Motor racing-Buy an existing team; FIA president's advice to Andretti

Liberty Media

28/05/2024 12:31

By Alan Baldwin
       May 28(Reuters) - Andretti Cadillac should buy an
existing team instead of  pushing for an 11th entry that has
been rejected by Formula One's owners, the head of the governing
body has told Reuters.
    FIA President Mohammed Ben Sulayem, who last year called for
more teams and fewer races, said that he remained supportive of
increasing the number but that quality was more important than
quantity.
    "I have no doubt FOM (Formula One Management) and
(commercial rights holders) Liberty (Media) would love to see
other teams as long as they are OEMs (car manufacturers)," the
Emirati said at last weekend's Monaco Grand Prix.
    "I would advise them (Andretti Cadillac) to go and buy
another team, not to come as the 11th team.
    "I feel that some teams need to be refreshed. What is
better? To have 11 teams as a number or 10 and they are strong?
I still believe we should have more teams but not any teams. The
right teams. 
    "It’s not about the number, it’s about the quality."
    U.S.-based Andretti Global is led by 1991 CART champion
Michael Andretti, son of 1978 F1 world champion and 1969
Indianapolis 500 winner Mario.
    The FIA approved the application last year but FOM rejected
it while keeping the door open for 2028 when General Motors, who
own the Cadillac brand, might provide an engine.
    The chairman of the U.S. House of Representatives Judiciary
Committee this month launched an investigation.
    "Without mentioning names, there are teams which are
struggling...struggling with performance, struggling even with
management," said Ben Sulayem.
    "It’s about having the right team, not to lose a chance or
an opportunity where someone like GM (General Motors) with a PU
(power unit) is coming to Formula One. 
    "Imagine the impact. We have three races in America. We have
such a huge fan base. But we don’t have a proper (U.S.) team.
I’m so happy to have Ford in (with Red Bull from 2026) but
imagine having GM and imagine having American drivers."
     U.S.-owned Haas, Renault-owned Alpine and Red Bull's second
team RB have all been mentioned in the media as potential
takeover targets, but none are openly for sale.
    Williams are the only team with a U.S. driver, but Logan
Sargeant appears on borrowed time.
    Formula One has a $200 million entry payment, to be
distributed among the 10 teams, for newcomers but that could
rise to $600 million from 2026.
    That might make buying an existing team more attractive,
although valuations are already at more than $1 billion.
    "We have to have a balance. Is $200 million too low? I
believe $600 (million) is something where it is right for the
current market," said Ben Sulayem of the threshold.
    The FIA and F1, whose relations have been frayed, this month
announced a joint strategic plan that was interpreted as peace
breaking out.
    "Peace is always good, you can’t have all the time
unnecessary issues," commented Ben Sulayem, who said a meeting
with Liberty Media boss Greg Maffei had been positive and talks
on a new commercial "Concorde Agreement" were going well.
    "We both understand that we need to go forward and the only
way to go forward is to have much more clarity between us. We
are on the same boat regardless and what we want is
sustainability of the business," added the Emirati.
    "We are with FOM when it comes to business. We are the
partners and we have to also forget the small things and find a
solution how can we address these issues."

 (Reporting by Alan Baldwin in London, Editing by Hugh Lawson)
 ((alan.baldwin@thomsonreuters.com; +442075427933;))