F1 issues stern response to FIA president's ‘unacceptable’ comments about the sport’s $20 billion value

F1 has issued a stern response to the FIA president's 'unacceptable' comments about the sport's $20 billion value. In reaction to Mohammad Ben Sulayem commenting on a Bloomberg report of a possible bid to buy F1, senior officials have been angered, and legal heads have accused FIA of straying beyond its remit.

In a report published by Sky Sports, as it got hold of the letter issued to the 10 teams, F1 general counsel, Sacha Woodward Hill, and Renee Wilm, chief legal and administrative officer of Liberty Media Corporation, F1's controlling shareholder, have accused the FIA - motorsport's governing body - of straying beyond its remit.

The letter states that the FIA had tried to interfere in an unacceptable manner, referring to the comments made by the president. The letter stated:

"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."

On a rather damning note, the letter stated that the FIA president had overstepped his remit and that his comments could damage the value of the Liberty Media Corporation. The letter stated:

"Mr.Ben Sulayem had overstep[ped] the bounds of the FIA's remit saying that "any individual or organisation commenting on the value of a listed entity or its subsidiaries, 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".

It further noted:

"To the degree that these comments damage the value of Liberty Media Corporation, the FIA may be liable as a result."

What led to the stern response from F1?

The stern response from Liberty comes after comments made by FIA president Mohammad Ben Sulayem. Referring to a Bloomberg report of an offer worth $20 billion put forth by Saudi Arabia to buy F1, the FIA president tweeted:

"As the custodians of motorsport, the FIA, as a non-profit organization, 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."

The comments have outraged senior officials at Liberty Media and the stern response is only going to make things even tenser between the two organizations.