RedBird Capital, the company that owns AC Milan, has partnered with Otro Capital and Hollywood actors Ryan Reynolds and Rob McElhenney to create a fund aimed at acquiring a 24% stake in Alpine Racing for 200 million euros. This move marks RedBird Capital’s diversification of its portfolio in the sports sector.
Alpine Racing, a Formula 1 team that boasts drivers Esteban Ocon and Pierre Gasly, is currently valued at around 900 million euros. As part of the agreement, Alec Scheiner, co-founder and partner of Otro Capital, will join the team as an administrator.
Laurent Rossi, CEO of Alpine, expressed his excitement about the partnership, stating that it is an important step to improve the team’s performance at all levels. He highlighted the expertise of Otro Capital, RedBird Capital Partners, and Maximum Effort Investments in the sports industry, particularly in driving media and marketing strategies to support long-term sports performance.
Alpine Racing has a strategic plan called “Mountain Climber,” which aims to compete for the Formula 1 championship within the next one hundred races. The incremental revenue generated from this partnership will be reinvested in the team to further accelerate their Mountain Climber plan.
This deal expands RedBird Capital’s presence in the sports sector. In May 2022, the US fund acquired AC Milan for $1.2 billion and later became a shareholder in The New York Yankees and Main Street Advisors. RedBird Capital also holds a stake in Fenway Sports Group, the owner of Liverpool, and acquired Toulouse from Ligue-2 in July 2020. Additionally, the investment fund is a shareholder of OneTeam Partners, responsible for marketing elite athletes’ assets, and has entered the capital of the XFL, an American football competition.
In other Formula 1 news, Bahrain’s sovereign wealth fund, Mumtalakat, recently acquired the stake previously owned by the Public Investment Fund (PIF) and Ares Management in the McLaren Formula 1 team. The Bahraini fund invested 466 million euros in this move.
RedBird Capital’s partnership with Otro Capital, Ryan Reynolds, and Rob McElhenney to acquire a stake in Alpine Racing demonstrates the company’s commitment to expanding its presence in the sports industry and further diversifying its portfolio.
How does RedBird Capital’s acquisition of a stake in Alpine Racing align with their strategy of investing in sports teams and related businesses?
Ued at around 800 million euros. The acquisition of a 24% stake by RedBird Capital and its partners will enhance their presence in the motorsport industry.
The partnership between RedBird Capital, Otro Capital, Ryan Reynolds, and Rob McElhenney highlights the growing trend of celebrities investing in sports teams and franchises. Reynolds and McElhenney are known for their entrepreneurial ventures and have expressed a keen interest in the sports sector.
By acquiring a stake in Alpine Racing, the investors are looking to capitalize on the global popularity and significant revenue potential of Formula 1. Alpine Racing, formerly known as Renault, has a rich history in the sport and has recently shown improved performance on the track.
RedBird Capital’s move to diversify its portfolio in the sports sector is in line with its strategy of investing in sports teams and related businesses. The company currently owns AC Milan, one of the most successful football clubs in the world. This new partnership with Otro Capital and the involvement of Reynolds and McElhenney demonstrate RedBird Capital’s commitment to expanding its foothold in the industry.
The 200 million euros investment will provide Alpine Racing with a significant capital infusion, which could be utilized to further develop its racing program, improve car performance, and attract high-profile sponsors. This injection of funds could potentially elevate the team’s competitiveness within the highly competitive Formula 1 landscape.
Overall, the partnership between RedBird Capital, Otro Capital, Ryan Reynolds, and Rob McElhenney represents a strategic move to diversify investments in the sports sector by acquiring a stake in Alpine Racing. As Formula 1 continues to capture global attention and generate substantial revenues, this investment could prove to be a lucrative endeavor for all parties involved.
