MILAN – – U.S. – based investment group MSP Sports Capital is taking a significant minority stake in McLaren Racing in a deal the Formula One team said would give them the tools to return to the top of the sports.
The long – term investment, announced on Sunday, is for an initial 15% holding rising to a maximum 33% by the end of 2022. McLaren said it values the British racing outfit at 560 million pounds ($740.5 million).
Under the deal, MSP will put 185 million pounds into the former world champions, who last won a race in 2021 but are still historically the sport’s second – most successful team, over a two – year period.
Luxury sportscar maker McLaren Automotive remains wholly owned by the McLaren Group, whose majority shareholder is Bahrain’s Mumtalakat holding company, and is not part of the transaction.
The consortium members include The Najafi Companies, a private investment firm, and UBS O’Connor, a hedge fund subsidiary of Swiss investment banking firm UBS.
MSP is headquartered in New York and the principals have a background as owners and investors in Major League Baseball and the National Basketball Association (NBA) among other venues.
Jahm Najafi will become a vice – chairman of McLaren Racing, while Jeff Moorad of MSP and Rodrigo Trelles Zabala of UBS O’Connor will join then McLaren Racing board.
McLaren Racing chief executive Zak Brown said the investment marked the start of ‘the next chapter’ and would allow the team to ‘turbocharge’ their efforts.
Paul Walsh, executive chairman of the McLaren Group, told a video conference that the new cash flow would not impact the debt level of McLaren directly.
‘We have got a number of activities in place where we will look to refinance some of our debt next year and attendant with that there could very well be some kind of equity raise’, he said.
‘What this (deal) does is mean that McLaren Group is not funding on a cash basis in Racing’.
MSP’s arrival increases North American interest in a sport whose commercial rights are held by U.S. – based Liberty Media.
Moorad, a former NASCAR team owner, said MSP had looked into acquiring Force India when that team, now Racing Point and owned by Canadian billionaire Lawrence Stroll, went into administration in 2018.
They also considered former champions Williams, whose sale to U.S. – based Dorilton Capital was announced in August.
Moorad said McLaren, who are switching to Mercedes engines next season with Australian Daniel Ricciardo joining from Renault, was ‘by far’ the first choice.
Najafi said Liberty’s stewardship of the sport, with a budget cap being introduced next year and major changes in 2022 to level the playing field and put Formula One on a more sustainable footing, provided investor confidence.
‘We believe that Liberty’s business plan of creating more franchise – like values on the teams are going to flow in part from the cost cap’, said Moorad.
The Saudi – led coalition fighting Houthi forces in Yemen said on Tuesday it had destroyed an explosive drone fired towards Khamis Mushait in the south of Saudi Arabia. A military spokesman for the Iran – aligned Houthi group then said they had fired a drone at and hit Abha International Airpot, which is near … More Saudi – Led Coalition Says It Intercepts Houthi Drone Fired At Southern Saudi Arabia
China’s President Xi Jinping told Saudi Arabia’s Crown Prince Mohammed bin Salman on Tuesday that Beijing was willing to push its strategic partnership with Riyadh ‘to a new level’, the official Chinese Xinhua news agency reported. In a phone call, the two leaders discussed boosting cooperation in energy, trade and technology, Xinhua added. China’s crude … More Saudi Arabia’s Crown Prince, China’s Xi Discuss Cooperation In Phone Call
Saudi Arabia’s King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman have donated a total of $7.9 million (SR 30 million) to charity through the Kingdom’s Ehsan Platform, the Saudi Press Agency (SPA) reported on Friday. King Salman donated $5.3 million (SR20 million) for charitable and non – profitable works, while the Crown Prince contributed … More Saudi Arabia’s King Salman, Crown Prince Donate Total of $7.9 Mln To Charity
King Salman on Thursday appointed Prince Mishaal bin Majed bin Abdulaziz Al Saud as adviser to the king, with the rank of minister, the Saudi Press Agency (SPA) reported. Prince Mishaal has been governor of Jeddah since 1997 and a member of the Allegiance Council since 2007. He is president of the governing council of … More Prince Mishaal Bin Majed Appointed Adviser To The King Salman
