Why Andretti’s Recent Attempt to Take Over an F1 Team Appears at the Right Time · RaceFans

Michael Andretti has long been planning to take the name of the first family of American automobile racing into Formula 1. In August 2018, it emerged that his group had made an offer to acquire Force India, but the offer was rejected because it was admissible.

His endeavor to bring the family name to the forefront of the sport is easy to understand. Both Michael and father Mario are ex-F1 drivers, the latter crowning his career as the 1978 F1 World Champion after also winning the Indycar Championship, Indianapolis 500 and more.

Although Michael Andretti’s F1 career was less celebrated – he left his only season at McLaren before his 1993 season ended – he was also an Indycar champion, taking 42 race wins.

As a team manager he is even more successful. Andretti Autosport competes in international categories ranging from IndyCar and Formula E to Supercar V8 and Extreme E, the last two series in collaboration with Zak Brown, who is of course also CEO of McLaren Racing.

The US-based commercial rights holder Liberty Media has long had plans to increase interest in the sport in North America by adding more Grands Prix to the continent – hence the inclusion of Miami on the F1 calendar in 2022. Another US team alongside Haas and the presence of a local driver (or two) would obviously aid Liberty’s quest – especially if the Andretti name and brand were to be involved.

Andretti left Formula 1 after taking his first podium in his 13th race, the group of companies that heads the Alfa Romeo brand’s F1 team. The Sauber Group is itself a division of Longbow Finance SA – the Rausing family’s investment vehicle (with the fame of Tetrapak). In fact, one of our sources stated that the deal was “80% complete”.

Sure, an 80% deal is not a firm deal, but what makes credible is the fact that it has long been the case in the paddock that Longbow is discreetly offering the team – in whole or in part – for sale, especially because the F1 outfit is not Longbow’s investment fits profile. Finn Rausing, who controls Longbow, is said to be an ardent supporter of the sport, however, and would appreciate any peripheral involvement.

Longbow stumbled upon F1 team ownership by accident in 2016. The fund backed Rausing’s Swedish compatriot Marcus Ericsson at Sauber, and when the team was overwhelmed by a series of management errors, Longbow stepped in and eventually turned debt into property. Longbow became a reluctant team owner and packaged Sauber as an Islero for immediate sale.

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When RaceFans asked for a comment from Andretti Autosport on the possible purchase, a carefully crafted statement was made, which is repeated here in full:

Andretti submits a competing offer for Force India to Stroll “Michael and the team have been interested in Formula 1 for some time, that’s no secret. We have explored and come close to many options over the years, but we have nothing new to report. Our passion is racing in all its forms. Should there be a suitable opportunity to bring the Andretti name back into F1, we would take it. But so far this opportunity has not fallen into our laps and we continue to focus on our seven current competitive disciplines. “

The fact that there is “nothing new to report” does not mean that there are no discussions behind the scenes – nor that negotiations are currently underway. Likewise, “should a right opportunity arise” is a fairly broad statement – after all, what is “right opportunity” in the sense of Formula 1? Price? Steering? Location? Investments? As for it, it can only be clean …

Then the prospect could be Michael in his personal capacity or as Andretti Autosport or even Andretti Acquisition Company, an investment vehicle founded by Michael in March of this year. However, a spokesman for AAC told RaceFans on Friday that AAC was not involved in any Sauber talks. But there is no reason why that couldn’t change in the future.

But, aside from sentimental reasons, why should Michael Andretti be interested in F1? As many motorsport entrepreneurs have noted, this is generally the fastest way to lose a fortune instead of making it.

But circumstances have changed under Liberty. The new technical and financial regulations of Formula 1 are intended to close the field and lower budget ceilings in order to reduce the costs of the competition.

First, Formula 1 prize money structures have changed, with independent teams likely to make around $ 10 million (£ 7.35 million) more each year than before. The global awareness of the sport should facilitate the acquisition of sponsors – especially in the USA.

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F1 TV ratings in the US have seen the biggest surge of all time recently, while the Netflix series Drive to Survive has brought an entirely different demograph to the sport. Andretti, or any other US-based team, could benefit tremendously from Liberty’s initiatives.

Sauber’s Alfa Romeo Team is ninth in the championshipSauber offers excellent equipment. BMW, which owned the team from 2006 to 2009, invested heavily. It has a long-term branding and sponsorship deal with Alfa Romeo – team sources told RaceFans it runs for four years with options – which in turn means Andretti would effectively go into a race-ready operation, albeit with plenty of headroom.

Finally, there is the emotional side: Sauber has close ties to Ferrari and operates drive trains supplied by Maranello. Mario won his first Grand Prix (1971) with the Scuderia, of course, drove 10 years later under the red and white of the Alfa Romeo F1 team and ended his Grand Prix career with the Scuderia.

Michael recently announced that he was offered a Ferrari F1 drive in 1992 – before joining McLaren – despite a Ferrari source telling RaceFans that it was more of an inquiry than an offer. However, it is known that minor factors have influenced the business, so the emotional aspect cannot be underestimated.

Neither of the foregoing guarantees that a deal between Sauber and Andretti will or will be terminated. Those factors merely illustrate why it could be cut and what the benefits are for both parties: Andretti gets a funded turnkey operation, one with contractual backing from the engine manufacturer, much like he enjoys with BMW in FE, and Longbow leaves the formula 1, while Rausing remains involved over a 20% stake.

If the deal goes through, the ideal time to announce it would be during the United States Grand Prix – two weeks from now. Other F1 deals were cut faster.

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