Further conflict between Sulayem and FOM?
Posted: 25 Jan 2023, 19:40
Having seen the rather noticeable difference in response from Mohammed Ben Sulayem and FOM/Liberty Media over Andretti's public announcements to submit an application, we now have another public spat to mull over.
A few days ago, Bloomberg published an article claiming that the Saudi Arabian sovereign wealth fund (the Public Investment Fund, or PIF) approached Liberty Media about buying FOM. They have claimed that the PIF proposal would have valued the sport at $20 billion, but it appears that Liberty Media declined the offer and told PIF that they were not interested in a deal and discussions petered out quite quickly.
In response, we've had Mohammed Ben Sulayem taking to his personal social media accounts to criticise the proposal, stating the following:“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.”
In response, we've had a rather terse and angry letter from FOM to Sulayem complaining that he was interfering in their commercial affairs in an unacceptable manner that breached the terms of the agreement between the FIA and FOM, and stated that his comments "risks causing substantial damage to the shareholders and investors of that entity, not to mention potential exposure to serious regulatory consequences".
Given that all reports of the talks between Liberty Media and the PIF indicate that there was very little interest from FOM in PIF's proposal, it seems odd that Sulayem has reacted in quite such a public way. It's also questionable, given the terms of the deal that the FIA, FOM and the European Commission struck over the handling of F1's commercial rights, if Sulayem should be making those sorts of statements given that it has a direct impact on the commercial value of F1.
It does seem to be the case that Sulayem wants to place himself at the centre of a number of stories that involve F1 - it's been noted that Sulayem has been bypassing the FIA's own communications team and has largely operated on his own with his more recent statements to the press, almost as if he wants himself, and not the organisation he leads, to be the focus of attention.
A few days ago, Bloomberg published an article claiming that the Saudi Arabian sovereign wealth fund (the Public Investment Fund, or PIF) approached Liberty Media about buying FOM. They have claimed that the PIF proposal would have valued the sport at $20 billion, but it appears that Liberty Media declined the offer and told PIF that they were not interested in a deal and discussions petered out quite quickly.
In response, we've had Mohammed Ben Sulayem taking to his personal social media accounts to criticise the proposal, stating the following:“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.”
In response, we've had a rather terse and angry letter from FOM to Sulayem complaining that he was interfering in their commercial affairs in an unacceptable manner that breached the terms of the agreement between the FIA and FOM, and stated that his comments "risks causing substantial damage to the shareholders and investors of that entity, not to mention potential exposure to serious regulatory consequences".
Given that all reports of the talks between Liberty Media and the PIF indicate that there was very little interest from FOM in PIF's proposal, it seems odd that Sulayem has reacted in quite such a public way. It's also questionable, given the terms of the deal that the FIA, FOM and the European Commission struck over the handling of F1's commercial rights, if Sulayem should be making those sorts of statements given that it has a direct impact on the commercial value of F1.
It does seem to be the case that Sulayem wants to place himself at the centre of a number of stories that involve F1 - it's been noted that Sulayem has been bypassing the FIA's own communications team and has largely operated on his own with his more recent statements to the press, almost as if he wants himself, and not the organisation he leads, to be the focus of attention.