FSG in Talks to Buy Majority Stake in Cadillac F1 Team for Over £2bn

Fenway Sports Group has held talks about buying a majority stake in the Cadillac Formula One team for more than £2bn, according to a source with knowledge of the plans. The talks come as Cadillac's co-owner Mark Walter sells off sporting assets while facing federal investigations into his insurance businesses.

The Guardian has learned that TWG Global, Walter's holding company, has discussed a sale with several interested parties, including FSG. TWG has denied that a sale is imminent.

Who is selling, and why?

Cadillac entered Formula One this year as a joint venture between General Motors and Walter's TWG Global. The size of each partner's stake has never been made public. Sportico has previously reported that Walter values his Cadillac shareholding at about £2.24bn.

Walter is under investigation by the US Department of Justice and the Securities and Exchange Commission over alleged fraud in the management of funds at three of his insurance companies: Delaware Life, Clear Spring and EquiTrust. TWG has said "there has been no fraud".

The 66-year-old has been reducing his sports portfolio this summer. TWG sold its controlling interest in the NBA's Los Angeles Lakers and a 13% stake in Chelsea, and is also looking to sell the Los Angeles Sparks, its WNBA team. Walter remains controlling owner of the Los Angeles Dodgers and insists the Major League Baseball franchise will not be sold.

What would Cadillac add to FSG's portfolio?

FSG's sporting investments include Liverpool, majority stakes in the Boston Red Sox and the NHL's Pittsburgh Penguins, and a 50% stake in the Nascar team RFK Racing. The source said FSG has been attracted to F1 by the sport's remarkable growth over the last decade, particularly in the US market.

The numbers explain the appeal. F1's annual revenue has more than doubled to $4bn (£3bn) since Liberty Media bought the sport in 2017, and the value of its TV rights continues to rise. A new team entry is now an asset class of its own, comparable in headline price to a top-tier European football club.

FSG has form on undervalued acquisitions. It paid £300m for Liverpool in 2010. The club is now valued at £5.5bn after this summer's partial sale.

What does this mean for Liverpool?

Any Cadillac purchase could have implications for FSG's position at Anfield. This summer FSG sold 38% of Liverpool to a consortium that includes Amazon founder Jeff Bezos and Facebook co-founder Eduardo Saverin. That group has secured an option to complete a full takeover before August 2027.

That structure gives FSG flexibility. It can bank a large profit, exit fully by 2027, or stay and redeploy capital into Formula One. The source disclosed that FSG is looking at other sporting investments beyond football and US franchises.

FSG declined to comment on its investment plans.

How is Cadillac performing on the track?

The sporting case is less polished than the financial one. Cadillac sits bottom of the constructors' championship in its debut season and has yet to score a point.

That has not dimmed buyer interest in a sport where franchise values keep climbing. If FSG completes a deal above £2bn, it would rank among the largest single investments in motorsport history and signal that American institutional sports capital now treats F1 teams as core assets rather than side bets.