims that the comment, "made from the FIA president's official social media account, interfere with our rights in an unacceptable manner".
"The circumstances in which the FIA would have any role in a change of control of the F1 group are very limited," the letter adds. "Any suggestion or implication to the contrary, or that any potential purchaser of the F1 business is required to consult with the FIA, is wrong.
"Commenting on the value of a listed entity, 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.
"To the degree that these comments damage the value of Liberty Media Corporation, the FIA may be liable as a result."
In conclusion, Woodward Hill, and Wilm say that both F1 and Liberty "hope and trust that it will not be necessary to address this issue again".
The various disagreements between F1 and the FIA over the course of the 2022 season aside, even before the cars hit the track this year it has been clear that trouble was building, first with Ben Sulayem's comments over Andretti and now this.
It is going to be fascinating to see how this develops, with the ball now very much in the FIA president's court.