As reported by the analytics and equity trading platform Bloomberg, Saudi Arabia’s sovereign wealth fund expressed its interest in buying Formula 1 a few months ago and evaluated the opportunity of making a bid to acquire the sport from its current commercial rights holder Liberty Media.
As reported by Bloomberg, the Saudi Arabia Public Investment Fund (PIF) valued Formula 1 in excess of $20 billion including debt, a value well above the $4.4 billion paid by John Malone’s Liberty Media to buy F1 six years ago.
Yet from the very start of the discussions, it was explained clearly by Liberty Media that the sport was not for sale at this stage.
Despite the outcome, Saudi’s wealth fund is still interested in Formula 1, a product which it it still confident it can add one day to its increasing portfolio of sporting franchises and events.
Under the ruling of Crown Prince Mohammed bin Salman, Saudi Arabia has invested in many sporting events such as the English Premier League football club Newcastle United and in professional golf tour LIV Golf.
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Saudi Arabia organized its first Formula One Grand Prix two years ago at the Jeddah Circuit and the venue will most likely contnue on the F1 calendar for at least ten more year. The Formula One is part of the Kingdom’s Vision 2030 strategy that has the target of reducing its dependence on its oil reserves.
Saudi’s state oil company Aramco – one of the most valuable countries in the world – signed a partnership agreement with Formula One two years ago to become a global partner of the sport was signed up by Formula 1 as a global partner back in 2020. At the same time it signed a long-term strategic deal with the Aston Martin F1 team.
In addition to this, last summer, PIF brought a stake in Aston Martin Lagonda, providing the troubled automotive company part owned by a consortium of investors led by executive chairman Lawrence Stroll an important influx of cash which will help the luxury car maker pay down its huge debt.
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