F1 vs FIA: Why is there tension between the two organisations?
25th January 2023Formula One and its governing body, the FIA, have seemingly butt heads in the last couple of days after news broke out speculating Saudi Arabia’s PIF were looking to buy the sports commercial rights.
Bloomberg recently reported Saudi Arabia’s Public Investment Fund (PIF) had made a bid to purchase F1’s commercial rights. However, the publication has released an updated report – on January 20, 2023 – which stated the bid had failed as the sport’s owners, Liberty Media, are refusing to sell.
Despite this, the FIA – primarily it’s president, Mohammed Ben Sulayem – has been under fire for interfering with the sports commercial business.
On Monday, the president released a post on twitter regarding the news. He said:
“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.
“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.
“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.
The President’s tweet follows on from his support of Andretti potentially joining the sport, as an 11th team on the grid, another factor which the 10 current teams are not fond of as it would dilute the sports money pot.
Ben Sulayem’s comments, including the newest addition regarding the failed Saudi bid, have seemingly left the two organisations (FIA and Liberty Media) butting heads with Formula One being right in the middle of it.
The premise of their disagreement is due to the sport and Liberty Media believing the FIA have crossed a line by interfering with their business.
F1 holds the commercial rights of the sport as part of a 100-year lease with the FIA, which was agreed and signed by the governing body in 2001. As part of the agreement, the sport focuses on the commercial side whereas the FIA regulates championship.
As a result of the FIA’s active presence in the sport’s business, following comments on Andretti and now the commercial rights bid, Sky Sports has reported F1’s Chief Legal Officer Sacha Woodward Hill and Renee Wilm (Liberty Media’s counterpart) have sent a joint letter to the FIA, accusing the governing body of overstepping the mark.
At the time of writing, neither F1 nor the FIA have made a public comment on the supposed bid, the letter or the FIA President’s post.
That’s all for the article; F1 vs FIA: Why is there tension between the two organisations?
What do you think of the tension between both the FIA and Formula 1/Liberty Media? Let us know in the comments!
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Hi, I’m Kamron. I created ApexMotorsports.co.uk in the dying embers of the 2021 Formula 1 world championship. It allowed me freedom to write whatever I wanted to write about which was all things motorsports, my passion.
I have put a lot of effort in over the years to keep this website in its best shape and I’ve loved seeing the brand grow consistently, month-on-month, year-on-year. My ambition is to keep watching this brand grow into a primary outlet of news for all things motorsports whilst fueling my desire to pursue a career in sports journalism, specialising in motorsports.
Kamron Kent
Hi, I'm Kamron. I created ApexMotorsports.co.uk in the dying embers of the 2021 Formula 1 world championship. It allowed me freedom to write whatever I wanted to write about which was all things motorsports, my passion. I have put a lot of effort in over the years to keep this website in its best shape and I've loved seeing the brand grow consistently, month-on-month, year-on-year. My ambition is to keep watching this brand grow into a primary outlet of news for all things motorsports whilst fueling my desire to pursue a career in sports journalism, specialising in motorsports.
