F1 threatens legal action against FIA over President's damaging remarks on on sport's value
F1 and Liberty Media threaten legal action against FIA over President's controversial $20bn valuation comments. Letter claims FIA may be liable for damage to Liberty's value
F1 and its parent company Liberty Media have sent a letter to the FIA condemning the recent comments made by FIA President Mohammed Ben Sulayem on the alleged $20bn price tag for the sport.
The letter, co-authored by F1's Chief Legal Officer Sacha Woodward Hill and Liberty Media's Renee Wilm, claims that the comments made by Ben Sulayem on Twitter on Monday "overstep the bounds of both the FIA's remit and its contractual rights" and that the FIA "may be liable" for any damage to Liberty's value.
The letter constitutes a strong response to Ben Sulayem's remarks in which he described the $20bn valuation as an "alleged inflated price tag" and advised potential buyers to consider the greater good of the sport and come with a clear, sustainable plan, rather than just a lot of money.
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. (1/3)
— Mohammed Ben Sulayem (@Ben_Sulayem) January 23, 2023
Ben Sulayem also expressed concerns about the potential impact on promoters in terms of increased hosting fees and other commercial costs in the event of a sale.
According to the letter, F1 holds the commercial rights to the sport under a 100-year lease agreement signed by the FIA at the beginning of this century.
The letter states that under this contract, F1 has "the exclusive right to exploit the commercial rights in the FIA F1 World Championship" and that the FIA has given "unequivocal undertakings that it will not do anything to prejudice the ownership, management and/or exploitation of those rights."
The letter claims that Ben Sulayem's comments "interfere with our rights in an unacceptable manner" and that any "commenting on the value of a listed entity, especially claiming or implying possession of inside knowledge while doing so, risks causing substantial damage to the shareholders and investors of that entity, not to mention potential exposure to serious regulatory consequences."
The letter concludes by stating that F1 and Liberty "hope and trust that it will not be necessary to address this issue again."
This marks a dramatic escalation in the strained relationship between F1 and the FIA that has been evident during Ben Sulayem's 13-month presidency.
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