Already a partner in Fenway Sports Group, several European soccer teams, and the XFL, RedBird Capital Partners is reportedly nearing a deal to expand its sports empire even further.
The New York-based private investment firm is in talks with Renault SA for a minority investment in Renault’s Alpine Formula 1 team, according to Bloomberg.
The deal would see RedBird acquire a minority stake in Alpine’s U.K. operations and aid in key revenue-generating activities, such as media rights and sponsorship sales, during a boom period for F1.
Financial terms of the potential agreement were not disclosed, but F1 CEO Stefano Domenicali said last week that F1 team owners have been turning down investment and buyout offers worth “almost billions.”
An enforced scarcity is a key element of the investor interest. F1 has remained at 10 teams despite the property’s ongoing growth.
Beginning with the hit Netflix series “Drive to Survive,” F1’s fan interest continues to surge, especially in the U.S. The highly anticipated Las Vegas Grand Prix will debut this fall and media rights in the U.S. have expanded as it has experienced historic television ratings for the Miami and Monaco GPs.
RedBird manages more than $8.6 billion in assets, and through its FSG equity has ownership stakes in the Boston Red Sox, Liverpool FC, and Pittsburgh Penguins. It also led a $1.3 billion acquisition last year of Italy’s AC Milan and owns France’s Toulouse FC.
The XFL, however, recently eliminated an undisclosed number of full-time positions amid cost-cutting efforts.