Greg Maffei Opens Up On F1 Sale Prospects And Role Model Status

Saajan Jogia | Nov 17, 2024

May 4, 2024; Miami Gardens, Florida, USA; Red Bull Racing driver Max Verstappen (1) leads the start of the F1 Sprint Race at Miami International Autodrome. Mandatory Credit: Peter Casey-Imagn Images / Peter Casey-Imagn Images

Greg Maffei, CEO of Liberty Media, the parent company of Formula 1, has shared insights on the sport's sale prospects following its $4.4 billion acquisition in 2017. As he prepares to step down from his role at the end of 2024, Maffei emphasized Formula 1's status as a global role model and its well-earned reputation as the pinnacle of motorsport.

Since Liberty Media's acquisition of Formula 1, the sport has undergone significant transformations, particularly on the sporting front, while its popularity has soared in global markets like the United States. The release of Netflix's docuseries 'Drive to Survive' in 2019 played a pivotal role in this surge, drawing in new audiences and expanding F1's fan base to unprecedented levels.

In early 2023, rumors surfaced about Saudi Arabia's Public Investment Fund (PIF) expressing interest in acquiring Formula 1. At the time, the sport's valuation exceeded $20 billion, and the ten teams were estimated to be worth approximately $1 billion. As a result, Formula 1 has been a role model for several sports, showcasing its immense value and influence in the global motorsport landscape. Speaking to CNBC's 'Squawk on the Street' program, Maffei said:

"Oh, I think F1 is incredibly well positioned. Probably the company I’m proudest to have been involved because we really — Liberty bought it, helped change the strategy, brought in Chase Carey, did an amazing job since brought in after Chase left. Stefano Domenicali has done well. But the business is very well positioned, right?

"I outlined some of it in our slides today. You know, grown the global partnership since 2019. We’ve compounded sponsorship at 16%. We’ve compounded all the revenue streams at something like 12%.

"It’s really been a hallmark of what sports wants to be, you know, growing fan interest through things like Drive to Survive, growing sponsorship, growing high-end experiences. Sort of a model everyone else is a little bit trying to follow. Everyone’s done it super well."

When asked if there were chances of another company acquiring Formula 1, Maffei said:

"Look, I don’t think there’s any plan to sell it. It’s got a great future, but, you know, I suspect the Board of Liberty will be appropriate stewards of the shareholder capital."

Greg Maffei joined Liberty Media in 2005 and became CEO in 2006, leading the company through major acquisitions that strengthened its position in global entertainment. After his departure, Chairman John Malone will step in as interim CEO, bringing his extensive media and cable experience to guide the transition.