Formula 1 sends explosive letter to FIA after asking Mohammed bin Sulayem ‘$20 billion price inflated’

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The warning follows comments made by Mohammed bin Sulayem on Twitter following reports that a potential buyer offered $20 billion for F1; Letter, seen by Sky News, threatens to escalate tensions between Formula 1 and the FIA ​​By Mark Kleinman, Sky News City Editor

Last update: 1/24/23 3:58 PM

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Sky Sports’ Craig Slater is getting the latest news from Formula 1 after they sent a letter to the FIA ​​following Mohammed bin Sulayem’s “inflated $20 billion price tag”.

Sky Sports’ Craig Slater is getting the latest news from Formula 1 after they sent a letter to the FIA ​​following Mohammed bin Sulayem’s “inflated $20 billion price tag”.

Formula 1 bosses have sent a troubling letter to the FIA ​​after claiming it was not worth $20billion (£16.3billion).

F1 general counsel Sascha Woodward Hill and Renee Willem, chief legal and administrative officer for F1’s controlling shareholder Liberty Media Corporation, have accused the FIA ​​- motorsport’s governing body – of straying from its remit, in a letter seen by Sky News.

In the letter, the legal heads argue FIA ​​president Mohamed bin Sulayem “meddled in our affairs [commercial] rights in an unacceptable way” when he referred to an “alleged $20 billion inflated price tag” being placed on the sport.

He added that a potential F1 buyer should “come up with a clear and sustainable plan – not just a lot of money”.

Bin Sulayem’s comments, posted on Twitter on Monday, came in response to a Bloomberg News report last week that the Saudi sovereign wealth fund had explored a $20 billion takeover bid for the sport in 2022.

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Sky Sports News reported on Monday that bosses at F1 were unhappy with the social media post and tensions between the two bodies escalated on Tuesday when the legal chiefs sent the letter to the FIA.

Neither F1 nor Saudi Arabia’s Public Investment Fund have commented on the report.

The letter, a copy of which was sent to F1 teams including Ferrari and Mercedes on Tuesday, warned the FIA ​​that “Formula 1 has the exclusive right to exploit the commercial rights to the FIA ​​Formula One World Championship” under a 100-year deal.

Furthermore, the FIA ​​has made unequivocal undertakings that it will not do anything to prejudice the ownership, management and/or exploitation of these rights.

“We consider those comments, made by the official social media account of the FIA ​​President, to be inconsistent with those rights in an unacceptable way.”

The response to Mr. Bin Sulayem’s comments comes at a time of heightened tensions between Formula 1 and its governing body.

The letter from Woodward Hill and Ms Willem also said that the suggestion, implied in the FIA ​​president’s remarks, “that any potential buyer of the Formula 1 business is required to consult with the FIA ​​is wrong”.

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Craig Slater explains why some within Formula 1 believe FIA ​​president Mohamed Ben Sulayem has crossed the line by commenting on reports of a possible series bid.

Craig Slater explains why some within Formula 1 believe FIA ​​president Mohamed Ben Sulayem has crossed the line by commenting on reports of a possible series bid.

She added that Mr. Bin Sulayem “exceeded[ped] limits the FIA’s jurisdiction”, which states that “any individual or organization attaching importance to the value of a listed entity or its subsidiaries, in particular claiming or implying possession of inside knowledge while doing so, risks causing significant harm to shareholders and investors in it not to mention exposure potentially serious regulatory consequences.

“To the extent that these comments harm the value of Liberty Media Corporation, the FIA ​​may be liable as a result.”

Sky News contacted an F1 spokesperson who declined to comment. The FIA ​​could not be reached for comment.

F1 teams question FIA chief position after recent controversies

Sky Sports News analysis by Craig Slater…

Ahead of the 2023 season, there is a major struggle at the top of the sport.

Formula 1 is owned by an American company, Liberty Media, which is a listed company. If someone of the stature of the FIA ​​boss makes a remark about the potential fit value, it could be to the company’s commercial detriment.

This is just one of a number of issues over the course of Mohammed bin Sulayem’s tenure that have troubled not just Formula 1, but some teams as well.

I’ve been in contact with a number of F1 teams, and they had different views on what happened this week.

One of the senior figures told me that there is a discussion among a number of teams about how long Mohammed bin Sulayem can continue in this position.

There are questions being raised about his tenure because of what has become an increasingly divided (relationship) between the governing body and the commercial rights holder, and thus the difference.

It’s leadership style like nothing else. It all comes down to concern, felt by some people in the sport, about the arrangement whereby the FIA ​​(then chaired by Max Mosley) more than a 100-year lease sold commercial rights to an organization that was then run by Bernie Ecclestone to exploit the rights. commercial.

It was felt at the time that it had been rented out too cheaply, and some people see Mohammed bin Sulayem publicly indicating his discomfort with the arrangement.

This is a very profound matter, and it is a historical issue that the board of directors and the commercial rights holder will have to grapple with.

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