All is quiet on track in Formula One land but meantime the power struggle continues between Liberty Media who own the commercial rights to the sport and the FIA who are enshrined in European law as the regulators of the global motor racing series.
Back in 1999, the European Commission objected to a conflict of interest between the legitimate role of the FIA as regulator of international motorsport and its commercial interests in those same events. In the view of the Commission theFormula One Administration which marked the rights to F1 was imposing restrictive contracts on third parties.
EU forces FIA to give up F1 commercial rights
The result was the Commission deemed Theron the FIA would restrict itself to regulating the sport of Formula One and Bernie Ecclestone who headed up FOA would resign from his position as the Federation’s head of marketing.
In effect the lease to the commercial rights of F1 was sold to SLEC part owned by Ecclestone and the term was set to 100 years. Ecclestone and his partners sold on the rights to American Giant Liberty Media in 2017.
Given the change in marketing strategy, Liberty are now popularising F1 around the world such that last winter it was reported the had been approached by the Saudi Arabian wealth fund to acquire to sport for an eye watering $20bn.
FIA president Mohammed Ben Sulayem responded with a series of tweets from his personal twitter account.
FIA president cautions against F1 inflated price tags
“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.”
This enraged Liberty Media who didn’t like being told who or for how much they could sell on the rights for which they had paid around $8bn, sent a legal warning to Ben Sulayem and the FIA. It stated:
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“Formula 1 has the exclusive right to exploit the commercial rights in the FIA Formula One World Championship” under a 100-year deal.
“Further, the FIA has given unequivocal undertakings that it will not do anything to prejudice the ownership, management and/or exploitation of those rights.
“We consider that those comments, made from the FIA president’s official social media account, interfere with those rights in an unacceptable manner.”
In other words this was an instruction to cease and desist. The letter was also sent to all 10 teams and concluded, “that any potential purchaser of the Formula 1 business is required to consult with the FIA is wrong”.
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Power struggle at the top of F1
With the ball firmly back in his court, Ben Sulayem decided that Liberty Media were just plain wrong. At the Monte Carlo rally always held early in January, the FIA president told AMuS, ”The championship is ours, We have only rented it out.
“So far there are only rumours about a possible sale,” added Ben Sulayem. “But the FIA should have a say and be able to offer advice.”
There then ensued a debate in the F1 media over whether the original deal forced by the EU Commission contained a “Don King clause” allowing the FIA to veto any sale of the commercial rights on reasonable grounds.
Knowing Liberty Media and the F1 teams were opposed to an eleventh team entering the sport, just days after the twitter spat Ben Sulayem announced the FIA were opening an application process which would throughout vet any teams wanting to join the sport.
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In October finally it was revealed Andretti had met the stringent standards and the green light for them to join the grid was given from the FIA.
As of yet Liberty Media have failed to comment on the matter but it is for them to come to a commercial arrangement with Andretti and their sponsors. Andretti claim they are ready to join F1 in 2025 but must be registered as a competitor before June this year.
Liberty Media have given no time scale as to when they will give their thoughts on the matter, but Andretti are now FIA approved to race in Formula One.
Next top a quote was unearthed from a 20 year old website which despite not being public anymore claimed that Ben Sulayem was sexist. The FIA refuted the charges though it appeared clear that Liberty Media were digging for dirt.
Liberty consider FIA breakaway
As the teams were set for this winter break, a story broke suggesting Susie Wolff had breached confidentiality in her FIA role with pillow talk to Toto over matters that were secret.
Without referring to Wolff the FIA said they were launching an investigation into recent “media suggestions” and would look at the processes Liberty Media employed within their organisation. Clearly this was a threat to deem the American owners unfit to own the rights to Formula One.
Wolff hit back through the media claiming she had been victimised and the FIA then issued a statement quickly stating their investigation was complete. Nothing to see here.
Rumours began to emerge that Liberty Media were considering a break away from the FIA and would start a new series to take its place. Of course they would forfeit the rights to F1 if they did this and there’s no guarantee that their new ‘Grand Prix’ racing would attract the entire F1 circus under its umbrella.
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Ben Sulayem says he knows “who is attacking me”
Such splits within sport’s have proven costly over the years given the dilution which comes from the competing events.
Now Mohammed Ben Sulayem has threatened Liberty Media stating the could lose the rights to F1 if they are not careful. In reference to the sexist claims and the improper accusal of Susie Wolff, the FIA president tells Motorsport Magazin the following.
“I know who is attacking me. And they think I don’t know that. Do you really think I would be in this position if I was only surrounded by stupid people? Of course not, my team is very smart. The paddock is a small living environment, everyone knows everyone.
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Liberty threatened with F1 rights forfeit
“I always know when someone leaks something about me or makes something up about me. And what do I do then? I smile at them. I always know who did it and I smile at them.
“I’ll just say one thing, and I’ll say it loud and clear: the day we wake up without the FIA will never come. That sets us apart from the rest. Liberty has every right to sell Formula 1. A different reality could immediately arise in which Formula 1 is not theirs,” he threatened.
The lawyers will now be pouring over the fine print in the EU Commissions judgement on the role of the FIA. Should it be possible the commercial rights contract can be cancelled despite Liberty paying $8bn for them, Ben Sulayem will have won the war of words thats been rumbling on and asserted himself in fact the one who decides the future of Formula One.
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Paranoid mentality. Suleyman should be gone. Yesterday, as in before Abu Dahbi.