Lawrence Stroll, a Canadian billionaire who is preparing Formula 1 for Las Vegas Grand Prix has sold a minority stake in the Aston Martin to the US private equity company Arctos Partners.
According to a source familiar with the transaction, Arctos’ investment, which includes a stake in Boston Red Sox as well as Liverpool Football Club, values F1 at around £1 billion ($1.2billion).
Stroll is selling his first shares in the F1 Team, for which son Lance drives. Stroll is the biggest shareholder of Aston Martin Lagonda Global Holdings Plc – the British luxury automaker. Fernando Alonso, Aston Martin’s second F1 driver, is currently fourth on the rankings.
reported last month Aston Martin had been approached by potential sponsors.
Stroll told the British Grand Prix audience at Silverstone’s Aston Martin F1 headquarters that the Formula One teams have appreciated in value over the past few years because of the popularity of sport and cost caps. “We’ve talked, but nothing is on the table.”
Formula 1 Race in Las Vegas Doesn’t Live Up to the Hype
Aston Martin said that the deal was made just before the highly anticipated Las Vegas Grand Prix, which will take place this weekend. It shows the growing popularity of F1 racing in the US.
Stroll, in an interview with Business Insider, said, “My commercial team told me that we feel there are some great synergies and some great commercial opportunities working with these thirty teams, especially with the focus on the US and growth in the US.” He was referring to Arctos’ investments in sports assets.
This is just the latest in a series of deals and rising values for F1, whose popularity has soared in the US, thanks in large part to the Netflix documentary Drive to Survive.
Greg Maffei said in “The Close,” the program of Liberty Media Corp.. “Now, the bottom teams have a value of about a billion dollars or $750 million. The top teams probably are worth around $3 billion.”
MSP Sports Capital led a funding round into McLaren’s F1 Team in December 2020, which included Walmart heir Rob Walton. It was reported that MSP Sports Capital was the lead investor in McLaren F1 team’s funding round for December 2020. Walmart heir Rob Walton was also involved. McLaren valued the investment at £560m, according to the company.
Vegas is the third F1 Grand Prix in the US to be held this season, after races in Miami. Liberty Media Corp. is heavily investing in marketing F1 in the US, since it bought the sport in 2017.
Stroll is still trying to revive the listed automaker he saved in 2020. Since then, the group has raised capital from investors including Saudi Arabia’s Public Investment Fund.
Stroll stated in an interview, “I want to make it clear that the team is profitable and does not need money.”
The terms of the F1 investment, which should close by the end the year, and its valuation were not revealed. Raine group advised Aston Martin in the investment.