Formula 1 owners are accusing the FIA ​​chief of making “unacceptable” remarks about the value of the championship

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FIA president Mohamed Ben Sulayem said on social media on Monday that an “exorbitant price tag” has been placed on F1

Formula 1 owners have accused the head of motorsport’s governing body of making “unacceptable” remarks about the value of the championship.

FIA president Mohamed bin Sulayem on Monday described $20 billion (£16.2 billion) as “an exorbitant price being put on Formula 1”.

A letter sent from F1 and owner Liberty Media to the FIA ​​says the remarks “exceed the limits of the FIA’s powers and contractual rights”.

It added that the FIA ​​”may be liable” for any damage to the Liberty’s value.

The letter, sent on Tuesday and seen by BBC Sport, was co-authored by F1’s chief legal officer Sasha Woodward Hill and Renee Willem, who fulfills a similar role for F1 owner Liberty Media.

F1 holds the commercial rights to this class under a 100-year lease agreement signed by the FIA ​​at the beginning of this century. American F1 group Liberty Media bought in 2017.

The message constitutes an explosive response to Bin Sulayem’s comments on Twitter on Monday, which came in response to a report by Bloomberg that Saudi Arabia’s Public Investment Fund (PIF) had tried and failed to buy F1 to the number one.

Bin Sulayem called the valuation an “allegedly high price” and said: “Any potential buyer is advised to apply common sense, consider the greater good of the sport and come forward with a clear and sustainable plan – not just a lot of money.”

He added, “It is our duty to consider the future impact on promoters in terms of increased hosting fees and other commercial costs. [in the event of any such sale]. “

The letter from Woodward Hill and Willem was directed to the CEO of the FIA ​​and the World Motorsport Council, the sport’s legislative body.

It marks a dramatic escalation in the strained relationship between Formula 1 and the FIA ​​that was evident during Bin Sulayem’s 13-month presidency.

The letter states that under a 100-year contract, F1 has the “exclusive right to exploit the commercial rights to the FIA ​​F1 World Championship”.

“The FIA ​​has made unequivocal commitments that it will not do anything to prejudice the ownership, management and/or exploitation of these rights,” he adds.

It says that Bin Sulayem’s statements, “made by the official account of the FIA ​​President on social media, unacceptably contradict our rights.”

Woodward Hill and Willem write: “The circumstances in which the FIA ​​would have any role in changing control of the Formula 1 group are very limited.

“Any suggestion or implication to the contrary, or that any potential F1 business buyer is required to consult with the FIA, is false.”

The letter adds that any “commentary on the value of a listed entity, especially a claim or suggestion of possession of inside knowledge while doing so, could cause significant harm to the shareholders and investors of that entity, not to mention the potential exposure to serious regulatory consequences.”

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

It concludes that F1 and Liberty “hope and trust that it will not be necessary to address this issue again”.

The FIA ​​declined to comment.

What was bin Sulayem doing?

Senior F1 sources have questioned the validity of the claim that Saudi Arabia’s Public Investment Fund tried to buy F1.

Saudi Arabia participates in Formula 1 – national fuel company Aramco is a corporate sponsor, and the country hosts a race that has one of the largest hosting fees – but BBC Sport has been told that its Public Investment Fund has not attempted at this stage to buy the sport.

Bin Sulayem’s intervention raises a series of questions about why he feels the need to get involved in a commercial matter that is not within his purview.

The FIA ​​is required to stay away from commercial matters within Formula 1 under an agreement struck with the European Commission more than 20 years ago.

Bin Sulayem’s statement comes against the background of the continuing tension between the International Automobile Federation on the one hand and Formula 1 and the teams on the other hand over the way the sport is managed.

Liberty bought F1 in 2017 in a deal that valued the sport at $8.5 billion, since its global appeal has increased exponentially.

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