McLaren secures investment from MSP - MotorSportsTalk

McLaren Racing announced a significant minority investment from MSP Sports Capital on the same day they secured third-place in the Formula 1 constructors championship.

MSP Sports Capital is joined in the investment by their strategic partners UBS O’Connor LLC and The Najaffi Companies in a deal to acquire a 15 percent stake in McLaren initially with a plan to increase to a maximum of 33 percent by the end of 2022. With this investment, the valuation of the company is reported to be 560 million pounds post money, or about $747.7 million in US dollars.

The McLaren Group remains the majority stakeholder after the MSP Sports Capital group invests about $247 million.

“The partnership we are announcing today represents another important step in our proactive strategy to position McLaren Group for long-term success,” Paul Walsh, Executive Chairman, McLaren Group said in a press release. “Bringing partner capital and expertise into McLaren Racing will support the team’s return to the front of the grid and further strengthen our financial position.

“The fact that we have attracted a strategic investor of MSP Sports Capital’s caliber is testament to the unique history and exciting prospects of McLaren Racing. The business remains part of the McLaren Group and we look forward to working with MSP Sports Capital to deliver the next chapter of growth and success.”

McLaren CEO Zak Brown has committed to McLaren Racing for the long term with his leadership team remaining in place. Paul Walsh will sit as chairman of McLaren Racing, while Jahm Najafi and Shaikh Mohammed bin Essa Al Khalifa become vice-chairmen.

“This investment represents a key moment in the progress of McLaren Racing,” Brown said. “MSP Sports Capital is first and foremost a sports investor. They know the market and their team has considerable experience and proven success in global sports properties. They are a partner as much as a shareholder, with the ability to leverage their network and knowledge for the long-term benefit of McLaren Racing.

“This new investment bolsters our plan to return McLaren to contention for race wins and championships in Formula 1 and IndyCar, and will strengthen our positive momentum as we continue to focus relentlessly on our mission to return to the top of the podium.”

As part of the transaction, Jeff Moorad of MSP Sports Capital and Rodrigo Trelles Zabala of UBS O’Connor are appointed to the board of directors of McLaren Racing, alongside Sultan Ojjeh and Will Griffiths of McLaren Group.

Moorad was previously one of the owners of Hall of Fame Racing, which fielded cars in the NASCAR Cup series from 2006 through 2009.

The news came before the start of the Abu Dhabi Grand Prix and spurred the McLaren drivers to top 10 finishes. Lando Norris finished fifth with Carlos Sainz in sixth, which was enough to place them third in the constructors championship by seven points over Racing Point. Mercedes and Red Bull finished first and second respectively.

Luxury supercar maker McLaren Automotive remains wholly-owned by the McLaren Group and is not part of this transaction.

INDIANAPOLIS — The first Indy 500 victory for Josef Newgarden also was the richest in race history from a record 2023 purse of just more than $17 million.

The two-time NTT IndyCar Series champion, who continued his celebration Monday morning at Indianapolis Motor Speedway earned $3.666 million for winning the 107th running of the Greatest Spectacle in Racing.

The purse and winner’s share both are the largest in the history of the Indianapolis 500.

It’s the second consecutive year that the Indy 500 purse set a record after the 2022 Indy 500 became the first to crack the $16 million mark (nearly doubling the 2021 purse that offered a purse of $8,854,565 after a crowd limited to 135,000 because of the COVID-19 pandemic).

The average payout for IndyCar drivers was $500,600 (exceeding last year’s average of $485,000).

Indianapolis Motor Speedway owner Roger Penske, whose team also fields Newgarden’s No. 2 Dallara-Chevrolet, had made raising purses a priority since buying the track in 2020. But Penske but was unable to post big money purses until the race returned to full capacity grandstands last year.

The largest Indy 500 purse before this year was $14.4 million for the 2008 Indy 500 won by Scott Dixon (whose share was $2,988,065). Ericsson’s haul made him the second Indy 500 winner to top $3 million (2009 winner Helio Castroneves won $3,048,005.

Runner-up Marcus Ericsson won $1.043 million after falling short by 0.0974 seconds in the fourth-closest finish in Indy 500 history.

The 107th Indy 500 drew a crowd of at least 330,000 that was the largest since the sellout for the 100th running in 2016, and the second-largest in more than two decades, according to track officials.

“This is the greatest race in the world, and it was an especially monumental Month of May featuring packed grandstands and intense on-track action,” Penske Entertainment president and CEO Mark Miles said in a release. “Now, we have the best end card possible for the 107th Running of the Indianapolis 500: a record-breaking purse for the history books.”

Benjamin Pedersen was named the Indy 500 rookie of the year, earning a $50,000 bonus.

The race’s purse is determined through contingency and special awards from IMS and IndyCar. The awards were presented Monday night in the annual Indy 500 Victory Celebration at the JW Marriott in downtown Indianapolis.

The payouts for the 107th Indy 500:

1. Josef Newgarden, $3,666,000
2. Marcus Ericsson, $1,043,000
3. Santino Ferrucci, $481,800
4. Alex Palou, $801,500
5. Alexander Rossi, $574,000
6. Scott Dixon, $582,000
7. Takuma Sato, $217,300
8. Conor Daly, $512,000
9. Colton Herta, $506,500
10. Rinus VeeKay, $556,500
11. Ryan Hunter‐Reay, $145,500
12. Callum Ilott, $495,500
13. Devlin DeFrancesco, $482,000
14. Scott McLaughlin, $485,000
15. Helio Castroneves, $481,500
16. Tony Kanaan, $105,000
17. Marco Andretti, $102,000
18. Jack Harvey, $472,000
19. Christian Lundgaard, $467,500
20. Ed Carpenter, $102,000
21. Benjamin Pedersen (R), $215,300
22. Graham Rahal, $565,500*
23. Will Power, $488,000
24. Pato O’Ward, $516,500
25. Simon Pagenaud, $465,500
26. Agustín Canapino (R), $156,300
27. Felix Rosenqvist, $278,300
28. Kyle Kirkwood, $465,500
29. David Malukas, $462,000
30. Romain Grosjean, $462,000
31. Sting Ray Robb (R), $463,000
32. RC Enerson (R), $103,000
33. Katherine Legge, $102,000

*–Broken down between two teams, $460,000 Rahal Letterman Lanigan Racing, $105,500 Dreyer & Reinbold Racing/Cusick Motorsports

McLaren Racing lands significant investment from MSP Sports Capital

Winner Josef Newgarden earns $3.666 million from a record Indy 500 purse of $17 million