A £2bn Bet on a Zero-Point Team: The Real Story Behind FSG's Stake Talks in Cadillac F1

Cadillac F1 sits last in the constructors' championship with zero points, yet its valuation is being pegged at £2.24bn. That is the number that has put Liverpool owner FSG at the negotiating table for a majority stake in the Cadillac F1 team. According to The Guardian, FSG has opened preliminary talks over the deal, although co-owner TWG Global has denied any imminent sale. The most important thing about this transaction is that it is not a racing story but a capital-markets story. There is no hard information in the report about Cadillac's technical capability, driver lineup or race strategy, but the team's valuation and ownership structure expose a side of F1 economics that fans often overlook.

Cadillac entered as a joint venture between General Motors (GM) and TWG Global, with GM running a works power unit programme. The team is debuting in the 2026-era regulations and has yet to score a point in its first season. That is not unusual for a new entrant, as new teams in F1 typically start at the back. But this team's financial position is different. Its valuation is being cited at around £2.24bn, a startling figure for a zero-point team. That gap is a direct consequence of F1's franchise economy, where a team's value is set less by race results than by stable revenue, broadcast rights and guaranteed profits under the cost cap.

F1's revenue has doubled to around $4bn since Liberty Media's 2026 takeover. TV rights bids keep rising and the sport's footprint in the US market is deepening. In this landscape, an F1 team has become a scarce asset with limited supply and rising demand. Cadillac is a unique case in this equation because it has GM's works power unit backing, making it stronger than a pure customer team. As a new team, it also gets more wind tunnel and CFD time under aerodynamic testing restrictions (ATR), a structural advantage for technical development. On the other hand, the team's ownership situation is in flux. US Department of Justice (DOJ) and Securities and Exchange Commission (SEC) investigations are underway against TWG Global owner Mark Walter. TWG has denied the fraud allegations, but the company is selling stakes in its other sports assets.

The biggest complication in this deal is that Cadillac's valuation has run far ahead of its sporting performance. A valuation above £2bn for a zero-point team is direct evidence of F1's franchise-value inflation, where cost-cap rules have made team income certain and decoupled value from on-track performance. For FSG, this is a strategic move, as it has operating experience across sports assets including the Red Sox, Pittsburgh Penguins and RFK Racing in NASCAR. But it has no experience running an F1 team. Managing a new team under F1's cost cap and aerodynamic testing rules is a different kind of challenge, where technical leadership and development continuity matter most.

There is another side to this deal that is often overlooked. TWG Global is in the crosshairs of a fraud investigation, and the FIA and FOM will scrutinise any change of control closely. This is a regulatory risk that can directly affect the team's technical and commercial calendar. A seller under investigation and a buyer lacking F1 operating experience together make this a high-risk deal, even if F1's commercial foundations are strong. Moreover, the equity split between GM and TWG has never been made public, which is the biggest obstacle to understanding the deal's true price and terms. GM's consent or right of first refusal is the single biggest unknown in the whole transaction, because the continuity of the works power unit programme rests on it.

For Liverpool fans, this news brings a separate concern. FSG recently sold a 38 per cent stake in Liverpool and retains an option for a full takeover by 2027. Investment in Cadillac could mean FSG will split its attention and capital across two major sports projects. But it is also possible that the move builds a new financial base for future investment in Liverpool. For now, it is only at the talks stage and TWG has clearly stated that no imminent sale is taking place.

Three things need watching in the weeks and months ahead. First, GM's stance, because if GM is uncomfortable with the change, the entire technical strategy could be affected. Second, any official statement from the FIA and FOM on the change of control. Third, Cadillac's race results, because once the first points arrive, the gap between the team's valuation and its sporting performance may narrow somewhat. The day Cadillac scores its first point, the debate over whether a team can be worth £2bn purely on financial strength will also quieten.