Liberty Media has reportedly turned down a 20 billion dollar offer to sell Formula 1 to Saudi Arabia’s sovereign wealth fund (PIF). The American corporation had acquired F1 at the end of 2016.
Bloomberg’s report urged FIA president Mohammed Ben Sulayem to issue a warning over the dangers of ‘alleged inflated price tags’.
“As the custodians of motorsport, the FIA, as a non-profit organisation, is cautious about alleged inflated price tags of 20bn dollars being put on F1,” he wrote on Twitter.
Money is not everything
Sulayem considers it a risk to inflate the value of the sport as he believes that the priority would be for the F1 to be in the right hands.
“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 noted.
“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.”
An estimated value of more than 15 billion dollars
F1 announced after Liberty Media’s acquisition of the sport that the transaction price represents an enterprise value for F1 of 8.0 billion dollars and an equity value of 4.4 billion dollars.
However, its value has doubled to more than 15 billion dollars, which means that Saudi’s offer was be 25 percent higher than its market value.
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