Aston Martin Formula 1 will replace Racing Point from 2021 as part of a new investment deal involving Lawrence Stroll and the car manufacturer.
Confirmation of the transaction was made official today after a consortium led by Stroll bought a 16.7% stake in Aston Martin, totalling £182 million.
The documents, lodged with the London Stock Exchange, ensured that Aston Martin would have ‘enhanced F1 involvement’ as a result of the investment.
Stroll stated: “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 prioritise 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 fulfil Aston Martin Lagonda’s potential.”
The text mentions that the agreement is initially for 10 years with the car brand receiving ‘an economic interest in the team’ whilst also having Racing Point’s F1 team rebranded in 2021 for four years.
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.
The reason for Aston Martin’s delay is to see out the manufacturers current title sponsorship with Red Bull, which expires at the end of the 2020 season.
In response to the news Red Bull, via a separate statement, replied: “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.”
While British firm’s title sponsorship with Red Bull is set to end, it was also revealed that the separate deal between the two companies involving the Valkyrie hypercar will continue.
Insider Insight: Aston Martin is a huge brand in terms of popularity and so its involvement as a team in 2021 will certainly bring more eyes to the sport. Stroll should also personally benefit from this sale as his F1 team now has a reputable name and identity which will increase fan engagement.