McLaren Group Limited’s owners — Bahrain’s sovereign wealth fund Mumtalakat and Abu Dhabi-based CYVN Holdings — will take full control of the racing team, the sources said, speaking on condition of anonymity to discuss the deal. They will buy out the 30% stake held by MSP Sports Capital and other minority shareholders who invested in McLaren in 2020 at a valuation of £560 million. Walmart Inc. heir Rob Walton also invested in that round, according to Bloomberg. McLaren Racing and MSP declined to comment. Sky News was first to report the stake sale.
It is another record valuation for a Formula 1 team amid growing interest in the sport from fans and investors. For example, Aston Martin is in talks to sell a stake, based on a valuation of around £2.4 billion, despite being well behind the leaders in the championship.
Formula 1’s popularity has skyrocketed under current owner Liberty Media, helped in part by the success of the behind-the-scenes Netflix series Formula 1: Drive to Survive, which has attracted new audiences, particularly in the US. The recent release of F1: The Movie, starring Brad Pitt, has also boosted interest in the sport.
Under CEO Zak Brown, McLaren Racing won the constructors’ championship for the first time in 26 years last year. The team’s drivers, Oscar Piastre and Lando Norris, are now the two main contenders for the drivers’ championship, which could be McLaren’s first victory since 2008.
While the F1 team is on the rise, sports car manufacturer McLaren Automotive Ltd., part of the group, has a lot of work to do. CYVN intends to overcome years of losses at the loss-making automaker. In recent years, McLaren has repeatedly appealed to shareholders for financial support, sold part of its historic car collection, spun off its advanced technology division and carried out a sale and leaseback deal for its headquarters in Woking.
Source: Bloomberg