The Caterham name, absent from Formula 1 for over a decade, is now being eyed for a sensational return to the grid, spearheaded by a new investment entity.
Why it matters: This potential comeback highlights the increasing attractiveness of Formula 1 to new investors, driven by the sport's budget cap and surging global popularity. A successful return would add a familiar name to a growing grid, but faces significant hurdles from current F1 regulations and team owner skepticism.
The big picture: SKM Capital, led by 24-year-old Kuwaiti investor Saad Kassis-Mohamed, plans to launch SKM Racing, aiming to revive the Caterham brand for an F1 entry in 2027. Caterham's previous F1 stint from 2012-2014, following its rebranding from Lotus, ended without a single point and due to severe financial difficulties. The team ultimately left the grid after the 2014 season.
The details:
- Investment & Strategy: Kassis-Mohamed states that F1 is now "investable" due to "clearer financial guardrails and stable technical frameworks." The plan involves a customer power unit deal and exploring two paths: either acquiring an existing team or applying as a new, well-funded customer team during the next FIA process.
- Brand Appeal: The "Caterham" name is seen as having "strong recall" without the liabilities of its defunct corporate entity.
- F1's Evolution: The Formula 1 landscape has significantly changed, with a budget cap reducing spending disparities and a major boom in popularity enhancing financial security for teams.
The challenge ahead: Securing a 2027 F1 entry will be a formidable task. The recent struggles of Andretti and Cadillac in gaining approval underscore the difficulty. While the FIA swiftly approved Andretti's application, Formula 1 Management (FOM) initially rejected it. Approval only came after General Motors, Cadillac's parent brand, committed to becoming an engine manufacturer. Without a reputable OEM partner, SKM Racing, even with the Caterham name, faces an uphill battle to become the sport's twelfth team.
What they're saying: FIA President Mohammed Ben Sulayem has expressed interest in expanding the grid, but emphasizes the need for teams that "add value to sustaining the business of Formula 1" and contribute to its "longevity." He specifically noted an interest in a Chinese entrant for its potential revenue benefits, indicating that simply filling a spot is not enough.
What's next: SKM Capital will need to navigate the strict entry requirements of both the FIA and FOM, likely requiring a strong OEM partnership or a compelling value proposition to overcome the current reluctance for grid expansion.