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Hong Kong billionaire Calvin Lo exploring launch of F1 team for 2026

DPA WORLD
Published December 11,2022
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Billionaire Hong Kong businessman Calvin Lo has said he is looking into the possibility of launching a Formula One team in time to race in 2026.

Lo, chief executive of insurance broker RE Lee International, told BBC Sport he was assessing the requirements with the aim of making a decision in the next two months.

"Based on what I'm seeing right now, it's highly aspirational, but it seems like it can be done if all the stars are aligned," Lo said.

"Based on the timelines, the sooner the better, right? It seems even now is a very tight timeline just to put something on the grid by 2026."

The 46-year-old, who has a personal net worth estimated at $1.7 billion, said he would not take an active role in running the team, with his ambitions in the sport "purely financial."

"It's how long you can sustain it," he said. "In this world, finding liquidity for one or two years, relatively it's easy. But can you last for three years… five years? That's the part that the crunching of the numbers comes in.

"I look at it just like an investment. How long do I have to amortize that cost? At what year, at what date, do we need to inject funds if it does not hit certain targets?

"And, of course, the targets must be set realistically. You cannot just go in first year and win everything. The numbers must be very conservatively managed. I think that's the tricky part."

Lo would face several major hurdles before getting a car onto the grid. Any new team must pay $200 million in compensation to the existing teams for the loss of income that would be caused by splitting the prize money between more teams.

Lo would also need to convince F1 his team could become competitive – something that has so far stopped American racers Mario and Michael Andretti getting the go-ahead for their own plans. As such, it is possible Lo will instead invest in an existing team.

"We have a few parties that are trying to work with us, I suppose, who supposedly will help us navigate all that," Lo said. "I have no idea how the intricacies of the F1 world are. And I think, if anything, that will be the biggest hurdle to form a new team.

"Maybe it's easier just to invest in a current team. That's the easiest way – the foundation is set, it is already up and running."