F1: Hong Kong Billionaire to invest more in F1, more Billionaires coming (Update)
American’s instead of the Brits now own F1, and they have put the entire series on sound financial footing, to the point that large sponsors and billionaires want in.
A budget cap, Netflix Drive to Survive, and races that pay a bigger sanction fee has the business of F1 lucrative with a growing sponsor and fan base.
The budget cap shepherded into place by owners Liberty Media creates a genuine chance for all Formula 1 teams to succeed, an appealing prospect for investors
There was a time when the top teams in Formula 1 could spend freely and did so to a level far beyond the rest of the grid, resulting in a series of ‘haves’ and ‘have-nots.’
But with a budget cap now in place, it means the team that does the best job, rather than spends the most, will be rewarded with success.
Hence, it comes as no surprise to hear plenty of investors are considering putting cash into Formula 1.
Investing into an existing team is the more likely route at this stage for investors, since entering a new team requires the payment of $200m to compensate the other teams for receiving a smaller chunk of the revenue.
And as Michael Andretti is currently finding out with his prospective Andretti Global team, it can be very difficult to convince teams to budge and welcome a new entrant in. It’s a European-Closed Door Club, one that American Series owner Liberty Media needs to crush.
F1 is on fire since American company Liberty Media bought it. Money is pouring in from everywhere, and TV ratings are booming.
Hong Kong-based billionaire Calvin Lo is considering putting more money into Formula One following his connection with F1 team Williams, Lo told Reuters in an interview, adding other Asian investors were also interested in investing in the sport.
Lo, chief executive of insurance broker RE Lee International, confirmed he has “some sort of exposure” to Williams, following the U.S.-based private investment firm Dorilton Capital’s purchase of the team in 2020. He declined to give more detail, citing non-disclosure agreements.
Dorilton Capital makes investments for Lo, according to media reports.
“A lot of people, me included, are still looking to other teams, other opportunities, because…there are consistently good teams but they are not able to come up with the right car,” Lo said.
“In Asia right now, there is a lot of liquidity sitting around, it’s mind-blowing. I wouldn’t be surprised if the next news you hear…is maybe some consortium in Asia investing into some other teams.”
Lo did not name the teams attracting investor interest. Reuters