Several billionaires are reportedly exploring investment opportunities in Formula One (F1) following the high-profile attendance of Jeff Bezos and Elon Musk at the Miami Grand Prix earlier this month.
According to a report by the Financial Times, people familiar with the matter said that the interest of wealthy individuals in F1 has increased after the recent ownership changes in the sport, which have brought in new teams and investors.
F1's parent company, Liberty Media, has been actively expanding the sport's reach and revenue streams through initiatives such as the introduction of new races, digital platforms, and cost controls. The efforts have attracted a growing number of high-net-worth individuals who see F1 as an attractive investment opportunity.
The report cited unnamed sources as saying that some of the potential investors have already held talks with F1's management and teams about various possibilities, including team ownership, sponsorships, and track ownership.
However, the sources noted that F1's ownership structure, which includes a complex web of stakeholders and interests, could pose challenges for any potential deal.
F1 is currently owned by Liberty Media, which holds a 35% stake, while the rest is owned by various entities, including private equity firms, institutional investors, and teams. The sport's revenue is derived mainly from broadcasting rights, race hosting fees, and sponsorships.
The Financial Times report also noted that the involvement of high-profile billionaires like Bezos and Musk could raise F1's profile and attract new fans and sponsors to the sport, which could benefit all stakeholders.
The Miami Grand Prix, which was held on May 8, was attended by both Bezos and Musk, who reportedly spent time in the paddock area and met with some of the F1 teams and executives. The event marked the first time that F1 had held a race in Miami, one of the world's largest markets for luxury goods and entertainment.
F1's next race will take place in Monaco on May 22, followed by the Azerbaijan Grand Prix on June 5.