An F1 team gave Ryan Reynolds an ownership stake in their team for $0 — and the free deals are brilliant way for growing franchises to get a PR boost
- Ryan Reynolds is expanding his sports portfolio, and it reportedly cost him nothing.
- He and Rob McElhanney have driven their success with Welsh soccer club Wrexham into an ownership stake in Alpine F1 team.
Ryan Reynolds's investment in a Welsh soccer club has been so successful that now sports teams are giving him and his partner Rob McElhenney ownership stakes for free.
Reynolds and McElhenney partnered with American investment firms Otro Capital and RedBird Capital Partners to buy 24% of the Alpine Formula One team. The combined group paid $220 million (£171 million) for the piece, based on a $900 million valuation (£700 million). Reynolds and McElhenney's investment firm, Maximum Effort Investments, which also includes actor Michael B. Jordan as a partner, now own 2-3% of the team, which would be valued at $18-27 million. But according to Nick Harris and Alex Miller of the UK Daily Mail, Reynolds and McElhenney got in for free.
That's right: zip, $0, nada.
According to the report, the payoff for Alpine will come in the form of sweat equity from the Hollywood stars. Reynolds and McElhenney are expected to contribute "their storytelling prowess, and perhaps a documentary series," similar to what they have achieved with the Wrexham football club in exchange for the stake.
Reynolds and McElhenney purchased the struggling soccer club in 2020 for about $2.5 million (£2.0 million). Following the success of the team and the docuseries "Welcome to Wrexham," it is now believed that the club's value has tripled in three years.
Having famous owners to help promote a sports team is not new. Jay-Z once owned a piece of the NBA's Brooklyn Nets, and Jennifer Lopez was among several celebrity owners for the NFL's Miami Dolphins. However, in those cases, the celebs were given paltry pieces of the team, and they actually paid for them. When Jay-Z sold his portion of the Nets, it was only worth $355,000.
Just giving a celeb or athlete ownership stake appears to be a growing trend and a brilliant strategy to get some free or cheap PR.
Soccer legend Lionel Messi was promised a piece of the Inter Miami team as part of his deal to join MLS. Two-time golf major champion Jon Rahm recently signed an extension with Callaway Golf, which included equity in the TopGolf Callaway Brands, according to Golf Digest.
Does your favorite sports team have a famous owner yet? If not, don't worry, it will probably happen soon.