New concerns have arisen regarding the future of Cadillac Formula 1’s majority ownership following reports that Mark Walter’s TWG Global is contemplating selling some of its shares, with Liverpool FC’s owner Fenway Sports Group among the parties expressing interest.
US billionaire Walter and his associated companies are currently under investigation by the U.S. Department of Justice. The inquiry is focused on whether Walter’s insurance firms, such as Delaware Life Insurance Company, Clear Spring Life and Annuity, misused policyholder funds in affiliated entities. Allegations claim these transactions, amounting to about $20 billion in loans and investments, were not sufficiently disclosed.
It is alleged some of those resources were directed towards enhancing Walter’s growing sports portfolio, which at one point encompassed the LA Dodgers baseball franchise, LA Lakers basketball team, a minority stake in Chelsea FC, and the LA Sparks from the WNBA. TWG Global has persistently denied any illicit conduct.
TWG Global, the parent entity of TWG Motorsports, holds a majority share in the Cadillac F1 team, along with its NASCAR, IndyCar, IMSA, and Australian Supercars teams. The Cadillac brand’s parent, General Motors, also has an undisclosed minority interest in the F1 outfit as it provides essential infrastructure and personnel, while concurrently developing future power units.
Potential Reasons Cadillac F1 Might Be Up for Sale
Walter has already begun the process of divesting the Lakers and his 12.8% stake in Chelsea, with the LA Sparks also on the market. Sportico, a sports business platform, has recently reported that Walter is searching to lessen his majority stake in the Cadillac F1 team, which he values at around $3 billion.
The Washington Post indicates that one of the interested entities is John Henry’s Fenway Sports Group, the proprietor of Liverpool FC and the Boston Red Sox. FSG recently divested 38% of its stake in Liverpool and now has a foothold in motorsport as a 50% stakeholder in the RFK Racing team within NASCAR.
Sergio Perez, Cadillac Racing
Photo by: James Sutton / Formula 1 / Formula Motorsport Ltd via Getty Images
Even though TWG Global initially rejected the notion of selling a part of its F1 operation, there are conceivable factors that could designate it as the subsequent asset to be sold should Walter need to replenish the involved related-party loans with new funding.
Walter’s collective, Guggenheim Baseball Partners, acquired the LA Dodgers for $2.15 billion in 2012 from bankruptcy proceedings.
Profitable local broadcasting rights and a surge in global interest and sponsorship revenues following the acquisition of Japanese superstar Shohei Ohtani have propelled the franchise to generate $1.1 billion in gross revenue by 2025, making it the first baseball organization to achieve such a milestone. This has positioned the Dodgers alongside the world’s elite sports franchises, like Real Madrid, FC Barcelona, and the NFL’s Dallas Cowboys.
With its estimated worth climbing to about $7.8 billion according to Forbes, especially after winning consecutive World Series titles in 2024 and 2025, the Dodgers team stands as a prized asset for Walter, likely the last premier sports property he will retain.
Conversely, the Cadillac F1 team finds itself in a far different circumstance, having just entered the racing series this year after a lengthy application process. After paying a $450 million anti-dilution charge to secure its place as the 11th expansion team, TWG Global and its collaborator General Motors have reportedly invested substantial funds exceeding $1 billion to develop the team, which encompasses cutting-edge headquarters located in Silverstone, UK, and Fishers, Indiana.
The early journey of Cadillac in F1 has been somewhat promising despite facing issues with reliability, suggesting that its path to becoming a competitive force within F1 will require a long-term commitment.
Valtteri Bottas, Cadillac Racing
Photo by: Alastair Staley / LAT Images via Getty Images
In the meantime, the surge in F1’s popularity alongside the introduction of a budget cap has resulted in a sharp rise in team valuations, enabling the top teams to now generate profits.
Combined with the limited availability of a closed 11-team framework, this franchise model has contributed to an inflated valuation of $3 billion for a currently underperforming team, although it possesses considerable infrastructure assets and the support of GM.
TWG Global has yet to respond to inquiries, while GM representatives chose not to comment on the current situation.
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– The Autosport.com Team
