Fresh doubts surround Cadillac Formula 1's majority ownership as Mark Walter's TWG Global reportedly seeks to offload shares amid a U.S. Department of Justice investigation into $20 billion in allegedly undisclosed related-party loans and investments. The probe examines whether Walter's insurance companies improperly invested policyholder funds in affiliated businesses, including his sports empire. TWG Global denies wrongdoing.
Walter has already moved to sell the LA Lakers and his 12.8% stake in Chelsea, with the LA Sparks also up for sale. Sportico reports Walter is now looking to sell part of his majority stake in the Cadillac F1 team, valued at around $3 billion. The Washington Post identifies John Henry's Fenway Sports Group (FSG) — owner of Liverpool FC and the Boston Red Sox — as an interested party. FSG recently sold 38% of its Liverpool stake and holds a 50% share in NASCAR's RFK Racing.
The Cadillac F1 team, which paid a $450 million anti-dilution fee to join as an 11th team this year, has reportedly seen over $1 billion invested in facilities at Silverstone and Fishers, Indiana. While showing respectable early performance, reliability issues persist. General Motors holds a minority share and supplies infrastructure and future power units. F1's popularity boom and budget cap have driven team valuations higher, making the Cadillac stake an attractive asset for investors like FSG.
Source: Autosport F1 News · Summarized by HeadlinesBriefing