Is Lawrence Stroll cash strapped?

Lawrence Stroll

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.

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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.

The return of Aston Martin to Formula One after more than 60 years away is a landmark moment in the history of the sport. Everyone knows what Aston Martin stands for, but the Formula One team will allow us to take the essence of the brand to new places, building on the strong foundations laid by the previous iterations of the team.

Lawrence Stroll
Chairman, Aston Martin Cognizant Formula One™ Team

In Stroll’s case, there are substantial assets with include homes in Geneva, London, Quebec, and the Caribbean island of Mustique. 

Lawrence 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. 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 FormulaE 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%.

Facing the huge challenge of both the Formula 1 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 property ironically called the ‘Great House’!

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.

There are 6 comments

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  1. Gulen

    “Citing a conflict of interest with his Aston Martin shareholding he is in the process of selling his $220m collection of vintage Ferraris…”

    Is this one of or the main reason that Vettel had several Ferraris up for sale earlier?

    I don’t know about but I would feel a bit sad if he had to sell off Ferraris to join AM. He had a really nice collection of cars upp for sale. But I don’t what kind of cars he have apart from the once he sold. And to be correct I didn’t only sell Ferraris sold Bmw z8 and maybe some other non-ferrari as well.

    • JPM

      I don’t think he’s strapped for cash nor believe the conflict of interest bs… Zak Brown also has everything under the sun you don’t hear him selling his stuff because of his Mclaren gig. Could be as simple as it being a good time to sell.

    • Minion

      But how come Lewis has a lot of italian cars? To be fair he says they are investments like art collections and not great to drive. But still.

  2. Charlie

    Doubt it. He rarley seems to go all out into things & most his ventures are backed by others investors too, But he does just enough to maintain a share majority, did the same with Racing Point & Aston Martin. Oddly enough the biggest single cash injections in his wider racing related career were probably just getting Lance into F1 which was very costly, Even at Williams & early Force India days he was paying countless millions for the seat & also had to inject what looked like interest-free loans of over £30m+ into the team from their financial disclosures. That probably hurt more than buying out teams/companies which almost always is partly bough with debt anyway. It will never impact the F1 team though, He will sell anything before he ever lets go of the F1 team, especially long as Lance is there. The team is also totally separate to Aston Martin so its future is way more secure.

  3. Paul Berger

    The man who’s also bought huge plots of land to build a new Aston Martin F1 factory next to the other new factory that’s not even in use yet?

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