General Motors Commits To F1 Without Andretti

General Motors has committed to F1 without Michael Andretti and in this week’s edition of the Business of Motorsport you will find out why. I also have news on yet more firings at the FIA, the impact of the Las Vegas Grand Prix and whether AI can threaten or enhance a motorsport lawyer’s job.

Motorsport Industry News

Formula 1

General Motors Commits To F1 Without Andretti

As I eluded to last week, GM has confirmed that there is an agreement in principle to enter Formula 1 in 2026 under the Cadillac brand and not under the Andretti Global banner. GM is also launching an F1 power unit that will put the Cadillac Formula 1 Team on the path to being a “full works” team, building its own F1 vehicles and power units, by the end of the decade.

While the team is not officially Andretti Global, in reality, very little has changed. The people behind the project are the same, even if the CEO of Andretti Global, Michael Andretti, has gone. One of the Andretti Global financiers, Dan Towriss, is now overseeing all of TWG Global’s motorsport activities that also include Wayne Taylor Racing and Spire Motorsports.

Hiring has increased and the team has confirmed that they have hired former Renault F1 engine tech chief Rob White and that Mario Andretti has been named as a director on the board of the team. The team will pay a reported $450M expansion fee. The manufacturer has also stated that they will continue to race in the WEC and IMSA.

Here is a roundup of some great coverage of what is undoubtedly a huge development in motorsport.

Why did GM commit to F1? Part of the reason could be that team valuations are continuing to increase. The current 10 teams are worth $2.31 billion on average, up 44% from Sportico’s previous F1 team valuations in June 2023. Ferrari leads the way at $4.78 billion, followed by Mercedes ($3.94 billion) and Red Bull Racing ($3.5 billion), based on our calculations and interviews with those knowledgeable of F1 finances, including team executives, sports bankers, attorneys and investors.

Read the full report from Sportico here.

The chaos at the FIA continues this week as a number of FIA personnel have been let go once again. F2/F3 race director Janette Tan and long-serving FIA race steward Tim Mayer are now gone. And Mayer has come out publicly accusing FIA president FIA president Mohammed Ben Sulayem of “directly involved himself in making his views known” within the organization.

Joe Saward reports in his latest Green Notebook that audit committee president Bertrand Badre and Britain’s Tom Purves are no longer involved after a dispute with Ben Sulayem of a dispute over expense charges to the FIA over the use of his private jet. Even the drivers are demanding to know who is getting the axe next.

Las Vegas Grand Prix Liberty Media

I don’t think I have ever seen so much coverage in both the motorsport and main-stream media over an F1 race like I have seen over the Las Vegas Grand Prix. Here is just a sample of articles that look at the sophomore race, with most accounts indicating that the race is both a sporting and commercial success despite the decline in viewership for year two.

Formula 1 has announced that the Italian Grand Prix will remain on the calendar until 2031 inclusive as part of a new six-year extension to the existing agreement, which runs through 2025. The new deal follows significant upgrades to the Autodromo Nazionale Monza ahead of the 2024 Grand Prix, where 335,000 fans attended across the weekend to see Ferrari’s Charles Leclerc take the chequered flag.

Why are all these cities clamoring to host a Grand Prix? CNBC looks at the local impact and economics of hosting an F1 race. “It’s a real shot in the arm for the local economy here,” said Stuart Pringle, CEO of the Silverstone Circuit, home to the very first F1 race in Britain.” Read the full article here.

ESPN wants to renew its media rights deal with Formula 1 despite somewhat plateaued U.S. viewership and thinks that it’s still getting a good return on investment, because it also considers things like the cool factor and client-entertainment opportunities around the series, per senior vice president of programming Tim Bunnell as reported by Sports Business Journal.

“This is a long-term play for us, and the ratings are one thing, but you look at the client-entertainment possibilities, the marketing opportunities, just the cache of being associated with Formula 1, it pays us back in droves. We’ve been thrilled with the entire relationship with F1 from the get-go. They’re terrific to work with and we benefit in so many ways. I mean, F1 has just become cool. And a big emphasis for us, for ESPN, is audience expansion.”

Formula 1 has announced the introduction of a formal Diversity and Inclusion (D&I) charter, which has been agreed by all ten teams, Formula 1 and the FIA, and has been created with support from the Royal Academy of Engineering, which, alongside Sir Lewis Hamilton, delivered The Hamilton Commission*’s original report in 2021.

“As a sport that prides itself on its unrelenting high performance, Formula 1 recognises the importance that diversity plays in introducing new perspectives and ideas, and driving innovation, culture, and business results. And while it is an environment of intense competition, there is recognition that inclusion cannot be achieved by working alone, but through collaboration. The charter is designed to make this a reality and produce positive lasting results.”

You can read more about the charter here.

General Motorsport Industry News

Lexus GT3

Daily Sportscar looks at what is coming to GT3 in the near-future. Get ready for an Evo BMW In 2025 and a new Lexus, Lamborghini, AMG and an Evo Ferrari in 2026.

