Alpine Racing Ltd, the Formula 1 team that emerged from Renault’s rebranding efforts in 2021, caused a stir on the internet with the confirmation of a €200m investment. The group behind the investment includes prominent Hollywood actors Ryan Reynolds, Michael B. Jordan, and Rob McElhenney, who collectively acquired a 24% stake in Alpine Racing Ltd.
This significant investment has sparked discussions about Renault’s intentions regarding their ownership of the team. Will they be willing to reduce their stake in Alpine? Sky F1 commentator David Croft believes that while Renault may consider scaling back their involvement, they also see this as an opportunity to strengthen the Alpine brand through increased investment.
Croft, in a conversation with his Sky F1 colleague Craig Slater, suggested that the deal could be a combination of injecting glamour into the Alpine team and Renault potentially diluting their stake. He noted that Formula 1 is currently experiencing a boom, with increased interest, rising ticket sales, and growing viewership worldwide. This makes the sport an attractive investment opportunity.
Renault, while known for its involvement in Formula 1, would welcome external support to share the team’s financial burden and raise awareness of the Alpine name, which is synonymous with sports cars but may not be widely recognized globally.
Croft also highlighted the estimated value of the Alpine team, which stands at around €900 million following this investment. He contrasted this figure with other Formula 1 teams, emphasizing how team valuations have soared in recent years due to the sport’s surging popularity. For instance, he mentioned that Ferrari, with its rich F1 heritage, is likely valued at over three times that of Alpine, while Mercedes and Red Bull are valued at around two billion and two-and-a-half billion euros, respectively.
The commentator expressed his fascination with the Alpine investment, suggesting that those who have made wise investments in Formula 1 teams could be sitting on a potential goldmine. The sport’s allure from a business perspective is evident, and it underscores the team’s argument that the required €600 million bond for new entrants is not an insignificant sum. The worth of established teams far exceeds that figure.
Alpine has been making steady progress on the Formula 1 grid, achieving their third podium finish with Esteban Ocon’s third-place result at the Monaco Grand Prix. Ocon secured the team’s sole victory to date in the series at the Hungaroring in 2021. As the team continues to improve, the recent investment deal and Renault’s potential strategic moves are sure to keep fans and industry observers intrigued.
