F1 owners accuse FIA president of commercial interference

Liberty Media and Formula One sent letter to the governing body accusing it of exceeding its remit over Mohammed Ben Sulayem's comments regarding the sport's valuation

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  FIA president Mohammed Ben Sulayem, Liberty Media president and chief executive officer Greg Maffei, and Ferrari chairman John Elkann talk on the grid ahead of the F1 Grand Prix of Miami at the Miami International Autodrome on May 08, 2022 in Miami, Florida. AFP

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  FIA president Mohammed Ben Sulayem on the grid before the Azerbaijan Grand Prix on June 12, 2022. Reuters

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  FIA president Mohammed Ben Sulayem, right, speaks with Red Bull Racing team principal Christian Horner prior to first practice at the Italian Grand Prix, Monza on September 9, 2022. EPA

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  FIA president Mohammed Ben Sulayem arrives before the third practice session ahead of the Abu Dhabi Formula One Grand Prix at the Yas Marina Circuit on November 19, 2022. AFP

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  Red Bull driver Max Verstappen, right, speaks with Mohammed Ben Sulayem, ahead of the F1 Grand Prix of Abu Dhabi at Yas Marina Circuit on November 17, 2022. AP Photo

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  Mohammed Ben Sulayem, president of the FIA presents a medal to Max Verstappen, winner of the 2022 Formula 1 Etihad Airways Abu Dhabi Grand Prix, on November 20, 2022. AP Photo

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  Mercedes' Lewis Hamilton with FIA president Mohammed Ben Sulayem on the grid before the Azerbaijan GP on June 12, 2022. Reuters

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  McLaren team principal Andreas Seidl talks with Mohammed Ben Sulayem in the paddock prior to final practice ahead of the F1 Grand Prix of Azerbaijan at Baku City Circuit on June 11, 2022. Getty Images

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  Khalid bin Faisal Al Saud, governor of Makkah, talks with Mohammed Ben Sulayem, FIA President, on the grid during the F1 Grand Prix of Saudi Arabia at the Jeddah Corniche Circuit on March 27, 2022 in Jeddah, Saudi Arabia. Getty Images

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  Mohammed Ben Sulayem poses for a photo prior to the F1 Grand Prix of Bahrain at Bahrain International Circuit on March 20, 2022. Getty Images

Formula One owner Liberty Media has accused Mohammed Ben Sulayem of interfering with its commercial rights over comments the FIA president made about the sport's valuation.

Ben Sulayem, who was elected as the head of motorsport's world governing body in 2021, responded to a Bloomberg report that Saudi Arabia's Public Investment Fund (PIF) explored a bid for more than $20 billion.

The body's president said any potential buyers of F1 should have a long-term vision for the sport and not just deep pockets.

He added the FIA had a duty to consider the possible negative impact on fans and promoters, who might have to pay more to host and attend races.

"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," Ben Sulayem said on his personal Twitter account.

"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."

The comments followed his support this month for Michael Andretti's bid to enter an 11th team on the grid – a move most existing teams are resistant to because of the dilution of revenues.

Sky Sports News reported that Formula One's legal head Sacha Woodward Hill and Liberty Media counterpart Renee Wilm had sent a joint letter to the FIA accusing the governing body of exceeding its remit.

The FIA ultimately owns the rights to the championship but signed them over to former supremo Bernie Ecclestone’s Formula One Management in a 100-year deal in 2001 as part of a separation of commercial and regulatory activities.

American conglomerate Liberty Media ended Ecclestone’s reign when it bought F1 from private equity firm CVC Capital Partners for £6.4 billion in 2017.

"The FIA has given unequivocal undertakings that it will not do anything to prejudice the ownership, management and/or exploitation of those rights," Sky quoted Formula One's letter as saying.

"We consider that those comments, made from the FIA president's official social media account, interfere with those rights in an unacceptable manner."

FIA president Mohammed Ben Sulayem, right, speaks with Red Bull Racing team principal Christian Horner. PA

The letter, sent to the FIA's World Motor Sport Council, said the comments risked exposure to "serious regulatory consequences" and the FIA could also be liable.

"Any individual or organisation commenting on the value of a listed entity or its subsidiaries, especially claiming or implying possession of inside knowledge while doing so, risks causing substantial damage to the shareholders and investors of that entity," they said.

“To the degree that these comments damage the value of Liberty Media Corporation, the FIA may be liable as a result.

The letter continued: “[That] any potential purchaser of the Formula One business is required to consult with the FIA is wrong,” and that Ben Sulayem had “overstepped the bounds of the FIA’s remit”.

Reuters reported that teams received copies of the letter on Tuesday from F1 chief executive Stefano Domenicali.

There was no comment from Formula One and no immediate response from the FIA. The National has reached out to the FIA for comment.

The new F1 season starts in Bahrain on March 5. A record 24 races are scheduled to take place with Abu Dhabi hosting the final race on November 26.