Liberty Media Push For More Teams, Markel Buys Certa, Etc. (Issue #81)
Andretti-Cadillac Work Their Way To Formula One
Since the buyout by Liberty Media in 2016, Formula One has seen some massive changes. These changes include new race weekend structures (Sprint Races), additional grand prix, completely new rules, and more. The business has seen record-high attendance at races and through streaming & broadcasting. Now more teams are trying to get in on the action with Audi set to enter the sport in 2026 and Andretti-Cadilac to enter in 2025. The team run by Indycar legend Michael Andretti has received significant pushback from the potential rival teams. Most of the resistance is related to competition for sponsors and shrinking their slice of the prize pie.
Formula One rewards teams with cash bonuses based on where they finish in the constructors championship. There are no set plans to grow this prize pool with the addition of new teams each team will get less payout in an already rarely profitable industry. In addition, a key source of revenue for the teams is sponsorships. However, only so many companies value this audience’s attention and are willing to pay for it. This is why we often see sponsors being contested for. For example, Gulf moved from McLaren to Williams Racing over the past year.
Markel’s Strategic Investment In Certa
Markel made a strategic investment buying 49% of Certa the UK-based tax managing general agent (MGA). Markel will be a key partner in expanding the company’s geographic reach and product development.
“As part of this investment, Markel will work closely with Certa's management team to support the MGA's business strategy. The partnership will also complement Markel's in-house Warranty and Indemnity (W&I) portfolio, which offers M&A insurance cover for SME transactions to buyers domiciled in the UK and European Economic Area (EEA).”
Cision
Watchlist Updates:
Portfolio Updates:
Until Sunday,
Soren