F1 and its owner, Liberty Media Corporation, has written an explosive letter addressed to the FIA President, Mohammed Ben Sulayem, over his recent comments regarding the value of F1.
The letter follows a series of tweets from Sulayem, relaying his thoughts over the potential takeover of the rights of Formula 1. There was a report that there had been a failed Saudi Arabian bid to buy F1’s commercial rights for $20 billion. Sulayem, in his tweet, had mentioned something about F1’s valuation, referring to the bud as an “inflated price tag.” What that means, in essence is that Sulayem does not believe that F1 is anywhere worth $20 billion, something F1 did not take lightly.
Sulayem also said that F1 should be careful of a takeover that would lead to high ticket prices and other things that could affect how fans enjoy the sport, as the buyers would be looking to make back the money spent on acquiring the franchise.
In a letter addressed to Sulayem and the FIA on Tuesday, Liberty Media Corporation had accused the FIA of involving itself in matters outside its scope of affairs. In the letter, they reminded the FIA that “Formula 1 has the exclusive right to exploit the commercial rights in the FIA Formula One World Championship” under a 100-year deal.”
The letter further reads: “Further, the FIA has given unequivocal undertakings that it will not do anything to prejudice the ownership, management, and/or exploitation of those rights.
“We consider that those comments, made from the FIA president’s official social media account, interfere with those rights in an unacceptable manner.”
They also warned that the FIA would be held liable if the statements from Sulayem “damage the value of Liberty Media Corporation.”
Neither the FIA or anybody form Saudi Arabia has commented on the issue for now.