In the competitive and lucrative realm of Formula 1, attracting a massive global fan base and generating billions of dollars in revenue is no small feat. It requires substantial investments in cutting-edge technology, top-tier talent, and strategic marketing endeavors. Recognizing this, a consortium of influential investors, spearheaded by Otro Capital, has pooled their resources to secure a substantial 24% Alpine F1’s ownership stake. The racing team, endorsed by the renowned Renault Group, has seen its value soar to approximately $900 million thanks to this landmark deal, which infuses an impressive $218 million into the team’s operations.
But who are these prominent investors, and what drives their involvement in this venture? Let’s delve into the backgrounds of these key players and explore how they plan to propel Alpine F1 to unprecedented heights.
The Hollywood Connection: Reynolds and McElhenney’s Leap into F1
Among the prominent investors, two notable faces emerge from the crowd: Ryan Reynolds and Rob McElhenney, distinguished Hollywood actors who have left an indelible mark not only in the entertainment industry but also in the world of business.
Ryan Reynolds, celebrated for his iconic roles in “Deadpool” and “The Proposal,” boasts a remarkable acumen for marketing and branding. He achieved significant success with the sale of his gin company, Aviation American Gin, for a staggering $825 million in 2020. In 2023, he made headlines by selling Mint Mobile, his wireless carrier venture, for a colossal $1.7 billion. Moreover, Reynolds holds a stake in Nuvei, a Montreal-based payment technology enterprise.
Rob McElhenney, the creative force behind “It’s Always Sunny in Philadelphia,” is an entrepreneur and investor in his own right. Alongside Reynolds, he co-owns Wrexham AFC, a Welsh soccer club that the duo acquired for $3 million in 2021. Their innovative approach transformed it into a global sensation, documented in a captivating series on Disney+.
Reynolds and McElhenney, bonded by friendship and a shared passion for sports and entertainment, perceive Alpine F1 as an ideal canvas to imbue with their creative expertise. In their eyes, Formula 1 represents a sport with a colossal fan base and untapped growth potential, making it an enticing platform for their ingenuity. Reynolds enthusiastically remarked, “We are thrilled to be part of this exciting venture with Otro Capital and Alpine F1. Formula 1 is a sport that demands precision, teamwork, and innovation, and we are looking forward to contributing to its success.”
The Aces of Athletics: Champions in Alpine F1’s Corner
Another exceptional segment of investors in this groundbreaking deal comprises prominent figures in the sports industry, each an exemplar of excellence and stardom in their respective domains.
Patrick Mahomes, the dynamic quarterback of the Kansas City Chiefs, stands out as one of the most successful figures in the NFL. As a two-time NFL MVP and two-time Super Bowl champion, Mahomes made history by inking a record-breaking $503 million contract extension with the Chiefs in 2020, securing his position as the highest-paid player in American sports history.
Travis Kelce, Mahomes’ teammate and a premier tight end in the NFL, boasts an impressive track record as an eight-time Pro Bowler and two-time Super Bowl champion. He holds multiple records for receiving yards and touchdowns among tight ends.
Rory McIlroy, a luminary in the world of golf, clinches his status as a four-time major champion and the current No. 2-ranked player worldwide. With 28 professional tournament victories, including the U.S. Open, the British Open, the PGA Championship, and the FedEx Cup, McIlroy ranks among the highest-paid athletes globally, amassing over $50 million annually through prize money and endorsements.
Anthony Joshua, the Olympic boxing gold medalist and two-time former unified world heavyweight champion, has emerged as one of the most beloved and marketable boxers on the international stage. With 22 knockout victories out of 25 professional fights, Joshua commands colossal audiences and impressive pay-per-view numbers.
Trent Alexander-Arnold, an English international soccer player and a right-back for Liverpool FC, has experienced glory with one of Europe’s most successful clubs. His trophy cabinet includes the Champions League, Premier League, FIFA Club World Cup, and UEFA Super Cup, alongside acclaim as one of the finest defenders and crossers in the sport.
Juan Mata, a professional soccer player gracing the midfield for Manchester United, a global soccer powerhouse, boasts an illustrious career marked by numerous trophies. Notably, he has tasted victory in the World Cup, the European Championship, the Champions League, the Europa League, and the FA Cup. Mata’s philanthropic spirit shines through in his co-founding of Common Goal, an organization encouraging soccer players to contribute 1% of their salaries to support grassroots football initiatives worldwide.
These celebrated athletes have aligned with Otro Capital’s investment group out of a shared dedication to excellence and innovation in the world of sports. Moreover, they recognize the untapped potential of Formula 1, which they believe can benefit from their extensive experience, knowledge, and expansive network. Mahomes articulated their collective vision, saying, “I’ve always had a passion for all sports. The opportunity to lead an investor group with Travis in Alpine F1 alongside Otro Capital was one I couldn’t pass up. It’s an exciting time for the sport, and this is an opportunity to bring our shared values to the world stage.”
The Vision: Transforming Alpine F1 into a Powerhouse
The investment consortium, bolstered by the inclusion of RedBird Capital Partners, Maximum Effort Investments, the Huntsman Family, and Main Street Advisors, envisions a bright future for Alpine F1. Their ultimate goal is to elevate the team to a position where they can compete head-on with giants like Mercedes, Red Bull, and Ferrari.
To achieve this, the investors will leverage their vast resources and expertise in numerous areas, including media, sponsorship, ticketing, hospitality, commercial rights management, licensing, and merchandising. They also plan to extend Alpine F1’s global reach, targeting new audiences, particularly in North America and Asia.
Otro Capital, the leading investor in this transformative agreement, specializes in private equity ventures related to sports, media, and entertainment. Founded by Alec Scheiner, a former president of the Dallas Cowboys and Cleveland Browns, and Mark Donnelly, a former executive at CAA Sports and Wasserman Media Group, Otro Capital boasts a deep well of experience and connections. Scheiner expressed his enthusiasm for this collaboration, stating, “These are best-in-class investors, athletes, entertainers, and entrepreneurs, and they are all committed to elevating the Alpine F1 team. We are excited to partner with Renault Group and Alpine F1’s management team to help them achieve their ambitious goals.”
Historically, Alpine F1, previously known as Renault F1, has enjoyed a storied legacy in Formula 1 dating back to 1977. With two constructors’ championships and two drivers’ championships under their belt, including legendary drivers like Alain Prost, Fernando Alonso, and Michael Schumacher, Alpine F1 continues to shine. Presently, it fields two exceptional drivers: Esteban Ocon, who claimed victory at the Hungarian Grand Prix in August 2023, and Alonso, who returned to the team after a two-year hiatus.
Laurent Rossi, the CEO of Alpine F1, extends a warm welcome to these new investors and conveys his unwavering confidence in the team’s future. “We are delighted to welcome Otro Capital and its group of strategic investors into our Formula 1 family,” Rossi said in a statement. “This partnership will enable us to accelerate our development and performance on and off the track, while enhancing our brand awareness and appeal worldwide.”
With this illustrious consortium of investors, Alpine F1 is poised to emerge as one of the most exhilarating and prosperous teams in Formula 1, setting the stage for an exciting chapter in the world of motorsports.
