By Jonathan Ntege Lubwama
- Micheal B. Jordan, Ryan Reynolds and Rob McElhenny have acquired a 24% stake in Formula 1 Team Alpine for $220M
- Formula 1’s revenue reached $2.5 billion in 2022, up 20%
As Formula 1 continues to grow in popularity in the United States, a trio of Hollywood stars are getting in on the action. Creed actor Michael B. Jordan, along with Ryan Reynolds and Rob McElhenny, have joined forces to invest in the Formula 1 team Alpine. As part of a collective of investors, they have acquired a 24% stake in the Renault-owned team, worth a total of $220 million in a deal that will value Alpine at over $900 million.
Other investors include Otto Capital and RedBird Capital, the latter of which owns renowned sports teams such as the Boston Red Sox and English Premier League side Liverpool. Additionally, RedBird Capital owns French team Toulouse and Italian giants AC Milan. Currently ranked fifth in the F1 World Championship, Alpine presents an opportunity for these investors to capitalize on its untapped potential.
Why This Matters: This investment by Jordan and the other actors in the Alpine Formula 1 team carries significance on multiple fronts. Firstly, it showcases the increasing interest of high-profile celebrities and entertainment industry figures in the world of motorsports. Their involvement brings attention and potentially new audiences to Formula 1, expanding its global reach.
Formula 1’s revenue reached $2.5 billion in 2022, up 20% from 2021. F1 noted its key measure of primary revenue rose 14%, split between race promotion fees (28.6%), media rights (36.4%) and sponsorship (16.9%). However, the increase in revenue came in tandem with an increase in costs from $421m to $593m across various areas.
They will also bring their track record in other successful ventures, such as Reynolds and McElhenny’s ownership of Wrexham Football Club and Jordan’s minority stake in the English Premier League club, Bournemouth AFC. This suggests their ability to leverage their brand power and storytelling capabilities, to enhance the profile of Alpine Racing. Partnerships like these align with the trend of non-traditional investors entering the sports industry, bringing fresh perspectives and potentially disrupting the established dynamics.
What’s Next: With this investment, the trio is poised to make strategic contributions to Alpine Racing. Their collective involvement signifies a potential infusion of new ideas, marketing strategies, and storytelling techniques that could benefit the team. Leveraging their influence and global reach, they may attract sponsors, partners, and fans who are drawn to the convergence of entertainment and motorsports. This collaboration could also pave the way for cross-promotional opportunities between Alpine and their other ventures, generating synergistic benefits for all parties involved.
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