Racing Point will become Aston Martin’s Formula 1 team by 2021 as part of a new investment agreement between the British manufacturer and Lawrence Stroll.
Following an Aston Martin board meeting Thursday evening, it was confirmed on Friday morning that a Stroll-led consortium purchased a 16.7% stake in the company for £ 182 million.
In filings detail the investment which were presented on the London Stock Exchange on Friday morning, it was made clear that ‘increased’ involvement in F1 for Aston Martin was considered essential.
The documents state that, within the framework of this “Aston Martin Lagonda, he entered into a legally binding contract under which the Racing Point F1 team will become the Aston Martin F1 work team with effect from the 2021 season”.
The text continued: “This agreement has an initial term of 10 years and Aston Martin Lagonda will receive an economic interest in the team.”
The deal will include sponsorship of Aston Martin from 2021 which will continue for a period of four years, which can be extended under certain conditions.
Before the re-branding of Racing Point, Aston Martin will see his title sponsorship with Red Bull until the end of this season, when the deal ends.
Red Bull confirmed in a separate statement that it had agreed to release Aston Martin from its F1 exclusivity clause.
“We thank Aston Martin for his support in the past four years, during which we have achieved 12 victories together, 50 podiums and six pole positions,” read the note.
“We wish Aston Martin employees and shareholders all the best for the future and our attention continues to work together throughout the 2020 season and end our partnership to the fullest.”
Although the relationship between Red Bull and Aston Martin will end in F1, it has also been confirmed that a separate agreement between the two companies involving the Valkyrie hypercar will continue until the cars are delivered.
Racing Point has Sergio Perez with a long-term contract, with Stroll’s son, Lance, who is preparing to stay on the pitch for the foreseeable future.
The team also has a long-term deal to make Mercedes customers’ engines work, and there have been some suggestions that could forge closer technical ties with the German manufacturer in the future.
While Stroll’s investment stems from some difficult commercial conditions for Aston Martin, the parties involved are optimistic about the deal they have concluded.
Walk said: “Upon completing the £ 500 million fundraiser, I look forward to working with Aston Martin Lagonda’s board and management team to review and improve every aspect of the operations and marketing of the company; continue to invest in the development of new models and technologies and start rebalancing production to prioritize demand over supply.
“My partners and I firmly believe that Aston Martin is one of the world’s major luxury car brands.
“I believe that this combination of capital and my experience in both the automotive industry and building highly successful global brands will mean that over time, we will realize the potential of Aston Martin Lagonda.”
Aston Martin CEO Andy Palmer said: “Stroll brings strong and proven track record in both the automotive and luxury brands in a broader way, which we believe will be a significant benefit to Aston Martin Lagonda.”
“We also announced plans to leverage a new automotive partnership with Racing Point to improve plan execution.
“I would like to thank Red Bull Racing, which we will continue to sponsor this year, for their collaboration and the support that allowed us to say it today.”