F1 News: McLaren Racing valued at $4 billion as Arabs take full control (Update)

McLaren Racing CEO Zak Brown has confirmed the sale of the remaining 30% stake in the team, valuing McLaren Racing at $4.1 billion (£3.05 billion). Bahrain’s sovereign wealth fund Mumtalakat and Abu Dhabi’s CYVN Holdings, who already owned McLaren Group, acquired the stake, which covers McLaren’s Formula 1, IndyCar, and upcoming 2027 World Endurance Championship (WEC) operations. Mumtalakat previously held a majority share, while CYVN had a non-controlling interest.

–by Mark Cipolloni–

“It’s all done,” Brown told Bloomberg. “The sport is on fire. Every metric—fan engagement, team demand—is soaring.”

Brown credited Formula 1’s growth to Liberty Media’s acquisition and the introduction of a cost cap, which has ensured financial and competitive stability. “Fans are turning out in the tens and hundreds of millions, and sponsors and partners are joining like never before,” he said. “The sport’s momentum is incredible, and I hope it continues.”

When asked if he fears the sport’s rapid rise could plateau, Brown was optimistic. “Sports have always trended upward,” he said. “Every record deal seems ‘crazy’ at the time, but five years later, the numbers keep climbing. Formula 1 has room to grow. We have 24 races, but demand for 30 Grands Prix. The appetite is huge.”

Highlighting McLaren’s appeal, Brown noted, “Our car carries the world’s top brands—Mastercard, Google, and more. The on-track competition is thrilling; last year, four teams and seven drivers won races, a first in my 30 years in the sport. Off-track, Netflix captures the drama perfectly. The demand for Grands Prix has never been stronger. In many ways, Formula 1 is just getting started.”

McLaren Racing is set to come under full ownership of its Gulf investors, with Bahrain’s Mumtalakat sovereign wealth fund and Abu Dhabi’s CYVN Holdings agreeing to acquire the remaining 30% stake in the Formula 1 team, valuing it at over $4 billion.

This deal marks a stunning recovery for McLaren, which resorted to emergency fundraising four years ago during the COVID-19 pandemic. The transaction reflects a broader trend in Formula 1, with comparable deals like Aston Martin’s recent plan to sell a stake valuing its team at £2.4 billion ($3.2 billion).

According to *Sky News*, the minority stakes, held by a consortium including US-based MSP Sports Capital, Ares Investment Management, UBS O’Connor, and smaller investors, are being bought out. MSP’s 2020 investment of a 15% stake at a £560 million valuation provided a lifeline for McLaren Group amid financial restructuring and asset sales.

These investors now stand to gain substantial profits, with McLaren Racing’s value surging more than fivefold in four years. The deal, expected to be announced as early as this week, will cement Mumtalakat’s position as the controlling shareholder.

Racing Success and Strategic Growth

For Mumtalakat and CYVN, full ownership strengthens their hold on a prestigious motorsport and automotive brand, founded by Bruce McLaren in 1963. Under CEO Zak Brown, McLaren is enjoying a renaissance, having clinched last year’s Constructors’ Championship and dominating the 2025 season.

Oscar Piastri leads the Drivers’ Championship by 34 points over teammate Lando Norris, positioning McLaren to capitalize on its on-track success and growing commercial appeal.

This sporting prowess, paired with a robust financial outlook for McLaren Group, which includes McLaren Automotive, enhances the team’s stature as a Formula 1 powerhouse. The simplified ownership structure is set to streamline operations and bolster McLaren’s long-term strategy, solidifying its place among the sport’s elite.