It’s a staggering valuation for a Formula One team, but Alpine’s reported $3.5 billion price tag certainly matches the flamboyance and ego of team principle Flavio Briatore.

On paper, a valuation of that size looks difficult to justify. The reality is far more grounded. Take 2024, for example: Alpine reported annual revenue of approximately $320 million, yet still posted a $18 million loss.

Financial experts will undoubtedly use complex valuation models, future growth projections and commercial forecasts to arrive at a figure like $3.5 billion.

But based on Alpine’s current financial performance alone, that valuation appears extremely ambitious. In more conventional circumstances, a valuation closer to $500 million might seem more realistic.

However, Formula One is anything but a conventional business. The key to such eye-watering valuations lies in the sport’s extraordinary global reach.

Formula One has never been more popular than it is today, and much of that growth can be attributed to Netflix’s Drive to Survive. The behind-the-scenes documentary has introduced millions of new fans to the sport, transforming Formula One from a niche motorsport into mainstream global entertainment.

That worldwide popularity has made Formula One enormously attractive to sponsors, broadcasters and commercial partners. The average live Grand Prix attracts around 76.1 million viewers across television and streaming platforms every race weekend. For sponsors, that represents an enormous audience for their brands and products.

You can’t buy that level of global exposure outright—but you can buy a stake in it by owning a Formula One team.

The reason behind Alpine’s soaring valuation is simple: a shareholder is looking to cash out. After two years as an investor, Otro Capital is now seeking to sell its stake in the team.

Renault and Alpine sold a 24% stake to Otro Capital in 2023 for $200 million, placing the team’s valuation at around $900 million at the time. Former Red Bull team principal Christian Horner is reportedly among those to have submitted a bid for the stake.

During a recent media interview, Flavio Briatore revealed:

“No, no, we are more,” he told Darren Cox in The Race Business’s ‘In Conversation With…’ series. We have an offer, we have an offer for the 24 per cent of Otro, the valuation is 3.2 billion.”

“So we have 40% of the valuation of Renault. All [of] Renault is worth 8.3. And we’re working at this 3.5 [billion] valuation. So we’re representing 40% or 50%.”

Sure, to have a partner, of 24%, I expect somebody to give not only the finance, [but to] give some help in technology or whatever, or whatever in finance.

“Renault is negotiating. For the team point of view, for me, it makes no difference. We have Otro, now tomorrow we have somebody else.”

“But in September, I don’t think nothing [will] happen dramatically, because I see it as very difficult for somebody to buy 24% of one company, with no agreement with the majority.

“I never see somebody spend 600 million to buy a minority, to be signed as partner, if you don’t agree with the majority. See what happens.”