Michael Andretti Set to Leave Ownership of Andretti Global

The motorsports corporation Michael Andretti has run since 2002 is selling its ownership position, per three persons with knowledge of the transaction.

Michael Andretti is identified as the CEO and chairman of Andretti Global. His racing teams have won the Indianapolis 500 five times, and he is the son of the late driver Mario Andretti.

Less than a year after executive Dan Towriss and his holding firm Group 1001 acquired ownership in the Andretti motorsports business, the company changed its name to Andretti Global in 2023. Part of the money went toward financing a possible Formula One team.

Andretti has been considering leaving his operating position for some time.

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In a statement to Sportico, Andretti Global said that Michael’s objective has been to shift to a more strategic role with the company and to concentrate less on the operational part of the race team. “He and Dan Towriss have been working on a possible structure, and they’ve come to a path that Michael Andretti delighted with and think will lead to a bright future. Michael Andretti is still in a committed relationship and will remain a vital spokesman and advisor. After Michael Andretti and Dan have had a chance to address the team, we will have additional information to give in the upcoming weeks.

F1 Andretti Global submitted a bid for an expanded F1 team last year. Andretti was public about his desire to sign a team, which hurt the organization’s chances of getting the approval of the usually coy F1 governing body. No new teams added to F1.

Towriss waited to answer a request for comment.

Andretti and his father, Mario, established Andretti Acquisition in 2021 as a special-purpose acquisition business apart from Andretti Global.

An IPO-funded company that subsequently looks to acquire another company and take it public is known as a SPAC.

This year, in March, Andretti and the generative AI startup Zapata Computing Holdings completed their merger. Andretti Global is Zapata’s biggest client, according to information he disclosed in a filing two weeks ago. Zapata also sponsors the racing team.

According to the agreements, Zapata pays Andretti Global $9 million, and Andretti Global pays Zapata $6 million, with $1 million deducted if Zapata doesn’t pay the racing team $1 million.

The agreements are all set to expire at the end of 2024. Zapata concluded Thursday’s trading at $0.33. Andretti’s SPAC first went public with the stock at $10.

Michael Andretti still owns approximately 13% of the company’s diluted equity, which indicates his continued financial involvement in Zapata.