After investing in football, the Hollywood trio of Ryan Reynolds, Michael B. Jordan and Rob McElhenney have decided to expand their sports portfolio to the racing world of Formula One.
Alpine gets a massive boost.
On Monday, Renault Group (Alpine’s parent company) announced that Alpine had secured a €200 million ($218 million) investment from investors, including Otro Capital, RedBird Capital Partners and Maximum Effort Investments. The group has acquired a 24% stake in the team in return for the investment.
The co-founder of Otro Capital, Alec Scheiner, will join the Alpine team’s board of directors. Also, this investment takes the value of the team to around €900 million.
It is part of an ambitious program at Alpine known as the “Mountain Climber” plan, intending to fight for championships within 100 races. That plan’s starting date began in 2022. This investment will help them in infrastructure investment as they look to modernise and expand their facilities.
Alpine, driven by Pierre Gasly and Esteban Ocon, currently stands fifth in the ten-team constructor’s championship. The team was fourth in the constructors’ standings last year and had been struggling in its goal to close the gap on top teams like Red Bull, Mercedes, Scuderia Ferrari and Aston Martin this season.
Alpine last won the Formula One Constructor’s World Championships in 2005 and 2006 as Renault and in 1995 as Benetton. The Renault F1 team was rebranded to Alpine in 2021. Since then, they have managed one win and three podium finishes.
An Investment for the United States
This investment will also help F1 to grow in popularity in the United States. Formula One considers America a country with massive growth potential for the sport. After the Covid-19 pandemic, it is the fastest-growing sport in the United States.
This year, the United States will host three Formula One grand prix. F1 was in Miami in May and will return to Circuit of the Americas (COTA) in October. But the biggest hype is around the third race that will be taking place in November in Las Vegas for the first time.
Previous ownership experience
Renault said the investor’s previous experience in sporting franchises would benefit the team. Otro Capital and RedBird Capital Partners own the third-largest stake in Fenway Sports Group, owner of Premier League team Liverpool FC and the Boston Red Sox baseball team. They also own Serie A side AC Milan and Ligue 1 team Toulouse FC. Meanwhile, Maximum Effort Investments owns Wrexham A.F.C.
In November 2020, Ryan Reynolds and Rob McElhenney bought the oldest Welsh football club Wrexham for $2.5 million. Wrexham received the international spotlight and gained supporters because of its owners. They also secured promotion to the fourth tier of English football this season for the first time in 15 years.
