Actor Ryan Reynolds announced a significant investment in the esteemed Formula 1 racing team Alpine.
Reynolds and a group of investors including Otro Capital, RedBird Capital Partners and Maximum Effort Investments made the decision shortly after Renault S.A. ADR, the parent company of Alpine, required a massive $200 million loan repayment. The investment group also includes fellow actors Rob McElhenney, and Michael P. Jordan, the star of the popular "Creed" franchise and actor in films such as "Wild Panther."
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Alpine was facing financial woes despite turning profits, and its auditors KPMG International Ltd. pushed the team to clear off a deficit of $35 million. The team turned to Reynolds and other investors as they sold the team's shares for $218 million, giving them the capital needed to pay Renault and move forward with a reinvigorated team that included some star power. Reynold's involvement also underscores Formula 1's broader push toward U.S. partnerships and viewers. A highly anticipated Formula 1 race — the Las Vegas Grand Prix — will occur on the Las Vegas Strip in mid-November.
This Formula 1 development ignited excitement among racing enthusiasts and fans of Reynolds. This venture marks another investment move for Reynolds, who has made waves in the business world with his stakes in Mint Mobile and his involvement in the wildly popular Wrexham AFC. In 2020, Reynolds saw tremendous success from the sale of Aviation American Gin, which he and his partners sold to beverage giant Diageo plc for $610 million.
From Snarky Actor To Global Investor
Renowned for his acting prowess and witty charisma on the big screen in movies such as "Deadpool" and "Free Guy," Reynolds has proven himself to be an astute businessman off camera. Beyond his recent investment in Alpine, Reynolds is also a part-owner of Mint Mobile, a wireless service provider in the United States. Reynolds became a partial owner and the face of the company, leveraging his persona and fame to create buzz and reinvigorate the brand.
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Reynolds made headlines in the world of football when he, along with McElhenney, purchased Wrexham AFC, a football club in Wales, in 2021. McElhenney is the co-creator of the long-running cult comedy series "It's Always Sunny in Philadelphia." He and Reynolds purchased the rights to manage the football team for $2.5 million. They bought the club from the Wrexham Supporters Trust, which is an ownership group of fans who purchased the club in 2011. In 2020, more than 98% of the trust members agreed to sell the club to Reynolds and McElhenney.
Their acquisition captured global attention and sparked renewed hope for the historic club's future. Reynolds and McElhenney have since displayed their passion for the sport and their commitment to revitalizing the team, a journey chronicled in the sports documentary program "Welcome to Wrexham."
A Strategic Alpine Move
Reynolds and the consortium's decision to invest in the Alpine racing team represents a calculated move, both financially and strategically. As a passionate motorsports enthusiast, Reynolds recognizes the immense potential and allure of Formula 1. With Alpine's racing heritage and its recent successes on the track, the team presents an opportunity for Reynolds and the other investors on the team to be a part of motorsports and expand their portfolios.
The investment strengthens Alpine's financial position and brings global attention and star power to the team. This could create opportunities for other lucrative partnerships and sponsorships. Reynolds and the others can also bring a fresh perspective to the team's marketing and branding efforts, based on his previous success with Wrexham AFC, Mint Mobile and Aviation Gin.
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