Asian billionaire expresses interest in forming consortium and purchasing F1 team

Liberty Media has paved the way for Formula 1 to grow immensely in terms of popularity in recent years.

Opening its door to the Netflix docuseries Drive to Survive undeniably generated great interest and roped in many new fans to the sport.

However, it is FIA’s decision to introduce a budget cap that has made the pinnacle of motorsport highly attractive for new teams.

Hong Kong-based billionaire Calvin Lo is the latest to express an interest in investing in the sport by the means of purchasing a team.

Most recently, Williams experienced almost a complete overhaul after it was sold to American investment firm Dorilton Capital in 2020.

Lo is taking a close look at teams he can invest in and has spoken about how there are plenty of other billionaires doing the same across Asia.

The business tycoon can envisage a few of these billionaires to form an Asian consortium and together invest in a team.

You’d think this would be seen as positive news by Zhou Guanyu and Yuki Tsunoda, as well as other aspiring Asian rookies.

“A lot of people, me included, are still looking to other teams, other opportunities, because…there are consistently good teams but they are not able to come up with the right car,” Lo said.

“In Asia right now there is a lot of liquidity sitting around, it’s mind-blowing. I wouldn’t be surprised if the next news you hear…is maybe some consortium in Asia investing into some other teams.”

How the budget cap has made F1 more lucrative

F1 teams 2022. Credit:

Far from the days of only certain teams dominating the sport as a result of having deeper pockets, the budget cap has done well to make the playing field relatively more competitive.

Without its introduction, it was far tougher for new entrants to believe they had a fair chance of success.

Theoretically, the budget cap means that the team that optimises its resources will now stand the best chance of finding success as opposed to the team that can spend the most.

It is worth understanding that investors may be more keen to invest in an existing team rather than field a new one altogether.

This is due to the fact that a new entrant needs to pay $200 million to compensate existing teams for receiving a smaller chunk of the revenue made.

Michael Andretti is also finding this out the hard way with his proposed Andretti Global team project, with existing teams making his life tough.

Read more: FIA clamps down on ‘grey area’ exploited by Red Bull; Mercedes confident of toppling Red Bull after summer break

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