As media companies and big tech companies compete for sports viewership, investors have begun to look beyond traditional avenues at teams and sports that received little attention in the United States just a few years ago.
The latest deal for a fifth-rate Formula 1 team owned by one of France’s largest car companies involves actor Ryan Reynolds and his investment firm Maximum Effort Investments; and private equity firm RedBird Capital Partners and its investment partner Otro Capital. You will acquire a 24 percent stake in Renault Group’s Alpine F1 Team. The investors are paying around 200 million euros ($218 million) for the stake and value the team at around $900 million.
Formula 1 has grown in popularity in the United States since its sale to Liberty Media in 2017. The Netflix documentary Drive to Survive drew new attention to the sport, and viewership skyrocketed as the sport expanded to cities like Las Vegas and Miami.
For Renault, the Alpine deal aims to increase the visibility of its Alpine electric vehicle line as the company aims to have more than half of its sales come from electric vehicles by 2030. In a press release, Renault boss Luca de Meo announced the deal would increase the value of the Alpine F1 brand.
Laurent Rossi, Alpine’s chief executive officer, said in the press release that the company will invest additional money in the team as it aims to climb the rankings.
The Alpine deal came about in the last 18 months, Alec Scheiner, head of Otro Capital, said in an interview. As part of the agreement, he will join Alpine’s board of directors.
“They looked at us like, ‘Maybe you can help us in the industries that you’ve been successful in in the US — ticketing, hospitality, sponsorship, licensing, merchandising, content,'” said Mr. Scheiner.
Mr. Scheiner, a former partner at RedBird Capital, served as vice president of the NFL’s Dallas Cowboys and later managed operations for the Cleveland Browns. The deal is the first for Otro, which has emerged from RedBird to raise money solely for sports deals.
RedBird, founded by Gerry Cardinale, has acquired interests in Fenway Sports Group, the Yankees’ YES Network, Italian soccer team AC Milan and the production company founded by Ben Affleck and Matt Damon. In 2021, the company paid $37.5 million for a stake in Rajasthan Royals, the Indian Premier League cricket team. Last year, Indian Cricket broadcasting rights were sold at a record price, cementing the league’s position among the world’s most valuable sports properties.
Maximum Effort, which has also invested in Aviation Gin and Wales football team Wrexham AFC, did not disclose the size of its investment. Other investors include actor Michael B. Jordan and Rob McElhenney, co-owner of Wrexham AFC.