Fenway Sports Group, the owner of Liverpool, has held talks about buying a majority stake in the Cadillac Formula One team in a deal that could be worth more than £2bn. TWG Global has also spoken with other interested parties, but has denied that a sale is imminent.
Cadillac joined F1 this year as a joint venture between General Motors and TWG Global, led by Mark Walter. TWG has been selling some of its sporting interests, including its controlling stake in the Los Angeles Lakers and a 13% stake in Chelsea. It is also seeking a buyer for the WNBA’s Los Angeles Sparks.
Walter is under investigation by the US Department of Justice and the Securities and Exchange Commission over alleged fraud in the management of funds at his insurance companies. TWG has denied that any fraud took place. Walter also controls the Los Angeles Dodgers and has said the MLB team will not be sold.
FSG is considering other sports investments after selling 38% of Liverpool this summer to a consortium that includes Amazon founder Jeff Bezos and Facebook co-founder Eduardo Saverin. That group has an option to complete a full takeover of the club before August 2027. FSG also holds majority stakes in the Boston Red Sox and the NHL’s Pittsburgh Penguins, as well as a 50% stake in NASCAR team RFK Racing.
A source familiar with FSG’s plans said the group has been drawn to Formula One by the sport’s growth over the past decade, particularly in the United States. F1’s annual revenue has more than doubled to $4bn (£3bn) since Liberty Media bought the series in 2017, while the value of its television rights continues to rise.
Walter has valued his Cadillac stake at about £2.24bn, according to a previous Sportico report. The respective ownership shares held by TWG and General Motors have not been made public. Cadillac is bottom of the constructors’ standings in its debut season and has yet to score a point. FSG declined to comment on its investment plans.
Sources: The Guardian Sport.