The future of Cadillac F1’s ownership has come into question after one of its owners reportedly secured a major sale.
Mark Walter, CEO and co-chairman of TWG Global, which owns a majority stake in the Cadillac F1 team, recently sold the Los Angeles Lakers for $12.5 billion just a year and a half after buying the legendary basketball franchise.
Walter has been the subject of a massive investigation by the US government and the Securities and Exchange Commission regarding alleged undisclosed loans between multiple of his companies.
Naturally, after selling the Lakers so quickly after buying them, with an investigation pending, questions arose about his need to raise money and whether it may be affecting his ability to own sports franchises.
Talk around Walter has risen after it was widely reported that he may be selling his stake in Chelsea Football Club.
Bloomberg has reported that Walter is selling off his stakes to raise money to pay the troublesome loans and avoid further investigation from the American government.
Naturally, his ownership stake in Cadillac becomes another possible part of his portfolio to sell.
How is Cadillac F1 impacted by Mark Walter’s financial issues
The loans he is under investigation for total multiple billions in alleged fraud, so selling off more of his ownership is not out of the question.
According to the Financial Times, TWG is seeking to refinance loans, restructure companies, and bring in outside investors, all signs of financial uncertainty regarding their financial health.
Any changes in ownership could have major ramifications for the Cadillac F1 team, which was put together on the fly over a few years.
They are just starting to get their legs under them and make progress from race to race, closing the gap on the established teams.
However, General Motors is another big piece of their ownership pie, and as long as they are involved, there is less risk of things changing wildly for a team that is still growing and developing.
Cadillac has already faced one big change this season, with the sacking of former team principal Graeme Lowdon, and at this point, they could benefit from stability.