BREAKING: F1 Owners Under Investigation by US. Department of Justice

Alex Harrington | Aug 8, 2024

Jun 8, 2024; Montreal, Quebec, CAN; Ferrari driver Charles Leclerc (MCO) races during FP3 practice session of the Canadian Grand Prix at Circuit Gilles Villeneuve. Mandatory Credit: David Kirouac-USA TODAY Sports / David Kirouac-USA TODAY Sports

Liberty Media, the ownership entity of Formula 1, is now under investigation by the U.S. Department of Justice's Antitrust Division. The probe focuses on the contentious decision to reject Andretti Global's bid to join the premier racing league as its 11th team.

At the heart of the investigation lies the concern over whether Formula 1's decision breaches U.S. antitrust laws. This decision was reportedly influenced by assessments suggesting Andretti might lack competitiveness and provide insufficient commercial value in the medium term. Additionally, existing teams' hesitance to dilute their prize pool with another competitor contributed to the rejection.

Andretti Global, in its ambitious bid to enter Formula 1, had partnered with General Motors' Cadillac and set up operations in Silverstone, engaging in significant recruitment drives including the hiring of former F1 figure Pat Symonds. Despite meeting technical requirements from the FIA, their application was stymied at the Formula 1 level.

During a quarterly earnings call, Greg Maffei, CEO of Liberty Media, confirmed the ongoing investigation.

"Looking at Andretti, as you saw this morning, we announced that there is a DoJ investigation,” Maffei stated. He further assured, “We intend to fully cooperate with that investigation, including any related requests for information.”

Maffei defended their decision against Andretti's bid, asserting confidence in their legal standing:

“We believe our determination, F1's determination, was in compliance with all applicable US antitrust laws, and we've detailed the rationale for our decision, vis-à-vis Andretti in prior statements.”

The rejection of Andretti's bid also attracted political scrutiny. The chairman of the United States House Judiciary Committee initiated an investigation following F1 legend Mario Andretti's testimony on Capitol Hill. Republican Jim Jordan has specifically sought clarity on the decision-making process that excluded Andretti from joining the league.

Liberty Media maintains its openness to expanding Formula 1 but highlighted the necessity for any new team to satisfy the approval standards of both the FIA and Formula 1.

“We are certainly not against the idea that any expansion is wrong. There is a methodology for expansion that requires approval of the FIA and the F1 and both groups have to find the criteria met. We're certainly open to new entrants making applications and potentially being approved if those requirements are met,” Maffei elaborated.

This ongoing investigation not only raises questions about the governance and decision-making processes within Formula 1 but also about the transparency and fairness of entry criteria in global sports leagues. As the case unfolds, we'll be sure to be watching.