”From movie icons to renowned athletes, investing in the Alpine F1 team has become a sought-after endeavor for celebrities. The question arises: Why is this trend gaining momentum, and does it mark the dawn of a new era with influencer investors at the forefront?
One might naturally assume that if you were a sports celebrity seeking affiliation with Formula 1, you’d prioritize teams like Ferrari, Red Bull, and Mercedes, who feature some of the sport’s global icons.
Yet, in recent months, an intriguing shift has taken place as a lineup of prominent athletes pledged their allegiance and financial support to the perpetually volatile and underperforming Alpine team.
The Enstone-based squad’s very own ‘Walk of Fame’ kicked off in June when actors Ryan Reynolds and Rob McElhenney made a lasting impression by joining a consortium of investment firms that acquired a 24% stake in Alpine for £172 million.
This dynamic duo was soon joined by Black Panther actor Michael B. Jordan. Subsequently, the roster expanded with the likes of Liverpool and England footballer Trent Alexander Arnold, Spanish footballer Juan Mata, NFL stars Travis Kelce and Patrick Mahomes, four-time golf major winner Rory McIlroy, tennis sensation Alexander Zverev, and heavyweight boxing champion Anthony Joshua. Each of them holds a stake in the consortium and shares a collective excitement and confidence that their involvement can propel Alpine to success.”
“I am thrilled to lead an investor group and join forces with the team at Otro Capital on this exciting venture with Alpine F1,” said Kansas City Chiefs tight end Kelce — best known among non-NFL fans for his relationship with Taylor Swift. “Our shared passion for excellence and innovation forms the cornerstone of this partnership.
“It’s about being able to contribute to a sport that demands precision, teamwork, and relentless pursuit of success. I am looking forward to this new chapter and can’t wait to see what we achieve together.”
The effusive declarations from these investors, as well as their counterparts, left a series of important questions unanswered: Why opt for investment in Formula 1? Why choose Alpine as the platform? And what are their anticipated returns on this venture?
When Alpine relinquished its stake earlier in the summer, CEO Laurent Rossi (who has since been replaced) expressed hope that the collaboration would enhance the team’s revenue by securing improved sponsorship, licensing, and merchandise deals.
Investing in Formula 1 now presents an opportunity for financial gain, thanks to the cost cap that limits the extravagant spending of teams. This brings forth the prospect of profitability, potential returns for investors, and an increase in team valuation. However, given uncertainties regarding the growth trajectory of Formula 1 and the ongoing changes within the Alpine team, there are no guarantees for this consortium.
Naman Agrawal, a marketing and brand consultant at CBR Media, a marketing and management agency specializing in motorsport, succinctly sums up the situation: “It’s primarily driven by vanity. It provides Alpine with a means to connect with the sport’s fan base through celebrities, leveraging their following across diverse markets.”
Agrawal further highlights the significance of Alpine’s roster of celebrity investors, including NFL stars, Rory McIlroy, and Trent Alexander Arnold. He underscores that this approach aligns with the recent expansion of Formula 1 and its focused efforts to tap into the U.S. market, enabling Alpine to compete with heavyweight names like Ferrari, Mercedes, and Red Bull.
So it’s an injection of attention for Alpine, using sporting celebrities as influencers, hoping that their stardust will rub off on the team. But what about the people stumping up the money?
“For the personalities themselves, I don’t think it’s a very good investment. They’re not going to get anything out of it apart from a way into the Formula 1 club.”
Think of it as an exclusive grand prix ticket: a cut above the corporate guests sipping champagne in the Paddock Club; the financiers sunbathing on yachts in Miami’s fake harbour; or the Las Vegas hotel guests watching the racing from their lavish suites.
But the perks of being a team investor, which presumably include behind-the-scenes access, as well as VIP treatment in the paddock, garage and on the grid, doesn’t come entirely without risk, particularly if investors aren’t fully committed to the partnership.
Following its rebrand from Renault to Alpine in 2021, the team embarked on numerous changes in a bid to recapture the glory of its mid-2000s front-running days. Notable steps included the return of Fernando Alonso and the recruitment of team principal Otmar Szafnauer from Aston Martin. There was also the promising presence of Oscar Piastri waiting in the wings. However, these key figures have since departed, and the team is grappling with on-track challenges.
“Alpine is currently more of an underdog when it comes to marketing,” noted Argawal, an advisor to F1 Academy’s Bianca Bustamante, the first female member of the McLaren driver academy. “They tend to maintain a low profile in terms of fan engagement and are somewhat the dark horse in the midfield. They are the last team still utilizing the Renault engine. This partnership, at the very least, is grabbing attention.”
Argawal also highlights the potential pitfalls when A-list celebrities engage in F1 events. He notes that sometimes fans are put off when celebrities appear disinterested or uninformed about the sport, particularly when interviewed by prominent F1 commentator Martin Brundle. Such encounters can evoke frustration among the audience.
Argawal’s insights into Alpine’s partnership emphasize its value in terms of raising funds and generating publicity. However, the likelihood of other teams following a similar path remains uncertain, primarily because they may not be inclined to sell a stake.
“For Alpine itself, this seems more like a publicity stunt or a marketing endeavor to associate themselves with these stars,” said Argawal. “I don’t anticipate a wave of celebrities entering the sport now, making it more international than it already is. If smaller teams like Haas perceive commercial value in it, they might consider a similar path. But the trend is not widespread.”
Argawal’s perspective aligns with the sentiment of others who believe that F1’s era of rapid growth is decelerating. While the sport experienced a surge in viewers and social media followers, sparked by “Drive to Survive” and the intense 2021 title battle between Max Verstappen and Lewis Hamilton, there have been indications of a decline in new followers. Some attribute this trend to Verstappen’s dominant performances.
Alpine may view celebrity investors as a strategy to navigate these challenges. However, Agrawal, whose agency is based in Hong Kong, suggests that F1 should explore alternative avenues to reinvigorate its appeal to fans.
