The Audi Formula 1 team is set to receive a significant financial boost with the Qatar sovereign wealth fund expressing interest in acquiring a minority stake. This development is expected to bring several advantages to the Ingolstadt-based car manufacturer.
The global popularity of Formula 1 continues to soar, with the sport experiencing a boom due to cost caps, increased sponsorship, and higher revenues from broadcasting rights. Teams are now transitioning from substantial investments to potential profitability, marking a significant shift in the financial landscape of the sport.
This shift has led to a notable increase in the value of racing teams, with even smaller teams like Haas are now valued at over a billion euros. The exclusivity of the sport, with its limited number of teams, suggests that these valuations could continue to climb.
Recognising the potential for growth, some teams have begun to capitalise on their development by selling shares. For example, Alpine announced in June 2023 that it had sold 24% of its team to an investor group that includes celebrities such as actor Ryan Reynolds and athletes Rory McIlroy, Anthony Joshua, Patrick Mahomes, and Travis Kelce.
Similarly, reports from Sky UK in September 2023 indicated that US investment firms HPS and Accel were planning to invest in the Aston Martin Formula 1 team, with a deal potentially valuing the team at 1.8 billion euros.
Audi, having recently completed the acquisition of the Sauber team earlier this year, is now in a position to capitalise on the rising value of its Formula 1 asset. The team’s value has already increased since the acquisition, presenting Audi with an opportunity to generate substantial revenue from the sale of a minority stake.
The investment from Qatar’s sovereign wealth fund is expected to be utilised to further develop the team’s facilities in Hinwil, Switzerland. This includes expanding the team’s infrastructure and workforce, without tapping into Audi’s own reserves.
While Audi has not confirmed the sale of shares in its Formula 1 team, the company has stated that it does not engage in speculation and that the team is not for sale. However, this does not rule out the possibility of selling a minority stake. As reported by Auto, Motor und Sport, the negotiations have been ongoing for some time and are not a reaction to the current economic climate.
Audi’s commitment to Formula 1 remains unwavering. Gernot Döllner, the managing director, reaffirmed the team’s long-term strategy and its alignment with Audi’s objectives during the race in Monza in September. He emphasised the thorough preparation and reevaluation that preceded the decision to enter Formula 1, highlighting the team’s conviction that the sport is a perfect fit for Audi’s strategy. According to Auto, Motor und Sport, Döllner stated, “The decision was well-prepared two and a half years ago and re-evaluated last year. We are firmly convinced that Formula 1 and Audi are a perfect match. It is in line with our strategy.”
The partnership with Qatar could also open up sponsorship opportunities for Audi, given Qatar Airways’ existing presence as a series partner in Formula 1.