“The past two years have seen the racing debuts in customer hands of no fewer than four new GT3 cars and a further trio of ‘Evo’ versions of existing homologated cars. The new cars from Porsche, Ferrari, Corvette and Ford and the ‘Evo McLaren, Lamborghini and Aston Martin now form the core of the world’s GT3 and LMGT3 grids. But what’s next for the most successful class in GT racing history?”

Read what to expect here.

SRO America has been cognizant of balancing its own multi-class championships with emerging single-make series from manufacturer partners over event weekends according to President and CEO Greg Gill.

“Every series that runs events always looks to what can be done if there’s any time open on their schedule. ‘Is there another race series that we could run there?’” Gill told Sportscar365.

Read more here.

Mark Crutcher, Paul Hadley and Graham Cheney have combined to acquire PBR Distributions and the TA2 Muscle Car Series, marking the first ownership change in the category’s history in Australia. PBR – until now owned and run by Peter Robinson – has long underpinned Trans Am racing in Australia as the exclusive car importer and parts distributor, as well as the technical partner for the National Trans Am Series.

Get more details at SpeedCafe here.

Friends of Laguna Seca and A&D Narigi Consulting, LLC have jointly announced that the Management Agreement between the parties will terminate on Dec. 31, 2024.

“Since 2020, A&D Narigi, LLC has done a great service to Monterey County and Laguna Seca Recreation Area, including WeatherTech Raceway Laguna Seca, in returning the operations of the facility to profitability and in the many improvements made to the park during the past few years, including the new racing surface and Mission Foods Bridge,” said Ross Merrill, president of the Friends of Laguna Seca. “Friends will take over management of Laguna Seca while retaining all existing employees. We are looking forward to a bright future for Laguna Seca under our new operating structure.”

RACER has more here.

Quick Takes on the Business of Motorsport This Week

General Motors Commits To F1 Without Andretti
General Motors Commits To F1 Without Andretti

Highlights from the Sustainable Motorsport Roundup

Cop29 Julia Palle

A sometimes contentious COP29 recently concluded, and Formula E VP of Sustainability Julia Pallé reflects on both her optimism and concern after participating in COP29’s Transport Day. This week I also have an update on what has been happening with Electric GT since it was announced in 2021. I also have more great advancements in sustainable transportation and logistics in Getting to the Track Sustainably plus much more in this week’s edition of the Sustainable Motorsport Roundup.

Motorsport Law Roundup

A look at some of the legal and regulatory issues and analysis in Motorsport this week

General Motors Commits To F1 Without Andretti

As Michael Jordan files a new petition for a preliminary injunction against NASCAR, Tony Stewart has made it clear where he stands on NASCAR charters.

“The charter agreements are a joke. And if people aren’t smart enough to read between the lines – when someone like Rick Hendrick says, ‘I just got tired of arguing with them,’ do you think Rick Hendrick runs his business and negotiations and just says, ‘I’m going to just sign this agreement because I’m tired of arguing with you.’ Rick Hendrick’s never done that a day in his life.”

The FIA verdict on the US GP spectator track invasion has been tweaked after a right of review hearing, and Circuit of The Americas is now deemed to have taken “reasonable measures.” However, the penalty remains. Adam Cooper has more.

The Race 1 result from the Fanatec GT World Challenge Europe powered by AWS Sprint Cup finale in Barcelona has been canceled after Team WRT filed an appeal regarding the application of the safety car procedure, with the Belgian team set to win the overall teams’ title in as a result of the subsequent points deductions. Sportscar365 has the details.

Taito Kato followed in the footsteps of his fellow Honda junior and countryman Ayumu Iwasa by winning the French Formula 4 title after a hard-fought championship battle with Yani Stevenheydens that was resolved earlier this month after numerous appeals and penalties. Feeder Series has the details.

AI is infiltrating itself in every aspect of our lives and the legal profession is no exception. Motorsport lawyer John Hand asks the question, could GenAI take his job? Read his conclusions here.

Motorsport Sponsorship & Partnership News

Here are the latest motorsport sponsorship deals, partnerships and related analysis that were announced this week

General Motors Commits To F1 Without Andretti
General Motors Commits To F1 Without Andretti
General Motors Commits To F1 Without Andretti

Team & Manufacturer News

Here is a roundup of the latest team news from around the world of motorsport

General Motors Commits To F1 Without Andretti
General Motors Commits To F1 Without Andretti
General Motors Commits To F1 Without Andretti
General Motors Commits To F1 Without Andretti
General Motors Commits To F1 Without Andretti
AO Racing
Mark Boudreau
Author: Mark Boudreau

Mark is the publisher of Motorsport Prospects. As a former lawyer, he applies his legal background and research skills to assist race drivers by showcasing the resources they need to make their motorsport careers happen.