News Summary
- Liverpool owners Fenway Sports Group have held talks about buying a majority stake in Cadillac’s Formula 1 team, according to The Guardian.
- The potential transaction could exceed £2 billion, with Mark Walter reportedly seeking a valuation of at least $3 billion for his Cadillac interests.
- FSG is one of several interested investors, and no agreement has been announced as Walter reshapes his sports portfolio amid US federal investigations.
Fenway Sports Group (FSG), the American investment group that owns Liverpool FC, has held discussions over acquiring a majority stake in Cadillac’s Formula 1 team in a deal potentially worth more than £2 billion. According to The Guardian on Wednesday (November 4), the group is among several interested parties exploring an investment in the American outfit, whose controlling shareholder, billionaire Mark Walter, is facing scrutiny over financial transactions involving his insurance businesses.
The negotiations represent a significant development following reports that Walter was seeking buyers for Cadillac, despite his company, TWG Global, previously denying plans to sell its motorsport operations.
Liverpool owners emerge as potential Cadillac buyers
FSG has become one of the most prominent names linked with Cadillac’s possible change of ownership.
The American group has built an extensive sports investment portfolio, including Liverpool, Major League Baseball’s Boston Red Sox and the Pittsburgh Penguins of the NHL.
It also owns a 50% stake in RFK Racing, which competes in NASCAR.
According to The Guardian, FSG has been attracted by Formula 1’s rapid commercial expansion, particularly in the United States.
The championship has experienced substantial growth in television audiences, sponsorship revenue and team valuations since Liberty Media acquired the business in 2017.
The Wall Street Journal has separately reported that FSG is among the parties discussing the purchase of part of Walter’s Cadillac shareholding.
However, the precise percentage under consideration has not been publicly established.
FSG declined to comment on its investment plans, while TWG has maintained that a sale is not imminent.
Walter seeks multibillion-dollar valuation for Cadillac
The discussions follow a report by Sportico on November 2 that Walter was seeking at least $3 billion for his Formula 1 interests.
The publication cited three people familiar with the process and reported that at least seven parties had expressed interest.
Cadillac entered Formula 1 in 2026 through a partnership between General Motors and TWG Global.
Walter controls the team through TWG, although the precise ownership percentages have not been publicly disclosed.
The partners paid a $450 million dilution fee to enter the championship and invested at least another $1 billion in establishing the operation.
According to Sportico, Cadillac is expected to record approximately $400 million in losses during its debut season, largely reflecting start-up costs and the gradual development of its commercial activities.
Despite those expenses, Formula 1’s growing commercial value has made ownership stakes increasingly attractive to institutional investors and major sports organisations.
The potential FSG transaction would therefore represent an investment in the championship’s long-term prospects rather than a purchase justified by Cadillac’s immediate sporting results.
Federal investigations surround Walter’s wider business interests
The possible sale comes amid two federal investigations in the United States involving Walter’s financial businesses.
According to The Guardian, the Department of Justice and Securities and Exchange Commission are examining allegations concerning transactions involving insurance companies Delaware Life, Clear Spring and EquiTrust.
The investigations relate to the management and disclosure of financial dealings involving businesses connected to Walter.
TWG has denied wrongdoing, maintaining that no fraud occurred.
The investigations do not establish criminal liability, and no criminal conviction against Walter has been reported in connection with these allegations.
The billionaire has nevertheless made substantial changes to his sports investments.
He agreed to sell his controlling interest in the Los Angeles Lakers in a transaction valued at $12.5 billion and disposed of his 13% stake in Chelsea.
He is also reportedly exploring the sale of the Los Angeles Sparks, the WNBA franchise.
Walter has insisted that the Los Angeles Dodgers, another major part of his portfolio, will remain under his ownership.
Could a Cadillac investment affect FSG’s Liverpool ownership?
A move into Formula 1 would come during a period of significant change for FSG’s investment in Liverpool.
The group sold 38% of the Premier League club earlier this year to a consortium including investors linked to Amazon founder Jeff Bezos and Facebook co-founder Eduardo Saverin.
The consortium also secured an option to complete a full takeover before August 2027.
Liverpool is now valued at approximately £5.5 billion, compared with the £300 million FSG paid to acquire the club in 2010.
A Cadillac investment could further diversify the group’s sports holdings while its long-term position at Liverpool evolves.
However, there is no confirmed agreement linking the potential Formula 1 acquisition to any future sale of Liverpool shares.
What would a takeover mean for Cadillac’s F1 future?
Cadillac has endured a difficult debut season, struggling to match the established teams despite substantial investment in personnel, facilities and infrastructure.
The American operation is building a long-term Formula 1 programme with General Motors, including plans to develop its own power-unit capabilities.
Sergio Pérez has extended his contract through at least 2029, while Valtteri Bottas’s longer-term position remains uncertain.
Colton Herta is also involved in Cadillac’s development programme and is scheduled to participate in Friday’s opening practice at the São Paulo Grand Prix.
An investment by FSG could provide Cadillac with additional commercial resources and experience in managing major international sports properties.
However, any change of ownership would depend on the structure of the transaction and the continued involvement of General Motors.
There is no indication that the reported negotiations would automatically end Cadillac’s Formula 1 programme or change its manufacturer identity.
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