McLaren Group has secured its long-term future by selling a minority stake to US-based sports investment group MSP Sports Capital for £185million.
MSP, that already operates in Major League Baseball (MLB), the National Basketball Association (NBA), ESPN, and sports management, will be co-investing with strategic partners UBS O’Connor and The Najafi Companies.
The investment has initially secured a 15% stake that will increase to a maximum of 33% by the end of 2022 and is designed to help drive the company's plan to return McLaren to the top in Formula 1 and continue its growth as a global sports franchise
The transaction values McLaren Racing at £560m, post-money.
CEO Zak Brown has committed to McLaren Racing for the long term, while Paul Walsh, currently executive chairman of the McLaren Group, will serve as chairman of McLaren Racing.
They will be joined by Jahm Najafi and Shaikh Mohammed bin Essa Al Khalifa as vice-chairmen. As part of the transaction, Jeff Moorad of MSP Sports Capital and Rodrigo Trelles Zabala of UBS O’Connor are appointed to the board of directors of McLaren Racing, alongside Sultan Ojjeh and Will Griffiths of McLaren Group.
Walsh said “The partnership we are announcing today represents another important step in our proactive strategy to position McLaren Group for long-term success.
"Bringing partner capital and expertise into McLaren Racing will support the team’s return to the front of the grid and further strengthen our financial position.
“The fact that we have attracted a strategic investor of MSP Sports Capital’s calibre is testament to the unique history and exciting prospects of McLaren Racing.
"The business remains part of the McLaren Group and we look forward to working with MSP Sports Capital to deliver the next chapter of growth and success.”
Brown added "Thhis investment represents a key moment in the progress of McLaren Racing.
"MSP Sports Capital is first and foremost a sports investor. They know the market and their team has considerable experience and proven success in global sports properties.
"They are a partner as much as a shareholder, with the ability to leverage their network and knowledge for the long-term benefit of McLaren Racing.
“This new investment bolsters our plan to return McLaren to contention for race wins and championships in Formula 1 and IndyCar, and will strengthen our positive momentum as we continue to focus relentlessly on our mission to return to the top of the podium.”
MSP principal Jeff Moorad remarked: “We’re excited about the opportunity to support Zak Brown and his management team and to help grow the McLaren Racing brand.
"We’re committed to assist the team in accomplishing its objective of returning to the front of the grid.”
Jahm Najafi, principal of MSP and chairman and CEO of The Najafi Companies concluded: "As a partner in MSP, I am delighted that The Najafi Companies has significantly increased our support of MSP and its investment in McLaren.
"This investment reflects the strength of our relationship, as well as the confidence we have in the McLaren Racing team platform.
"I am delighted to accept the role of vice-chairman and look forward to contributing to the growth and success of McLaren Racing.”
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