F1 CEO sets INCREDIBLE price for sale of the sport

Greg Maffei pictured with Alejandro Soberon and Carlos Slim Jr in Mexico — Photo: © LAT Images

Liberty Media

F1 CEO sets INCREDIBLE price for sale of the sport

Greg Maffei spoke about the long-term future of Liberty Media as owners

Shay Rogers

Sunday 25 June 2023 09:57

Since a $4.2 billion takeover of the sport by Liberty Media in 2017, Formula One has grown exponentially, to the point that they have no desire to sell up at all for the time being.

The introduction of the Drive to Survive Netflix series helped to bring in a massive number of fans, increasing demand for tickets and further races to be added to the calendar.

Without a doubt, 2021’s spectacular end to the season helped to get much of the world talking about the sport – regardless of whether the limelight was positive or not.

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Rumours that the Saudi Arabian PIF had lodged a bid for the sport in January emerged but were never confirmed. FIA President Mohammed Ben Sulayem tweeted to warn about the valuation, sparking controversy which later died down.

Maffei: Any sale “very unattractive”

Speaking on the Walker Webcast, Maffei discussed the current structure of Formula One, and what any sale would have to look like.

“We’re a C Corp, meaning that if we sell a division, we pay corporate level tax, and then any proceeds we would pay that get distributed to our shareholders they would, in addition, pay tax.

“If we were to spin Formula 1 away, create a separate company and wait a sufficient [amount] of time, [and] have no plan or intent to sell – that asset could be sold down the road, and there would be no corporate-level tax.

“So what I [am] saying is, the way we are structured today, given that tax basis, we would not be sellers,” he said.

With Formula One in the ascendancy, it’s hard to see why they would be sellers. Stefano Domenicali is looking to expand the calendar, which is adding more value to the sport.

“If we wish to be sellers, or even consider it, you’d need to do a spin and, spinning it away, there are other reasons why we might do that – it’s not just to do a sale, but the way we are structured that would be very unattractive.

“And, frankly, $20 billion would not be an attractive price. It’s trading for 17/18 [billion], so why 20? I’d want a hell of a lot more than that! We’re pretty bullish on the future.”

The confirmation that the owners are around to stay for a while should be of comfort to teams and drivers, as Formula One continues to be in a good place.

With a record number of races set to happen next year, fans should be rest assured that despite Red Bull’s domination, things are going to get more exciting in the future.