Racing Point is set to become the Aston Martin Formula 1 team beginning in the 2021 season as part of the new investment deal involving Lawrence Stroll.
Beginning in 2021, Aston Martin will compete in Formula 1 as a works team for the first time since 1960, as Racing Point is set to be rebranded as the Aston Martin Formula 1 team following the 2020 season.
Lawrence Stroll, the Canadian billionaire investor who led a consortium to purchase Force India back in August of 2018 before renaming the team Racing Point, has again led a consortium to make a major purchase.
The board of Aston Martin Lagonda Global Holdings plc board met on Thursday night, and it was confirmed this morning that a Stroll-led consortium has bought a 16.7% (one-sixth) stake in the British independent manufacturer of luxury sports cars and grand tourers.
Aston Martin currently serves as the title sponsor for the Red Bull Racing team and has done so since the start of the 2018 season.
But in filings detailing the investment that were lodged with the London Stock Exchange, it was discussed that the company view an enhanced involvement in Formula 1 as essential, and following the 2020 season, Aston Martin will no longer serve as the title sponsor of the Milton Keynes-based team.
The initial deal is a 10-year deal, per the legal documents involved. Here is part of what these documents had to say, according to Motorsport.
“Aston Martin Lagonda has entered into a legally binding termsheet under which the Racing Point F1 team will become the Aston Martin F1 works team with effect from the 2021 season. This agreement is for a 10-year initial term and Aston Martin Lagonda will receive an economic interest in the team.”
Here is what Lawrence Stroll had to say about this major investment.
“On completion of the £500m of fundraising I look forward to working with the Board and management team in Aston Martin Lagonda to review and improve each aspect of the company’s operations and marketing; to continue to invest in the development of new models and technologies and to start to rebalance production to prioritize demand over supply.
“I, and my partners, firmly believe that Aston Martin is one of the great global luxury car brands. I believe that this combination of capital and my experience of both the motor industry and building highly successful global brands will mean that, over time, we fulfill Aston Martin Lagonda’s potential.”
Here is what Aston Martin CEO Andy Palmer added.
“Mr. Stroll brings strong and proven expertise in both automotive and luxury brands more widely which we believe will be of significant benefit to Aston Martin Lagonda. We have also announced plans to leverage a new motorsport collaboration with Racing Point to enhance the execution of the plan. I would like to thank Red Bull Racing, who we will continue to sponsor this year, for their partnership and support in us being able to say this today.”
Here is what a Red Bull statement read.
“Following the Aston Martin Lagonda announcement earlier today, the Team can confirm that the manufacturer will remain title partner until the end of the 2020 season but this contract will not be extended past the end of the current term.
“Red Bull Racing has agreed to release Aston Martin from its Formula One exclusivity clause which in turn has allowed it to generate the necessary investment required to re-finance and pursue alternative opportunities within the sport.
“We thank Aston Martin for their support over the past four years in which time we have achieved 12 wins, 50 podiums and six pole positions together. We wish Aston Martin’s employees and shareholders all the best for the future and our focus remains on working together throughout the 2020 season and ending our partnership on a high.”
Racing Point’s current drivers are Sergio Perez and Lance Stroll, Lawrence’s son. Perez is one of four drivers who is signed through beyond the 2020 Formula 1 season, as he signed a three-year contract extension through the 2022 season back in August.
While Lance is not under contract for 2021 yet, it is pretty much a foregone conclusion that he won’t be axed from his father’s team. The team also have an engine deal in place with Mercedes for the foreseeable future.