(Boursier.com) — Saudi Arabia’s sovereign wealth fund would have tried to buy Formula 1 from Liberty Media. In vain. According to people familiar with the case quoted by ‘Bloomberg’, an agreement could have been reached at the beginning of last year but the owner of the most prestigious motor racing company rejected advances from the Saudi Public Investment Fund. The agency evokes a valuation of more than 20 billion dollars, debt included. The PIF would remain interested in the asset and would be a serious bidder should Liberty Media change its mind and sell F1. Under John Malone, owner of F1 since 2017, motor racing has grown in popularity and seen its value soar.
In recent years, like its Gulf neighbors, Saudi Arabia has been investing heavily in sport as the Kingdom opens up to various more Western forms of entertainment under the reign of Crown Prince Mohammed bin Salman. Riyadh notably distinguished itself by acquiring Newcastle United FC, the Premier League football club, and by hosting major events in the fields of boxing, golf and F1. As the agency recalls, critics called the efforts “sportswashing” — an attempt to distract from its human rights record.
Via Saudi Aramco, the largest oil producer in the world, Saudi Arabia is already present on the circuits after its historic partnership agreement signed with F1 in 2020. The Kingdom has also been hosting a Grand Prix in Jeddah since 2021.
©2023 Boursier.com