How Saudi Arabia is aiming for billions to take over Formula 1

Formula 1 has grown enormously in popularity in recent years and it has not gone unnoticed. Saudi Arabia, where the Grand Prix will take place next weekend, is targeting a resumption of F1 rights. A first attempt failed, but that did not stop the boat definitively.

In early 2017, Liberty Media bought the racing series for $4.4 billion. Since then, the company has significantly increased the entertainment factor of the racing series. Consider adding new races in the United States, for example, but also collaborating with Netflix in the hit series Drive to Survive.

Formula 1 as a business card

Viewership grew, despite the racing series becoming less easy to watch for free. The German and British channels no longer broadcast all the races for free. For the Dutch, it is therefore the choice between ViaPlay or F1 TV Pro.

Saudi Arabia has also noticed that the racing class is popular. A race in the desert country has been on the calendar since 2021. Apparently, this Formula 1 race is not enough as a calling card for Saudi Arabia. The Arab country wants more. All.

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Last month, a Saudi investment fund showed serious interest in commercial rights. How serious? $20 billion seriously. It should be clear that the country sees money in Formula 1.

Curiously, it was not Liberty Media, but FIA President Ben Sulayem who was the first to accept this mega offer. The FIA ​​is the governing body of Formula 1. “Use common sense and find more than money,” Sulayem said on social media.

Liberty Media angry

It went wrong at Liberty Media. The company owns the commercial rights to Formula 1 and can therefore decide for itself what to do with it. The FIA ​​doesn’t deal with that. “Sulayem has interfered in our affairs in an unacceptable way,” the company wrote in an official letter to the FIA.

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For Liberty Media, that would mean a return of over 354% in just six years. It’s a good investment and seems like an attractive offer. Nevertheless, the current owner kindly thanked him. Liberty Media itself probably also sees the milking cowopportunities offered by Formula 1.

Saudi Arabia and “sportwashing”

We have recently seen more and more Arab countries become excessively interested in popular sports. Think of the World Cup in Qatar at the end of last year and the English clubs being bought out by the countries. For example, a Saudi investment fund took over Newcastle United football club last year. Learn more about the phenomenonsports wash‘.