Liberty Media Confirms F1 Under DOJ Investigation Over Andretti Rejection

Source: Sam Bagnall / Getty

MERIDIAN, Colo. — The ownership group in charge of Formula One has confirmed that they are being investigated by the U.S. Department of Justice.

The investigation into Liberty Media and F1 stems from the series’ rejection of Andretti Global’s recent bid to join the F1 paddock as an 11th constructor. Liberty Media CEO Greg Maffei confirmed the investigation to shareholders in the company’s latest quarterly earnings call.

The DOJ investigation centers around accusations of possible antitrust violations within F1’s denial of Andretti.

“Looking at Andretti, as you saw this morning, we announced that there is a DOJ investigation,” Maffei told shareholders and business analysts. “We intend to fully cooperate with that investigation, including any related requests for information.”

Contrary to many indicators that surrounded Andretti’s bid to join Formula One earlier this year, Maffei also said that the series is open to expansion to an 11th constructor.

“We are certainly not against the idea that any expansion is wrong,” he said. “There is a methodology for expansion that requires approval of the FIA and the F1 and both groups have to find the criteria met.”

This isn’t the first inquiry into F1’s rejection of Andretti. Just days after F1’s decision was made public, lawmakers on Capitol Hill led by Rep. Jim Jordan (R-OH) sent a letter to Maffei and F1 CEO Stephano Domenicali demanding a further explanation of why the series and its current 10 constructors denied Andretti Global.

“Sports leagues, like Formula One, operate in a notable area of antitrust law in which some degree of collusion is necessary for the creation of the product,” Jordan claimed in his letter to both men. “However, when a sports league deviates from its rules and practices in a manner that reduces competition and depresses consumer interest in the product, the collusion may amount to anti-competitive conduct.”

Maffei remains certain that they are within their legal rights to have denied Andretti’s application.

“We believe our determination or F1’s determination was in compliance with all applicable US anti-trust laws,” he said. “And we’ve detailed the rationale for this decision vis-a-vis Andretti in prior statements.”

Andretti Global will have another chance to join F1 once the series’ new Concorde Agreement takes effect.

In their original explanation of their decision Formula One said that at the moment adding Andretti Global and their GM Cadillac-brand partnership to the paddock “would not add value to the series.” They also expressed concern about Andretti’s ability to muster the financial commitments required to maintain a competitive team.

This, of course, was after the international governing body for motorsport, the FIA, gave resounding approval to Andretti Global to pursue joining the Formula One grid.

Andretti Global, in the meantime, has not waivered in their push to join Formula One. They have continued looking into setting up European-based operations for their ‘Andretti Cadillac’ F1 effort. The team has also confirmed they are looking into expanding their footprint into the NASCAR Cup Series. Andretti Global is currently one of the most diverse racing teams in the world competing in series such as the NTT IndyCar Series, Indy NXT Series, Formula E, IMSA WeatherTech Sportscar Series, Australian Supercars, and Super COPA.

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