Liverpool's owner FSG has held discussions about acquiring a majority stake in the Cadillac Formula One team for more than £2bn, according to The Guardian. The potential deal comes as Mark Walter, who jointly owns Cadillac through his company TWG Global, continues to divest from his sporting portfolio amid federal investigations into alleged insurance fraud.
Cadillac entered Formula One this year as a joint venture between General Motors and Walter's TWG Global. The team finished bottom of the constructors' championship in its debut season without scoring a point after 19 races. Walter is under investigation by the US Department of Justice and the Securities and Exchange Commission over allegations of fraud involving the management of funds at his insurance companies Delaware Life, Clear Spring, and EquiTrust. TWG has stated "there has been no fraud".
TWG Global has denied that a sale of Cadillac is imminent, though the company has engaged in talks with multiple interested parties beyond FSG. According to The Athletic, the reported asking valuation stands at least $3 billion, with more than 20 parties approaching TWG, though fewer than seven were serious potential buyers capable of meeting its expectations. Reports also indicate that Walter is considering selling only part of his Cadillac stake rather than his entire holding.
Why is Walter selling his sporting assets?
The 66-year-old billionaire has been systematically reducing his sports investments. TWG Global sold its Chelsea stake to Clearlake Capital this summer, with Walter and co-owner Todd Boehly exiting the club entirely. The company is also exploring the sale of the Los Angeles Sparks, the WNBA team. However, Walter insists that the Los Angeles Dodgers, which he controls in Major League Baseball, will not be sold.
The financial pressures on Walter's sports ventures are substantial. According to Yahoo Sports, Cadillac was reportedly on track to lose roughly $400 million in 2026. TWG Motorsports and General Motors had paid a $450 million dilution fee and invested at least another $1 billion to launch the team in the first place.
What are FSG's sporting interests?
FSG's portfolio extends across multiple sports and continents. The company holds majority stakes in the Boston Red Sox in Major League Baseball and the Pittsburgh Penguins in the NHL. It also maintains a 50% stake in the NASCAR team RFK Racing, demonstrating existing involvement in motor sport.
A source with knowledge of FSG's plans revealed that the company is exploring additional sporting investments following its partial sale of Liverpool this summer to a consortium that includes Amazon founder Jeff Bezos and Facebook co-founder Eduardo Saverin. That consortium has secured the option to complete a full takeover at Anfield before August 2027. FSG's interest in Formula One stems from the sport's remarkable growth over the last decade, particularly in the United States.
How valuable is Formula One?
Formula One has experienced explosive financial growth since Liberty Media acquired it in 2017. The sport's annual revenue has more than doubled to $4 billion (£3 billion), and the value of its television rights continues to increase. This expansion has made the sport increasingly attractive to major investors seeking exposure to a growing global entertainment property.
Sportico previously valued Walter's Cadillac shareholding at approximately £2.24 billion. The precise sizes of TWG Global's and General Motors' respective stakes in the team have never been publicly disclosed.
What is the significance for Liverpool?
A move by FSG to invest substantially in Cadillac could have implications for its position at Liverpool, which is valued at £5.5 billion following this summer's partial sale. The investment opportunity presents FSG with the potential to realise a significant profit, having paid £300 million for the entire club in 2010. However, the company has not commented on its investment plans.
What happens next?
Cadillac's next scheduled race is the São Paulo Grand Prix, taking place on 6–8 November 2026. The team will continue its 2026 campaign while discussions around its ownership structure continue. Cadillac has undergone significant changes since the summer break, with the team seeking to improve its performance and financial position.
According to IndyStar, TWG Motorsports is not seeking buyers for its other racing properties, including Andretti Global, Spire Motorsports, Wayne Taylor Racing and Walkinshaw TWG Racing. This suggests that any divestment by Walter would be focused specifically on the Formula One operation rather than a wholesale exit from motorsport.
