Fortune in F1: Top Teams Now Worth $4 Billion Each
Dec.19 - Renault's Formula 1 team Alpine is worth just under a billion dollars, the French carmaker has announced.
The sport has surged in popularity and value since the commercial takeover and innovations led by Liberty Media, with Forbes recently estimating that the average team has almost quadrupled from $500m in 2019 to almost $2 billion today.
"It is not a trophy investment anymore," Mercedes supremo Toto Wolff told the Financial Times.
"There is economic and financial rationale for sponsors, investors and team owners because, otherwise, people wouldn't do that just for fun."
Indeed, a minority sale at Aston Martin recently gave the Silverstone based team about a $1.3bn valuation, and now 24 percent of Alpine has been sold to a celebrity-linked investor group led by Otro Capital.
In a statement, Renault said the deal values its Alpine team "at around $900 million".
Forbes says the most valuable teams on the grid are Ferrari and Mercedes - each worth almost $4 billion.
"The sport is in tremendous health," Aston Martin's commercial and marketing director Jefferson Slack told the Financial Times.
"It has cracked the US market, and a lot of institutional capital is coming into sports in a big way. It's a good space to be in."
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"It has cracked the US market, and a lot of institutional capital is coming into sports in a big way. It's a good space to be in."
Unless you are a F1 race fan.
$4 BILLION????? Get a grip.
I know I did chuckle to myself seeing those numbers, the main track sponsors are Saudi oil, the newest tracks and biggest fees--arab world, money mayb flowing but not to where it needs to go Renault for example were so desparate for 200 Mill they sold a stake in the team , Come onnnnnnn, that sound like a healthy market?
All this sand $$$ and I don't see the fan interest. What's the end game? $$$ washing, international sports dominance, simple entertainment from the white devil, drive up the price & bail, what?
Venture capitalists job is to buy low and sell high "Usually" I mean theres no dividends etc , like the old saying how dyo make a small fortune in F1..!
The sandmen don't strike me as venture capitalists. I just can't ID their endgame.
Power
Today is a sad day
Mumtalakat, the sovereign wealth fund of Bahrain, has agreed a “full recapitalisation” of McLaren Group, which sees a “simplified share structure and streamlined governance process” moving forward.
Very sad, indeed. Papaya fan since the Bruce & Denny thunder show in the '60s. Happy memories.
In 5 short years Mcl have gone from owning there own Hq, a free supply of championship winning engines, to being a puppet for the Arabs with a customer engine and actually owning Nothing. Why oh Why did I even bother.......... Ron must be thinking, and rightly so
I like Zak. I believe that he is a racer. BUT, maybe too much of a 'business' man. Then again, we can throw sand at the lack of Brit investment in our sport.
Thats a fair assesment, i can only pinpoint Big Jims investment into the Merc team as the only Brit, its become very corporate , maybe thats stifling the rich investing in the Uk, but as sure as eggs are eggs , the likes of Ron,Frank and Eddie,and even Mr Envelope Bernie real characters, not as we have today, media trained and spokes persons for the backroom money boys are gone forever