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Billionaire Seeking On-Ramp Into Formula 1

  • Billionaire Calvin Lo is looking to form or buy his way into an F1 team.
  • The racing series has an entry fee of $200 million.
Red Bull F1 car pulls away from opponents on track
Jerome Miron-USA TODAY Sports

Formula 1 is more popular than ever and a billionaire businessman wants in.

Calvin Lo, who made his riches in life insurance, is looking for an on-ramp into F1 by 2026. Lo told the BBC that he would ideally start a new team, but could also buy into an existing one.

  • F1 currently charges an entrance fee of $200 million to offset potential lost revenue for other teams.
  • While F1’s cost cap will be $135 million from 2023-25, driver salaries, marketing, and other costs push the total cost of operating a team much higher. Mercedes’ F1 team, for instance, had roughly $347.3 million in expenses in 2021.
  • A new team would also require significant upfront infrastructure investments, which could reach $1 billion.

Lo’s estimated net worth is $1.7 billion, per Forbes.

Lane Change

With the introduction of the cost cap in 2021 and new engine regulations coming in 2026, a handful of high-profile individuals and companies are looking for a way into F1.

Racing legends Mario and Michael Andretti are hoping to join the series, but the entry fee and F1’s resistance to adding more cars to the grid have thus far prevented a deal.

Audi will join the Sauber team as a power unit supplier, starting in 2026, and Porsche is still interested in finding a partner after a deal to purchase half of Red Bull Racing fell through.

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