Tensions between the FIA and FOM are clear following Twitter remarks from Mohammed Ben Sulayem and F1's subsequent letter to the governing body. So what's happening in the background and where do the two parties take things from here? Analysis:
Rather than it being a side story to F1’s ongoing Netflix-era soap opera, it potentially marks the start of a change of dynamic in the way the championship is run.
While the straw that broke the camel’s back was the way that Ben Sulayem spoke out about concerns over the rumoured $20 billion offering for F1 from the Saudi Arabian sovereign wealth fund, tensions between him and FOM have been steadily bubbling away for the last 12 months. Christian Horner, Max Verstappen, FIA F1 Champion, Mohammed Ben Sulayem, FIA President, Stefano DomenicaliThe FIA’s issuing of the record-breaking 2023 calendar press release with his quote before F1 knew it was going out, and that awkward on-stage moment with Red Bull boss Christian Horner at the FIA gala over the Japanese GP confusion, provoked some figures within the series.
F1 shareholders did gain though, with the share price of FWONA jumping by 7.8% from less than $59 on Friday before the Bloomberg story appeared, to hit a peak of $63.60 later that day before steadily slipping back. The share price lift also meant ultimately, a $20 billion price tag does not seem excessive, with the market cap of FWONA currently standing around the $16 billion level.
Where they point to the biggest change coming is perhaps within the corridors of the FIA, depending on how Ben Sulayem’s action is viewed by those inside the governing body. FOM’s warning that the FIA could be ‘liable’ for damages caused by Ben Sulayem talking on commercial matters will not be lost on members – for government regulators do not take kindly to anything that unduly impacts company valuations.
In the press release issued at the time by the European Commission, it stated: “The role of FIA will be limited to that of a sports regulator, with no commercial conflicts of interest.”
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