Saudi Arabian Sovereign-Wealth Fund Offered Over $20 Billion for F1 Last Year

Saudi Arabia has made big plays in the world of global sports in an attempt to raise its profile on the world stage. Its public oil company Aramco sponsors F1 and is title sponsor for the Aston Martin team, and the country held its first Formula 1 Grand Prix in 2021, but it has much greater ambitions with the sport. Bloomberg reports that the country’s Public Investment Fund (PIF) made a $20 billion-plus offer to buy F1 from current owners Liberty Media last year. The U.S.-based Liberty Media, which bought F1 for $4.4 billion in 2017, turned down the offer.

Bloomberg says the PIF is still very interested in buying F1, and it would put in a bid if and when Liberty decides to sell. But, as F1 explodes in popularity around the world, Liberty might not want to give up the property. A Liberty Media tracking stock for F1—a stock that tracks the performance of a business unit, in this case, F1—currently has a market capitalization of $16.7 billion.

If the PIF were to buy F1, it would be controversial, to say the very least. Saudi Arabia’s human rights record is appalling, and its attempts to enter international sports, from the F1 Grand Prix to the LIV Golf tournament, is seen as sportswashing, the practice of using large-scale sporting events to bolster its reputation. Lewis Hamilton said he was uncomfortable racing in the country, shortly after being sent a letter from a family of Abdullah al-Howaiti, who was arrested at 14, tortured, and sentenced to death at 17. Last year’s Saudi Arabian Grand Prix was literally clouded by an explosion at an Aramco depot six miles from the circuit, the result of a missile strike by Houthi rebels, who are fighting the Yemeni government and a Saudi-led coalition of mostly Arab states. The missile strike took place during a free practice session, but after an all-night meeting among drivers, the rest of the Grand Prix weekend took place.

In F1, as in all sports, money talks, and one imagines it is very difficult for Liberty Media to ignore the advances of the PIF. And as F1 continues its explosive growth, it becomes an increasingly desirable property for Saudi Arabia.