Saudi Arabia interested in owning F1 team prince says
Owning a Formula 1 team could be the next step for Saudi Arabia after sponsoring the sport and hosting a grand prix, according to the chairman of the kingdom’s automobile and motorcycle federation.
Prince Khalid bin Sultan Al-Abdullah Al-Faisal told reporters in a video call ahead of this weekend’s race in Jeddah that the interest was there.
“It could happen, it could happen soon if you see the growth [of the sport],” he said.
“If you are going to buy a Formula 1 team then people will buy it to make money out of it, especially if it’s going to be bought by one of the PIF [Saudi Public Investment Fund] companies.
“We see Formula 1 is reaching new markets, sales are globally increasing.
“It’s not easy to say which team to buy and how you’re going to manage it. But we have a lot of interest… we’re hosting Formula One, sponsoring teams. So I wouldn’t be surprised if we see an announcement for a Saudi team.”
Saudi Arabia first hosted Formula 1 in 2021, while energy giant Aramco is a global partner of the sport and also title sponsor of the Aston Martin team.
The PIF invested in McLaren in 2021 and already has a 20.5% stake in luxury carmaker Aston Martin, which is separate from the team controlled by Canadian billionaire Lawrence Stroll.
Aston Martin, the carmaker, said last month it would raise more than £125 million ($163.5 million) from Stroll, who is also its chairman, and the sale of its stake in the F1 team.
Investment bank Raine Group has been commissioned by Stroll to help find a buyer for that holding.
There is also lingering speculation about the future of the Renault-owned Alpine team, despite the French carmaker’s insistence that a sale is not on the agenda.
Other Middle Eastern countries who host races have ties to Formula One, with the Qatar Investment Authority (QIA) holding a significant minority stake in the Audi team due to debut next year.
Bahrain’s sovereign wealth fund Mumtalakat is major shareholder in champions McLaren, with Abu Dhabi’s CYVN Holdings recently acquiring McLaren Automotive.
Saudi Arabia has invested heavily in sports over the last few years while critics accuse the kingdom of using to engage in “sportswashing” in the face of heavy criticism over its human rights record.
The country denies accusations of human rights abuses and says it protects its national security through its laws.
Formula 1 is enjoying a surge of support in the Middle East with younger female fans the fastest growing demographic globally, according to Nielsen Sports. The region has four of the 24 races.
Formula 1 teams have soared in value of late, with new audiences attracted by the Netflix docu-series “Drive to Survive.”
Alpine, sixth overall last year with Aston Martin fifth, were valued at around $900m in 2023 after an investor group took a 24% stake for $200m.
With General Motors-backed Cadillac coming in next year as an 11th team, there remains a space for one more.
“Personally, I would like to see a Saudi team,” Prince Khalid said.
“But if Saudi Arabia or one of the Saudi companies will be involved in one of the teams, I would like them to do it the right way and be successful. It’s a tricky question, but why not?”
Source: espn.com