Investing in Motorsports

High-net-worth individuals and private equity firms are increasingly acquiring stakes in racing teams. Liberty Media’s acquisition of Formula 1 is a prime example of how media-savvy ownership can unlock value.

Smaller series like Formula E, IndyCar, and GT racing offer lower barriers to entry and significant growth potential—especially as electric racing gains traction.

Some motorsport teams are part of larger corporate entities that are listed on public stock exchanges. These publicly traded teams offer investors a way to gain exposure to the motorsport industry through the purchase of shares, just like any other listed company.

When a motorsport team is publicly traded, it usually indicates that the team is:

• A division of a larger automotive or entertainment company, or
• Operated under a holding company that manages both racing and commercial activities.

Investing in these companies allows shareholders to benefit from the financial performance of the racing team, as well as related business segments such as luxury car manufacturing, merchandising, licensing, and media rights. These stocks often reflect a hybrid investment profile—combining the brand prestige and global visibility of motorsports with the financial fundamentals of a traditional business.

Motorsports offer global visibility, especially in emerging markets. Investors can back marketing agencies, sponsorship platforms and branding consultancies.

With motorsports, particularly Formula 1 and MotoGP, having massive international audiences and races broadcast in over 180 countries, investors can receive great amounts of visibility on social media and television.

Investors can now also explore Esports and racing platforms which are expanding also.

Racetracks, motorsport parks, and driving experience centres are increasingly viewed as appreciating assets. Facilities that serve multiple functions—such as event venues, corporate hospitality hubs, and automotive R&D testbeds—offer diverse and resilient revenue streams, making them attractive to investors seeking both capital growth and operational income.

Rare race cars, vintage helmets, signed race gear, and trophies are seen as tangible assets with historical and emotional value.

Tax considerations for collectibles

• When purchasing a race car, if the car is a racing vehicle (e.g. single-seat or not suitable for private use), it is not exempt from CGT. However, it may still qualify as a “wasting asset” (with a life expectancy under 50 years), which can exempt it from CGT unless it was used in a business where tax allowances were claimed.
• Collectible items such as helmets are typically subject to CGT if sold for more than £6,000. However, if sold for less than this threshold, they may be exempt. Gains above this may be taxed at 10% or 20%, depending on the seller’s income tax band.
• Collectibles are included in the value of an estate for IHT purposes, and their market value at the time of death is used to calculate IHT due.

 Please note, it is important to ensure that you consider HMRC’s badges of trade to determine whether you are ‘trading’ or collecting items as a hobby. Read our article on the badges of trade here…

Motorsports is a constant driver of technological innovation, offering opportunities to back companies at the forefront of performance and sustainability. Key areas of development include aerodynamic components that enhance speed and efficiency, electric powertrains that align with the global shift toward electrification, and sustainable fuels designed to reduce the sport’s environmental impact.

These technologies are not just shaping the future of racing but also have broader applications in the automotive, aerospace, and energy sectors, making them attractive targets for forward-thinking investors.