Has the Drive to Survive effect been at play as Hollywood backers come knocking?
Hollywood has its eye on the F1 with a group of investors gaining a 24% equity stake in the former Renault F1 racing team. Maximum Effort Investments which includes backers such as actor Ryan Reynolds focuses on unlocking value through the power of storytelling and says they see tremendous untapped potential in Alpine Racing. Hollywood film anyone?
Pierre Gasly (FRA) Alpine F1 Team A523. Australian Grand Prix, Sunday 2nd April 2023. Albert Park, Melbourne, Australia.
Renault and Alpine F1 announced the €200 million ($A326 million) investment from a group of investors which include Otro Capital, RedBird Capital Partners, and Maximum Effort Investments. This deal values Alpine Racing Ltd at around $900 million and Renault hopes that this will help accelerate the French sports car maker’s growth ambitions in F1.
BWT Alpine F1 Team are currently fifth in the FIA Formula One World Championship which is helmed by drivers Esteban Ocon and Pierre Gasly. The team have been on the search for investments to help close the gap to F1’s leading teams including RedBull Racing and Mercedes-AMG F1.
“Star in a reasonably priced car”
Ryan Reynolds with the Stig
Alpine F1 are said to benefit from the Investor Group’s collective expertise and track record in the sports industry which includes media, sponsorship, ticketing, hospitality, commercial rights management, licensing, and merchandising strategies to unlock incremental value creation and new growth levers.
Investor Maximum Effort Investments is best known for its Hollywood and celebrity backers including Ryan Reynolds and Michael B. Jordan who have put their money into sporting entities such as NFL side the Dallas Cowboys, French football club Toulouse FC and English football team Wrexham AFC. Reynolds bought Wrexham in November 2020 along with fellow actor and co-owner Rob McElhenney and has overseen the club’s rejuvenation that saw it promoted back to the English Football League after 15 years.
Copyright: Batchelor / XPB Images
Luca de Meo, CEO of Renault Group said that Formula 1 and Alpine are strategic assets for the Renault Group and this latest investment boost is in line with their transformation plan. “Over the past two years, we have re-ignited Alpine, capitalising on its iconic A110 sports coupé, boosting it by entering Formula 1, where it aims to become a championship contender. This partnership will accelerate Alpine F1 development by diversifying revenue drivers and increasing brand value.”
Outside of F1, Alpine will launch seven all-new electric cars from 2024 until 2030 as part of huge expansion plans that will see the French brand move from a niche sports car maker to a premium global brand.
Keyword: Hollywood star Ryan Reynolds adds Alpine F1 Team to his investments