The Unites States on Thursday imposed a boar array of sanctions on Russia to punish it for election interference, cyber – hacking, bullying Ukraine and other ‘malign’ acts. The measures blacklisted Russian companies, expelled Russian diplomats and placed limits on the Russian sovereign debt market in steps sure to anger Moscow. Among the actions, President … More U.S. Imposes Wide Array Of Sanctions On Russia For ‘Malign’ Actions
Britain’s Queen Elizabeth return to royal duties on Tuesday, four days after the death of her husband, Prince Philip, in an event to mark the retirement of her household’s most senior official, PA Media reported. The queen hosted a ceremony as the Earl Peel stepped down as Lord Chamberlain, the report added. Philip, who has … More Queen Elizabeth Returns To Royal Duties Four Days After Her Husband’s Death – PM Media
The Arab coalition destroyed a Houthi explosive – laden drone launched toward Saudi Arabia on Wednesday, Al – Ekhbariya reported. The drone targeting Jazan is the latest in a long line of attacks against the Kingdom by the Iran – back Houthi militia. The coalition said the attack is a continuation of the Houthi’s systematic … More Arab Coalition Destroys Houthi Drone Targeting Saudi Arabia
Saudi Arabia’s King Abdulaziz Center for World Culture (Ithra) is celebrating the holy month of Ramadan with a wide selection of cultural events and interactive activities. Ithra is offering visitors a chance to take part in events focused on national traditions and Saudi Arabian heritage, as well as different interactive workshops. The centre’s Ramadan program also includes a collection … More Saudi Arabia’s Ithra Celebrates Ramadan With Cultural Events, Activities
Reuters News has name one of its top editors, Alessandra Galloni, as it its next editor-in-chief, the first woman to lead the global – spanning news agency in its 170-year history. A native of Rome, Galloni, 47, will replace Stephen J. Adler, who is retiring this month after leading the newsroom for the past decade. … More Reuters Names Alessandra Galloni As Its Next Editor – In – Chief
Prince Philip, the husband of Queen Elizabeth who played a leading figure in the British royal family for almost seven decades, has died aged 99, Buckingham Palace said on Friday. The Duke of Edniburgh, as he was been y his wife’s side through her 69-year reign, the longest in British history, during which time he … More Britain’s Prince Philip Has Died
Former U.S. Secretary of State Mike Pompeo will join Fox News Media as a contributor, the news network controlled by media baron Rupert Murdoch said on Thursday. Pompeo is the latest former Trump administration official to join the network. Other notable names include former White House secretary Kayleigh McEnany and Trump’s top economic adviser Larry … More Former Secretary Of State Pompeo To Join Fox News Media
Saudi Arabia’s Crown Prince Mohammed bin Salman announced the opening of the Sakaka IPP PV power plat, the Kingdom’s first renewable energy project, the Saudi Press Agency (SPA) reported on Thursday. The launch of the Sakaka IPP PV and the signing power purchase agreements (PPA) for seven new projects are the result of King Salman’s … More Saudi Arabia’s Crown Prince Announces Opening Of Sakaka Power Plant
This year’s French Open has been postponed by a week due to the COVID-19 pandemic and will begin on May 30, the French Tennis Federation (FFT) said on Thursday. The claycourt Grand Slam, which was postponed by four months last year and took place in front of limited crowds, will finish on June 13, two … More Tennis – French Open Postponed To May 30 Amid COVID-19 Crisis
Saudi Arabia’s Crown Prince Mohammed bin Salman launched the design vision for the ‘Journey Through Time’ scheme, with the aim of responsible and sustainable revitalization and rehabilitation of the main archaeological area in Saudi Arabia’s AlUla in a unique cultural and natural environment. AlUla is in the northwest of the Kingdom, where the project is … More Saudi Crown Prince Launches AlUla’s Design Vision ‘A Journey Through Time’
Former Italian Prime Minister Silvio Berlusconi has been in has been in hospital since Tuesday afternoon for check-ups, two sources from his Forza Italy party said on Wednesday. One of the source said the 84-year-old media tycoon went to the San Raffaele hospital in Milan for follow-up tests after contracting the new coronavirus in September … More Former Italian PM Berlusconi In Hospital Since Tuesday – Sources