McLaren Racing CEO Zak Brown has sent a formal letter to FIA President Mohammed Ben Sulayem requesting stricter governance over multi-team ownership in Formula 1, a structure currently allowed under regulations that permit a single controlling entity to hold stakes in more than one grid entry. The letter, filed in January, argues that existing ownership rules create competitive imbalances and lack the structural safeguards enforced in the NFL, Premier League, and Major League Baseball.

The timing is commercial. Formula 1's ten teams are now valued at a combined $17bn following Liberty Media's 2016 acquisition, with individual franchises trading between $1.2bn and $2bn in recent private transactions. Red Bull GmbH currently operates two entries—Red Bull Racing and RB Formula One Team (formerly AlphaTauri)—a vertical integration that Brown's letter argues violates competitive equity principles. The Austrian energy-drink company's dual ownership allows technical crossover, personnel rotation, and shared wind-tunnel data within regulatory boundaries that other team operators view as strategically porous. Red Bull Racing's chief technical officer Pierre Waché simultaneously advises RB's aerodynamics team; Racing Bulls' 2024 driver lineup included Daniel Ricciardo, who returned mid-season after a Red Bull-funded reserve role.

Brown's letter does not call for immediate divestment but requests FIA regulatory review ahead of the 2026 power-unit regulations, when Ferrari, Mercedes, Honda, and Renault will supply engines to grid entries under a cost-capped technical framework. The ask mirrors governance changes adopted by English football's Premier League in 2008, which barred common ownership after Red Bull's parallel holdings in RB Leipzig and Red Bull Salzburg prompted UEFA scrutiny. Major League Baseball enforces a single-entity rule; the NBA permits minority stakes across teams but prohibits board-level control. Formula 1's existing Concorde Agreement—signed through 2025—does not restrict multi-team ownership, though it limits technical collaboration and mandates separate operational budgets under the $135m annual cost cap introduced in 2021.

The strategic pressure comes from McLaren's competitive position. The Woking-based team finished fourth in the 2024 Constructors' Championship, securing $140m in prize money and commercial rights revenue, but remains outside the technical partnership ecosystem that binds Red Bull's two entries. McLaren operates as a standalone constructor with Mercedes power units, lacking the junior-team pipeline that Red Bull uses to develop drivers and test aerodynamic concepts in live race conditions before promoting them to the senior squad. Liam Lawson, currently a Red Bull Racing reserve, competed in five races for RB in 2024; his data migrated internally without IP restrictions. Brown's letter argues this structure grants Red Bull a regulatory advantage equivalent to running a third car under a separate commercial banner.

The FIA has not publicly responded, but three people familiar with the governance process say Ben Sulayem's office is reviewing ownership frameworks used in other global sports leagues, with particular attention to Serie A's 2018 ban on cross-ownership after the Chinese consortium Suning Holdings controlled both Inter Milan and Jiangsu Suning. One technical working group member said the review will likely extend into Q2 2025, with any proposed rule changes requiring unanimous approval from all ten team principals under the Concorde Agreement's governance clause—a threshold that effectively grants Red Bull veto power.

Sponsor executives are watching the ownership debate for signals about grid stability and franchise valuation. One global beverage brand with a $60m annual F1 spend said common ownership introduces "structural confusion" when negotiating activation rights, particularly in markets where Red Bull and RB compete for the same local partnerships. A family office currently sizing a minority stake in an unnamed team said ownership clarity is a diligence priority, noting that MLB's single-entity rule increased franchise valuations by 18% between 2010 and 2015 by eliminating strategic arbitrage between sister clubs.

Brown has a commercial motive. McLaren is finalizing a $800m investment from Ares Management and MSP Sports Capital, funds that require clear competitive moats and governance predictability. The team is also negotiating a title sponsorship renewal with Google, a deal that hinges on McLaren's ability to challenge for podiums without structural disadvantages. If the FIA declines to act, Brown has suggested McLaren could pursue governance reform through the commercial rights holder, Liberty Media, which has historically avoided team ownership disputes but retains contractual authority over Concorde Agreement amendments.

Watch for FIA technical regulations published in March, when the 2026 engine specifications are finalized. Red Bull's response will arrive through team principal Christian Horner, who sits on the F1 Commission and has previously defended multi-team ownership as a driver development necessity. NASCAR faced a similar debate in 2000, when Rick Hendrick's four-car operation dominated restrictor-plate racing; the series never implemented ownership caps, and Hendrick Motorsports remains the grid's most valuable franchise at $500m. Brown's letter is a negotiating position, not a ultimatum, but the FIA's calendar is narrowing. The 2026 regulation freeze takes effect in January 2026.