Saudi Arabia’s Public Investment Fund (PIF) explored acquiring Formula 1 (F1) in a potential deal valued at over $20 billion, including debt. Discussions began last year but ultimately faltered as Liberty Media, F1’s owner, showed no interest in selling the franchise.
According to Bloomberg, the PIF considered purchasing F1 outright from Liberty Media, but the deal didn’t progress due to the latter’s reluctance to sell. Despite this setback, the PIF remains interested in the asset and would be a serious bidder if Liberty Media changes its mind.
The potential acquisition highlights the PIF’s ambition to acquire major global sports assets. Saudi Arabia has been actively investing in the sports sector, with significant investments in English Premier League football club Newcastle United FC and LIV Golf. The kingdom aims to boost its sports industry’s contribution to GDP to 0.6% by 2030, up from 0.2% currently.
This move is part of Saudi Arabia’s broader strategy to diversify its economy and promote international tourism. The country has hosted several major events, including F1 races, and plans to continue investing in sports to achieve its economic goals.
Liberty Media acquired F1 in 2017 for $4.4 billion, and the franchise’s value has since increased significantly. The PIF’s potential bid underscores the growing appeal of F1 as a high-profile, long-term investment opportunity for international investors.