In the Pit Lane – Is Lawrence Stroll cash-strapped?
News broke last month that Lawrence Stroll was selling his Canadian racetrack Le Circuit Mont-Tremblant. Stroll has owned the circuit, which hosted the Canadian GP in 1968 and 1970, since 2000.
He has invested in the 2.65-mile circuit, including a new timing tower and enhanced medical facilities, valuing the venue at over $10m.
The sale comes on the back of selling his South Florida penthouse, previously owned by Oprah Winfrey, for $20m.
Citing a conflict of interest with his Aston Martin shareholding, he is in the process of selling his $220m collection of vintage Ferraris with the jewel in the crown being the $25m ex-Mark Donohue/Roger Penske Ferrari 512m.
In August 2020, several credible sources in the yachting world said Stroll’s $200m superyacht Faith had been sold to no other than one Michael Latifi!
So, is Lawrence Stroll cash-strapped?
Well, an individual’s net worth can indeed be tied up in assets and not cash, as pleaded by ex-F1 team owner billionaire Sir Richard Branson. Branson faced criticism when at the start of the pandemic, he asked for taxpayer’s help for his Virgin Atlantic airline.
He responded with, “I’ve seen lots of comments about my net worth—but that is calculated on the value of Virgin businesses around the world before this crisis, not sitting as cash in a bank account ready to withdraw.”
Branson has a net worth of $4.2bn with $600m in cash and investments outside his Virgin brands.
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In Stroll’s case, there are substantial assets with include homes in Geneva, London, Quebec, and the Caribbean island of Mustique. Stroll amassed his fortune selling his shareholdings namely Pierre Cardin, Polo Ralph Lauren, Tommy Hilfiger, and the jewel in the crown, Michael Kors, leaving him with substantial resources.
His net worth today stands at $3.2bn, up $1.4 billion since 2012, so the selling of some of his physical assets is probably not because he needs the money.
But it’s not only Stroll that owns Aston Martin
Stroll and the word consortium go hand in hand and like Branson, he is an expert in using other people’s money. Branson’s F1 team was funded by Russian sports car manufacturer Marussia and his Formula E team by Chinese wind power company Envision Energy, and both deals substantially reduced his financial exposure.
Although Stroll’s Yew Tree consortium ploughed £182m into Aston Martin an additional £500m was raised by existing investors including fellow billionaire Juan Abello. This subsequently was not sufficient, and last October Stroll refinanced the company with a £1.3bn package.
This has left Stroll with $1bn of debt sitting on the balance sheet, and the Times newspaper estimates an average interest rate of an eye-watering 16%.
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Facing the huge challenge of both the F1 team, and in particular the car company, Stroll is in all probability selling his ‘toys’ so he can remain totally focused with no external distractions. For now, gone will be the Partying witnessed by his lavish 60th birthday party at Villa Lysis in Capri with 250 guests back in 2019.
A distant memory will be last year’s wedding to long-term girlfriend Raquel Diniz, in which he took over the whole island of Mustique for 3 days. 300 guests were flown in with the select few staying at his $100m house ironically called the Great House!
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Now Stroll realises that his reputation and legacy rest on the success of his F1 team and the Aston Martin car company, both require his absolute attention.
He may have the Midas touch, but helping him to focus will no doubt be the memories of his $100m loss he and business partner Silas Chou suffered in their investment in the Asprey jewellery business 20 years ago.
Garry Sloan is the author of “In the pit lane – F1 exposed” details at inthepitlane.com
Copyright ©2021 Garry Sloan
[Note: The opinions expressed on this website are those of the author’s and do not necessarily reflect the opinions of the editors and/or publishers.]
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