Fenway Sports Group, the company that owns Liverpool Football Club, has held talks about buying a majority stake in the Cadillac Formula One team. The possible deal is valued at more than £2 billion and could give the US sports group a major position in one of the world’s most watched motorsport competitions. The discussions come as Cadillac continues its first season in Formula One.
Cadillac entered the championship through a partnership between General Motors and TWG Global, a company controlled by businessman Mark Walter. TWG has been reviewing some of its sports investments and considering possible sales. Its wider portfolio has included interests in major teams and competitions, such as the Los Angeles Lakers, Chelsea and the WNBA’s Los Angeles Sparks.
FSG already has a broad sports portfolio. Along with Liverpool, it owns the Boston Red Sox baseball team and the Pittsburgh Penguins ice hockey team. It also holds a stake in NASCAR team RFK Racing. A move into Formula One would add another major international sport to its business and could help the group benefit from the championship’s growing popularity, particularly in the United States.
Formula One has become more valuable in recent years as its audience and commercial reach have expanded. The sport’s annual revenue has more than doubled since Liberty Media took control in 2017. Its growing profile has attracted investors, sponsors and major companies that see value in reaching a global audience through racing.
However, the talks come at a sensitive time for TWG Global. Walter’s insurance businesses are facing investigations by US authorities over alleged fraud. The company has denied wrongdoing, and the investigations do not establish that Walter or his businesses are guilty of any offence. The situation may add complexity to any major sale involving the group’s assets.
Cadillac’s performance on the track has also been challenging. The team has struggled to score points during its opening season and remains near the bottom of the constructors’ standings. A new investor could bring financial support and long-term planning, but success in Formula One depends on more than money. Any deal would need to support the team’s technical development, staff and competitive plans over several seasons.
