Fenway Sports Group, the owner of Liverpool and the Boston Red Sox, has held talks about acquiring a majority stake in the Cadillac Formula One team for more than £2bn, as co-owner Mark Walter sells sporting assets amid an investigation into alleged insurance fraud.
Cadillac entered F1 this year as a joint venture between General Motors and Walter's TWG Global, which has sold its controlling interest in the NBA's Los Angeles Lakers and a 13% stake in Chelsea this summer, and is also looking to sell the Los Angeles Sparks WNBA team.
Walter is under investigation by the US Department of Justice and the Securities and Exchange Commission over alleged fraud involving the management of funds at his insurance companies. TWG has said there has been no fraud. The 66-year-old is also the controlling owner of Major League Baseball's Los Angeles Dodgers and has insisted they will not be sold.
TWG has denied that a sale of Cadillac is imminent, but the Guardian has learned it has had talks with a number of interested parties including FSG, whose sporting investments also include majority stakes in the NHL's Pittsburgh Penguins.
A source with knowledge of FSG's plans disclosed that it is looking at other sporting investments after selling 38% of Liverpool this summer to a consortium that includes Amazon founder Jeff Bezos and Facebook co-founder Eduardo Saverin, whose group has also secured the option to complete a full takeover at Anfield before August 2027.
FSG has a history of investing in motor sport through its 50% stake in the Nascar team RFK Racing, with the source adding that it has been attracted to F1 by the sport's growth over the last decade, particularly in the US. F1's annual revenue has more than doubled to $4bn (£3bn) since it was bought by Liberty Media in 2017.
Sportico has previously reported that Walter values his Cadillac shareholding at about £2.24bn. The size of TWG's and General Motors' respective stakes has never been made public. Cadillac are bottom of the constructors' championship in their debut season and have yet to win a point. FSG declined to comment on its investment plans.
Analysis
Why This Matters
- A FSG entry into F1 would bring one of the world's most valuable sports ownership groups into the sport, potentially accelerating its commercial growth in the US.
- The talks come as Mark Walter disposes of assets while under investigation, raising questions about the future structure of his sports empire.
- A deal could affect FSG's position at Liverpool, which it valued at £5.5bn after selling a minority stake this year.
Background
Fenway Sports Group is a US sports conglomerate founded by John Henry and Tom Werner. It bought Liverpool for £300m in 2010 and has since expanded into hockey and motor sport. Cadillac entered Formula One in 2026 as the sport's 11th team, a joint venture between General Motors and TWG Global. TWG Global is Walter's investment vehicle; he is also the controlling owner of the Los Angeles Dodgers. The US Department of Justice and the SEC are investigating Walter over alleged fraud in the management of funds at his insurance companies.
Key Perspectives
Fenway Sports Group: told the Guardian it declined to comment on its investment plans.
TWG Global: has denied that a sale of Cadillac is imminent, and has said there has been no fraud.
A source with knowledge of FSG's plans: said FSG is looking at other sporting investments after the partial sale of Liverpool, and has been attracted to F1 by the sport's growth, particularly in the US.
What to Watch
- Whether TWG enters formal sale negotiations with FSG or another party for the Cadillac stake.
- The outcome of the US investigation into Mark Walter's insurance companies.
- How FSG balances a potential F1 investment with the option for a full Liverpool takeover by the Bezos-Saverin consortium before August 2027.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedFenway Sports Group has held talks about buying a majority stake in the Cadillac F1 team for more than £2bn.Business | The Guardian: “Liverpool’s owner, Fenway Sports Group , has held talks about buying a majority stake in the Cadillac Formula One team for more than £2bn”
- SupportedFSG is reportedly considering a £2bn-plus deal amid TWG Global asset sales.Business | The Guardian: “has held talks about buying a majority stake in the Cadillac Formula One team for more than £2bn as Mark Walter continues to sell off his sporting assets”
- SupportedFSG owns Liverpool and the Boston Red Sox.Business | The Guardian: “Liverpool’s owner, Fenway Sports Group”
- SupportedCadillac entered F1 this year as a joint venture between General Motors and Walter’s TWG Global.Business | The Guardian: “Cadillac entered F1 this year as a joint venture between General Motors and Walter’s TWG Global”
- SupportedTWG Global sold its controlling interest in the Los Angeles Lakers this summer.Business | The Guardian: “which sold its controlling interest in the NBA’s Los Angeles Lakers and a 13% stake in Chelsea this summer”
- SupportedTWG Global sold a 13% stake in Chelsea this summer.Business | The Guardian: “which sold its controlling interest in the NBA’s Los Angeles Lakers and a 13% stake in Chelsea this summer”
- SupportedTWG Global is looking to sell the Los Angeles Sparks.Business | The Guardian: “and is also looking to sell Los Angeles Sparks, the WNBA team.”
- SupportedMark Walter is under investigation by the US Department of Justice and the Securities and Exchange Commission over alleged fraud involving funds at his insurance companies.Business | The Guardian: “Walter is under investigation by the US Department of Justice and the Securities and Exchange Commission, over alleged fraud involving the management of funds at his insurance companies”
- SupportedTWG has said there has been no fraud.Business | The Guardian: “TWG has said “there has been no fraud”.”
- SupportedTWG has denied that a sale of Cadillac is imminent, while the Guardian says it has learned of talks with interested parties including FSG.Business | The Guardian: “TWG has denied that a sale of Cadillac is imminent, but the Guardian has learned it has had talks with a number of interested parties including FSG”
- SupportedFSG sold 38% of Liverpool this summer to a consortium including Jeff Bezos and Eduardo Saverin.Business | The Guardian: “after selling 38% of Liverpool this summer to a consortium that includes the Amazon founder Jeff Bezos and Facebook co-founder Eduardo Saverin”
- SupportedF1’s annual revenue has more than doubled to $4bn (£3bn) since Liberty Media bought it in 2017.Business | The Guardian: “F1’s annual revenue has more than doubled to $4bn (£3bn) since it was bought by Liberty Media in 2017”
