Ryan Reynolds, the renowned Hollywood star, is expanding his business ventures into the realm of sports.
His investment firm, Maximum Effort Investments, along with notable actors Rob McElhenney and Michael B. Jordan, has joined forces with RedBird Capital Partners and Otro Capital to acquire a 24 percent stake in the Alpine Formula 1 Race Team. The consortium has agreed to pay $218 million to Renault Group, the current owner of the team, valuing it at around $900 million.
This deal follows a growing trend of skyrocketing valuations for sports teams and rights, encompassing both mainstream and niche sports. Traditional media companies and tech giants are fervently competing for the lucrative live event market, recognizing the value of captivating audiences.
According to the partners, this agreement will facilitate the acceleration of Alpine Racing’s growth plans and increase its visibility. Formula 1 has experienced a significant surge in popularity in the United States, largely due to the success of Netflix’s documentary series “Drive to Survive,” which has spanned five seasons and provides an in-depth look into the sport, both on and off the racetrack.
Laurent Rossi, CEO of Alpine, emphasized the significance of this collaboration, stating, “This association is an important step to enhance our performance at all levels. Otro Capital, RedBird Capital Partners and Maximum Effort Investments, as international players with strong track record in the sports industry, will bring their recognized expertise to boost our media and marketing strategy, essential to support our sporting performance over the long term.”