20,000 Million Dollars for the F1? The Proposal that can Transform Sport

The countries of the Middle East continue to attract the attention of international sport, after the successful organization of the World Cup in Qatar last year; the brilliant signing of Cristiano Ronaldo to the Arabian league; and the strong influence they have on most sports with the largest fan base. This time the bet is much more ambitious, and they want to count on F1 in their entertainment industry. A wish from years ago, but one that is getting closer to being fulfilled.

The economic proposal of the Saudi kingdom was at the beginning of 2022, when they offered the American consortium Liberty Media 20,000 million dollars, a figure almost five times higher than what they paid in 2016 (4,400 million approximately). Despite the fact that the initial proposal was rejected, the PIF fund announced in recent days that it maintains its offer and is willing to increase it to reach a final agreement.

A proposal that goes beyond simple money

In addition to the above, they have share capital in the McLaren and Aston Martin teams, their oil company Aramco is also an official sponsor of the 'Big Top' of motorsports, not counting the investments they have made in different circuits around the world.

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Saudi Arabia is betting heavily on motor sports. The Dakar Rally will celebrate its fourth edition in that country this year, they have developed Formula E races and have the second Grand Prix of the Formula One calendar that takes place on the Corniche de Jeddah street circuit, considered by experts as the fastest in the world.

With respect to infrastructure, Arab investment surprises locals and strangers. On the outskirts of the capital Riyadh, the Quiddiya mega-project is being built, a motor city with cutting-edge technology, which will have more than 10 circuits where they hope to host all kinds of activities in the next five years, including races of all kinds of Moto GP categories.

A lucrative business, regardless of the crisis

Despite the fact that Formula One's profits were affected by the pandemic, its value is estimated at approximately 15,000 million dollars. The great potential of the premier category of motorsports is focused on its strong media impact, the diversity of circuits that are located in different countries of the world and the strong penetration it is having in the United States. The North American giant will have the two circuits in Miami and Austin, in addition to the confirmation of the Las Vegas Grand Prix at the end of the year.

This season will be definitive for the future of Formula One, which has not been without controversy, environmentalists consider that the 2023 calendar does not comply with the zero carbon commitment due to the multiple jumps between continents. It is hardly understandable that he goes from Azerbaijan to Miami, to then fly to Europe, two weeks later to travel to Canada and then return to Europe, not counting the marathon at the end of the season, where he travels from Qatar to Mexico, ending in Abu Dhabi. .

According to an analysis by DHL, the shipping company that is in charge of Formula 1 logistics, it is estimated that each team needs an average of forty containers to function throughout the calendar, which will be moved by ship, mainly to save freight costs. The great difficulty of this 2023 is that the displacements in circuits that cross the ocean are numerous, which will have to include more air travel.

If the trend continues, Saudi Arabia will maintain the 'Pole Position' for being the new owner of Formula One and that it would join competitions that it already acquired such as the Super Leagues of Spain, Argentina, and Italy. In addition, to this is added its aspiration to host the Club World Cup in 2025 and the National Team World Cup in 2030 jointly with Greece and Egypt.