Saudi Arabia Explores Ownership of a Formula 1 Team

Saudi Arabia is exploring the possibility of acquiring a Formula 1 team, spurred by the country’s growing interest in motorsports following its sponsorship and hosting of F1 events. Prince Khalid noted the potential profitability for the Public Investment Fund (PIF) if it enters this market, despite past challenges in acquiring a team.

Saudi Arabia is considering the acquisition of a Formula 1 (F1) team, extending its involvement beyond sponsorship to ownership. Prince Khalid Bin Sultan Al-Abdullah Al-Faisal, chairman of the kingdom’s automobile and motorcycle federation, emphasized the growing interest in the sport, noting the potential profitability if the Public Investment Fund (PIF) engages in this venture.

Prince Khalid highlighted the continued expansion of F1 into new markets, indicated by increasing global sales. He remarked on the need for careful consideration regarding which team to acquire, stating that despite it being a complex decision, there is considerable interest from Saudi entities. He further expressed optimism about a future announcement for a Saudi team.

PIF previously attempted to buy an F1 team three years ago, but discussions faltered due to Liberty Media Corporation’s refusal to sell, despite the valuation exceeding $20 billion. This valuation included the debt associated with the franchise. Meanwhile, other Middle Eastern investors are involved, such as the Qatar Investment Authority, which has a minority stake in Audi’s upcoming F1 team.

As Saudi Arabia has hosted F1 races since 2021 and maintained partnerships with teams like Aston Martin and investment in McLaren, the country’s ambitions within the motorsport are evident. The growth of F1 in the region positioned Saudi Arabia well to potentially establish a prominent presence in the racing world.

Saudi Arabia’s bid to own an F1 team reflects its drive to enhance its role in motorsports, following successful sponsorships and event hosting. While previous attempts faced challenges due to unwillingness from F1’s owners, the future remains promising for Saudi investments in this expanding market. As the region embraces F1, partnerships and investments position it for potential ownership, signaling a significant shift in the landscape of motorsports.

Original Source: www.agbi.com