Audi has reportedly raised its offer to buy a stake in McLaren’s Formula 1 unit from $495 million to $718 million, according to a report by Germany’s Automobilwoche.

McLaren and Audi are expected to sign a letter of intent, while a supervisory board will meet to discuss details of the deal later this month. 

Audi’s parent company Volkswagen AG expressed interest in acquiring McLaren last year as a way to tap into the booming Formula 1 business. Formula 1 reported $787 million in revenue in Q4 2021, a 62% increase year-over-year, with viewership reaching 1.55 billion last season. 

McLaren later called off a potential deal, deeming Volkswagen’s initial offer as too low. 

• Volkswagen could separately acquire a stake in McLaren’s road car division, McLaren Automotive.
• Porsche, one of Volkswagen’s 12 car companies and brands, is pursuing a partnership with Formula 1 team Red Bull Racing.

Volkswagen’s interest comes on the heels of a joint development project between McLaren and German carmaker BMW. McLaren and BMW signed a memorandum of understanding on March 24 that will see the two brands develop an architecture for electric sports cars. 

The agreement isn’t binding and could be voided with a deal between McLaren and Audi. 

Pick and Choose 

Volkswagen made a major subtraction from its portfolio last July. The company announced plans to offload its high-end Bugatti brand to Porsche and electric carmaker Rimac.

Porsche will own 45% of the company, while Rimac will own 55%.

The Oakland A’s have hit yet another roadblock to getting their new stadium plans approved.

On Friday, several local organizations filed a lawsuit against the team for its plans to build a ballpark on the Howard Terminal waterfront. The complaint alleges the ballpark’s plans don’t properly meet environmental standards — specifically, the California Environmental Quality Act.

The plaintiffs included truckers, port workers, and cargo operators. 

• In response, Oakland A’s team president Dave Kaval called the lawsuit “absolutely crazy.”
• “It’s an odd way to use an environmental law to prevent the environmental review from being completed,” Kaval reportedly said.

If approved, the $12 billion project would include not only a new baseball stadium, but also recreational parks, commercial buildings, and apartment buildings. 

If the city doesn’t approve the new stadium, it might lose the team. The A’s have reportedly made bids on five Las Vegas sites.

Previous Setback

The news comes just two weeks after local officials used a bureaucratic technicality to slow the project. 

In order for the stadium plans to go ahead, Oakland’s Howard Terminal waterfront area must not be designated for “port use.” However, the Seaport Planning Advisory Committee voted 5-4 (with one abstention) to maintain the area’s “port use” status.

A final decision is expected July 7.

Chelsea FC has narrowed its potential new owner down to four preferred bidders, and a week after it was revealed that Todd Boehly had started discussions about Stamford Bridge’s redevelopment, the Ricketts family has made their own plans public.

The owners of the Chicago Cubs made an eight-point list of promises should they acquire the iconic club, including zero involvement in a European Super League, maintaining diversity, stadium redevelopment, and keeping the team’s branding.

• The promises come on the heels of resurfaced racist emails from TD Ameritrade founder Joe Ricketts.
• Fans gathered in protest of the family’s takeover, despite Joe Ricketts reportedly not being involved in the bid. 
• The Chelsea Supporters’ Trust said 77% of its members do not support it.

The Ricketts are still seen as one of the leading contenders to take over the club from Russian oligarch Roman Abramovich. The bid would reportedly be an all-equity offer.

Additional Investors

The Ricketts’ consortium, which includes Citadel founder Ken Griffin, reportedly added Rock Entertainment Group, which is backed by Cleveland Cavaliers owner Dan Gilbert, as an investor. Gilbert is one of the richest people in America, worth roughly $22.7 billion, and has invested more than $400 million into the Rocket Mortgage Fieldhouse. 

The consortium has added U.S. investment bank Jefferies as an advisor and listed specifications about what its advisory board would look like. The Ricketts added that they would ensure the women’s team will play matches at Stamford Bridge.