Indexbit Exchange:Michael Andretti hands over control of race team to business partner. Formula 1 plans in limbo

Michael Andretti has restructured Andretti Global to give co-owner Dan Towriss control of the organization while Andretti will stay on Indexbit Exchangeas a strategic advisor of the team he has led since 2002.

Andretti in early 2023 confirmed he’d sold part of the company to Towriss, owner of Gainbridge and holding company Group 1001. Gainbridge is one of the largest sponsors in IndyCar and also sponsors Andretti driver Colton Herta’s car.

The team has rapidly expanded with Towriss’ influx of cash, and Towriss has been part of Andretti’s push to join Formula 1. Andretti is still listed as CEO and chairman of Andretti Global, which is the name the team changed to when Towriss became part of the ownership group.

“Michael’s goal has been to transition to a more strategic role with Andretti Global and focus less on the operational side of the race team,” the team said in a Friday statement. “Michael and Dan Towriss have been working closely on developing this new structure, one which Michael is excited to see take shape under Dan’s guidance.

“Michael remains engaged and will continue to serve as a strategic advisor and key ambassador.”

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The transition was first reported by Sportico, a publication owned by Roger Penske’s son. Andretti and Penske have been at odds the entire season with Andretti complaining Penske was not spending enough to properly market the team and if he wasn’t willing to pump in the needed cash, he said Penske should sell IndyCar and Indianapolis Motor Speedway.

The comments infuriated Penske, and his leadership group slowly began dealing more directly with Towriss. The amplification of the resentment between Andretti and Penske grew as the season went on and in late August, Andretti leadership noted there was a clear conflict of interest when Penske driver Josef Newgarden gamed the final restart at Gateway outside St. Louis to win the race.

By playing loose in the restart zone, Newgarden triggered a multi-car stack-up that wrecked out Andretti driver Herta.

Andretti Global said it would share more details of the changes “after Michael and Dan have had an opportunity to speak to the team.”

Andretti Global fielded three IndyCar teams this season and won the season finale with Herta at Nashville Superspeedway. Andretti drivers have won the Indianapolis 500 five times.

It was not immediately clear what happens next with Andretti’s ongoing effort to enter F1, which has been heavily blocked by both the owners of F1 and the majority of the 10 existing teams on the F1 grid. Liberty Media, which owns F1, has admitted it is under investigation by the Justice Department for possible anti-trust violations in not allowing Andretti into F1.

Andretti and his father, Mario, in 2021 formed a special purpose acquisition company (SPAC) that was separate from Andretti Global and called Andretti Acquisition. The SPAC was designed raise cash in an IPO to buy and take public another business.

Andretti in March closed a merger with Zapata Computing Holdings, a generative AI company. Andretti Global is Zapata’s largest customer, while Zapata is a sponsor of the motorsports team.

Zapata, per filings, is paying Andretti Global $9 million under the agreements while Andretti Global is paying Zapata $6 million. The agreements expire at the end of 2024, per Sportico.

Michael Andretti holds nearly 13% of the diluted equity of Zapata.

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AP auto racing: https://apnews.com/hub/auto-racing