According to those acquainted with the situation, the Sovereign Wealth Fund of Saudi Arabia was trying to include Formula 1 racing in its expanding portfolio of sporting ventures. A potential deal fell through in the early stages last year because F1’s owner, Liberty Media, was unwilling to sell the high-profile franchise, which Saudi Arabia’s PIF valued at well over $20B including debt
The latest reports, however, indicate that the PIF is still interested in the asset and would make a strong offer should Liberty Media decide to sell, according to Arabian Business. Under Crown Prince Mohammed bin Salman, Saudi Arabia has been making significant investments in sports as it expands its acceptance of more Western-style entertainment. In recent years, it has invested in the English Premier League football team Newcastle United FC and held significant boxing, golf, and Formula 1 events, according to Bloomberg.
The Public Investment Fund has also been mentioned in connection with a purchase offer for the WWE sports entertainment company. An acquisition of F1 would be a flagship one. Since Liberty Media, owned by billionaire John Malone, paid $4.4B to acquire the sport in 2017, the sport’s popularity has increased. Through the expansion of F1 in Asia and the US, as well as the introduction of a direct-to-consumer streaming service, Liberty Media aims to attract a new generation of fans.
Another location in which the proprietors of F1 have concentrated is the Middle East. In the 2023 season, four races will take place in the region, with the first two scheduled to occur in March in Bahrain and Saudi Arabia. The largest oil producer in the world, Saudi Aramco, and Formula 1 signed a historic sponsorship agreement in 2020. The market value of the F1 business’s Liberty Media tracking stock, which more than doubled over the previous four years, is approximately $15.2B.
