Liberty Media confirms investigation by US Department of Justice over Andretti F1 rejection

• Andretti’s bid to enter F1 was snubbed earlier this year
• Twelve members of US Congress signed a letter in May questioning the decision

Liberty Media has confirmed it is under investigation by the US Department of Justice (DOJ) for denying Andretti Global entry into Formula One.

Greg Maffei, chief executive of Liberty Media, confirmed the process had begun during the company’s Q2 earnings call last week.

“Looking at Andretti […] there is a DOJ investigation. We intend to fully cooperate with that investigation, including any related requests for information” he said.

“We believe our determination, F1’s determination, was in compliance with all applicable US antitrust laws, and we have detailed the rationale for our decision vis-à-vis [to] Andretti in prior statements.

“We are certainly not against the idea that any expansion is wrong. There is a methodology for expansion that requires approval of the [International Automobile Federation] and [Formula One] and both groups have to find the criteria met and we are certainly open to new entrants making applications and potentially being approved if those requirements are met.”

Related posts

• Why General Motors chose Andretti for its F1 entry bid
  
• Claire Williams exclusive interview: Why she misses F1, watching Williams from afar, and providing opportunities for women
  

It emerged in May that Formula One was facing questions over the Andretti rejection after 12 members of the US Congress signed a letter raising concerns with ‘apparent anti-competitive actions’.

Cadillac, a division of American motoring giant General Motors, and Andretti – owned by former Formula One driver Michael Andretti, son of 1978 world champion Mario Andretti – saw its bid to enter the series rejected earlier this year.

Following the initial call for expressions of interest, and at the end of a comprehensive application process that decided four prospective teams could proceed, the International Automobile Federation (FIA) concluded Andretti was the only candidate to meet the stringent criteria.

Andretti Formula Racing LLC’s submission was passed on to Formula One Management (FOM) for commercial discussions as part of the next stage of the process.

However, in a lengthy statement released on 31st January, Formula One’s governing body announced Andretti would not be a competitive addition to the grid.

The statement concluded with Formula One stating it did ‘not believe that the applicant has shown that it would add value to the championship’.

BlackBook says…

This is unwanted hassle for both Liberty Media and Formula One. Indeed, it is highly unlikely that either expected the DOJ to get involved.

Evidently, Andretti will not go down quietly – opening a UK facility in Silverstone despite the rejection made that obvious – but Congress involvement gives considerable weight to its complaints.

After all, the current Concorde Agreement only requires a new entrant to pay US$200 million as an anti-dilution fee to the rest of the grid. Andretti knows this entrance fee will rise when the next agreement is finalised for the 2026 season.

Proving it has been prevented access illegally would save Andretti hundreds of millions of dollars, but Liberty Media and Formula One would no doubt want Andretti to pay full price if it were to enter the series when the new anti-dilution fee is decided. 

Whatever happens, both sides will hope for a swift resolution so that the uncertainty bubbling under the surface doesn’t linger.