22/10/2024
NEWS STORY
Having pulled the plug on Renault's involvement as a manufacturer, the company's CEO, Luca de Meo claims that as the sport moves forward teams could be worth as much as $5bn.
His claim goes even further than Zak Brown, who previously suggested that all the teams were worth "north of a billion"
"Half the grid is profitable," Brown told Bloomberg in March. "They weren't five years ago.
"What Liberty is wanting to do is protect the value of the ten teams that exist," he added. "In the pre-Liberty era you had teams falling away. Now in the Liberty era, there are teams lining up that want to get into the sport."
While Renault is to withdraw from F1 at the end of 2025, Alpine will continue and though it has yet to be confirmed it is believed that the French cars will be powered by Mercedes engines as Aston Martin ditches the three pointed star in favour of Honda.
Renault, which has a history of leaving the sport only to return again, bought the Enstone-based outfit from Genii Capital in 2015 for £1, but also took on the company's considerable debts.
In mid-July 2023, Forbes valued the F1 team at $1.3bn (£1bn), however when 24% of the team was sold just three months later the value appeared to be around $900m (£695m).
Though rumours have abounded that the team was to be sold, de Meo has repeatedly denied the claims, insisting that Alpine is in for the long haul and it isn't just about money.
That said, he is happy to claim credit for what he claims to be a dramatic rise in the team's financial fortunes... even if that isn't reflected on track.
"It contributes to the financial valuation of the group," He tells L'Equipe of the involvement in F1. "When I was presented with the F1 activity, it was a cost line in the marketing budget. I have already crystallised $1 billion in value.
"That's not bad, right?" he adds. "It also helps to value Renault's stock. So there is no question of selling the family jewels."
Like Brown, Liberty CEO Greg Maffei and F1 CEO Stefano Domenicali, de Meo claims there are prospective teams queuing around the block eager to enter the sport, presumably alongside the queue of nations hoping to host races.
"I receive calls every 15 days from financiers, eccentrics who want to enter F1," says the Italian. "They know that after 2026 it will cost much more.
"If you are given $1 billion today to take the team, they will be able to resell it for double, two years later. It is full of speculators here. I have refused fifty times.
"A team will soon be worth between $3 and $5 billion," he says. "I am not going to sell, I am not stupid.
"Being in F1 is essential for the Alpine brand. We are in a closed club. It gives us credibility to the brand among car enthusiast. We do not need this money."
If his words seem a little familiar, it isn't simply because we've heard the same patter from the aforementioned Messrs Brown, Maffei and Domenicali, no, in this particular case it's because de Meo's words sound awfully similar to those of that pushy estate agent we've all encountered...
"It's a truly upcoming area, very much in demand.
"You've got all the facilities you need, right on hand, easy access to everything but without being busy, if you know what I mean.
"Good class of neighbours, great schools... in fact, my wife and I are buying one of the properties over on the other side, she's expecting you know.
"If you're interested you'll have to move fast however, we've already had huge interest in this one, and we're not sure we can hold out much longer.
"It's not just an investment, it's a home, a place where you and your family will be part of an exclusive community, somewhere you'll want to belong to.
"Now, if you'd just like to sign here..."
The boys at Glengarry Glen Ross (aka Death of a F****** Salesman) have nothing on Luca.