Liverpool owners in talks to buy majority stake in Cadillac F1 team

Fenway Sports Group has emerged as one of the parties interested in buying a majority stake in the Cadillac Formula 1 team. The development follows reports that billionaire investor Mark Walter is exploring a sale of his controlling stake in Cadillac, with the operation valued at an eye-watering £2.24 billion. The sudden shift in posture comes as Walter reshapes his sprawling sports holdings amid federal investigations, upending assumptions just months after his investment vehicle insisted the project was locked in for the long term.

The prospective deal arrives via reports from The Guardian and The Wall Street Journal, noting that Fenway Sports Group is among multiple interested investors holding discussions. Walter controls Cadillac through TWG Global in a high-profile joint venture with automotive giant General Motors. Yet the rapid pivot away from ownership mirrors a broader liquidation pattern across Walter's portfolio. Over the summer, TWG Global sold its controlling stake in the NBA's Los Angeles Lakers and a 13% stake in Chelsea FC this summer.

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Federal scrutiny underpins the strategic retreat. According to Bloomberg News, Walter is currently under investigation by the US Department of Justice and the Securities and Exchange Commission over alleged fraud involving the management of funds at his insurance companies Delaware Life, Clear Spring and EquiTrust. Marcin Budkowski, recently appointed to lead Cadillac's F1 project, now confronts a cloud of uncertainty. He has insisted that TWG's financial status does not affect the team's development, pointing to ongoing infrastructure investments and recruitment efforts.

For Fenway Sports Group, headed by principal owner John Henry, a successful acquisition would deepen an already substantial footprint in professional athletics. FSG already holds a 50% stake in the RFK Racing NASCAR team. FSG has held talks about buying a majority stake in Cadillac after recently selling about 38% of Liverpool to a consortium including Amazon founder Jeff Bezos.

The staggering valuation attached to Cadillac highlights how fiercely coveted grid slots have become under modern financial regulations, tightening cost caps, and surging North American interest catalyzed by series like Netflix's Drive to Survive. Yet the team's on-track reality stands in sharp contrast to its commercial allure. Cadillac currently sits bottom of the constructors’ championship and is yet to score a point in its debut F1 season. The team’s best result was 13th place, achieved by Valtteri Bottas at the Chinese Grand Prix. Meanwhile, American driver Colton Herta has been closing in on the superlicence points requirement needed to contend for a seat.

Market observers note that no agreement has been reached at this stage, with discussions also taking place with other interested investors. While Walter's camp previously issued definitive denials regarding any exit from motorsport in August, the reality of managing multi-billion-dollar liabilities has altered the landscape. As the Major League Baseball owners prepare to gather in New York later this month, opportunities for face-to-face dialogues between key sports magnates loom on the horizon.

What to Watch Next

• The progression of talks between Fenway Sports Group, TWG Global, and rival bidders as the evaluation window continues.
• Colton Herta's final practice outings and superlicence qualification bids at upcoming Grand Prix weekends.
• Developments in the federal investigations involving Mark Walter's insurance entities and their secondary impact on sports governance.