Ryan Reynolds, RedBird Capital Buying Into F1’s Alpine in $900M Deal
RedBird Capital and actor Ryan Reynolds are part of a group buying into Alpine Racing in a deal that values the Formula 1 team a little north of $900 million.
The investors, led by RedBird and Otro Capital, are paying $218 million (€200 million) for 24% of the team, which is owned by French automotive giant Renault. The group will utilize its expertise in franchise operation and media to drive new revenue streams for Alpine, according to an announcement on Monday.
More from Sportico.com
Ryan Reynolds, RedBird $900M Alpine Deal Reflects F1 Financial Changes
Rokit's Defense Shield Tested as Bankruptcy Trustee Lawyers Up
Ryan Reynolds Keeps Wrexham Sponsor Close With Blake Lively's Betty Buzz
“This partnership will accelerate Alpine F1 development by diversifying revenue drivers and increasing brand value,” Renault Group CEO Luca de Meo said in a statement.
This is the first investment for Otro Capital, a sports-focused firm that was recently launched out of RedBird. Otro co-founder Alec Scheiner, a RedBird partner, will join the Alpine board as part of the deal. Reynolds’ participation, through his Maximum Effort Investments, includes actors Michael B. Jordan and Rob McElhenney, the latter of whom is Reynolds’ partner in Wrexham AFC.
The $900 million valuation underscores the dramatic changes in F1’s business over the last few years. The global racing circuit is embracing new media, moving deeper into new international markets (such as the U.S.), and perhaps most importantly, implementing cost cap measures that have improved the cash flow profile of its teams. As an example of how much the economics have changed, Renault bought a prior version of the Alpine team in 2015 for £1, or roughly $1.50.
The investment does not include Alpine Racing SAS, the France-based F1 engine manufacturer, which will remain wholly owned by Renault Group.
The new investors also include Paul Wachter’s Main Street Advisors, and the family of late billionaire Jon Huntsman Sr.
Best of Sportico.com
