Finance expert issues verdict on Tottenham’s chances of launching F1 team amid Liberty Media links

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The link between Formula 1 and professional football has existed for some time but potentially has never been explored to the fullest.

More than 10 years ago, Sauber had a livery that featured Chelsea’s badge on the front of their car.

However, Premier League teams are quickly trying to build up networks of teams across the sport and it won’t be long before they start exploring options further afield.

F1 Oversteer has spoken exclusively to sporting finance expert Adam Williams about the growing opportunities in Formula 1 for football teams from the Premier League and beyond.

One of the closest relationships is currently with Tottenham Hotspur and their brand-new stadium.

At the beginning of the 2023 season, Formula 1 signed a 15-year deal with Tottenham to ‘identify and foster a new generation of motor sport talent’.

That includes the opening of a go-kart track underneath the Tottenham Hotspur Stadium after Liberty Media were once linked, via Football London, with potentially investing in Spurs.

Williams believes that Tottenham – and other team owners exploring business models beyond football – will have one eye on Formula 1.

Andretti have proved that earning a place on the F1 grid is easier said than done.

Alpine’s future in Formula 1 is also in doubt – even if staff at Alpine’s Enstone factory have been assured of their future in the sport – and given the money in Premier League football these days, they would have the means to enter the world of motorsport if they wished.

Football’s relationship with Formula 1 and Liberty Media examined

Speaking about football’s view on Formula 1 as an investment opportunity, Williams said: “We’ve seen increasing integration between football and all other sports in the last decade or so.

“I think that trend has accelerated over the last few years as private equity has continued to formalise its investment in football.

“They think there is a new plane of revenue to unlock, particularly by monetising European football clubs’ IP in non-European markets.

“In this sense, football has a lot in common with Formula 1. They are both desperate to reach new audiences – and football wants its Drive to Survive moment.

“Traditionally, other sports have been seen as the competition, but I think owners are now realising that collaboration can lead to collective success.

“F1 owners Liberty Media are the most valuable sports empire in the world, but they haven’t yet made a major direct investment in football. I don’t think that will be the case for much longer, however.”

Tottenham’s relationship with Liberty Media creates Formula 1 opportunities

Liberty Media have modernised Formula 1 since their takeover and aren’t afraid of looking at things differently from how the likes of Bernie Ecclestone have run the sport before.

Talking specifically about the relationship between English football and Liberty Media, Williams continued: “Liberty have formed a commercial link with Tottenham Hotspur through F1 Drive, an electric go-karting experience at the North London club’s stadium.

“That deal lasts for 15 years and I think is emblematic of the faith the two sports have in their respective commercial appeals.

“There were also stories about Liberty potentially being in line to buy a stake in Spurs last year.

“We know the club is looking to sell a minority stake, and they are one of the most involved clubs when it comes to other sports, with the NFL, boxing and so on.

“I’ve spoken to industry people who think Spurs’ ultimate aim is to become a multi-sports club. Could they, or another club, launch an F1 franchise in future? I don’t think it’s inconceivable.

“Historically, there was the Superleague Formula, which was backed by football clubs and seen as a rival to F1. That was ultimately unsuccessful, but I suspect any venture football made into F1 or vice versa would be seen through a far more collaborative lens these days.

“Newcastle United owners the Saudi Public Investment Fund are also involved in F1 and attempted to buy the institution outright last year. They have a stake in Aston Martin too.

“PIF’s aims are more geopolitical, but again you can see that football and F1 are getting more closely tied together.

“Then there is the Red Bull links through their stable of football clubs. We’ve seen a lot of cross-promotional stuff since they bought a stake in Leeds United earlier this year, for example.

“And while ownership becomes increasingly concentrated across both sports, I can only see the bonds getting tighter.”