More than ten years after exiting Formula 1, the Caterham name is preparing for a possible comeback to the F1 grid. The revival is being driven by SKM Capital, an investment firm led by 24-year-old Kuwaiti investor Saad Kassis-Mohamed, who aims to establish a new team called SKM Racing that will resurrect the historic Caterham brand.
Since Caterham last competed in 2014, Formula 1 has undergone significant changes, including the introduction of a budget cap that narrows the gap between wealthier and smaller teams. The sport’s growing global popularity also brings increased financial stability for new entrants. Kassis-Mohamed is targeting the 2027 season to make Caterham’s return, planning to secure a customer power unit partnership for the effort.
F1 now operates with clearer financial guardrails and stable technical frameworks, making the category investable. We like the intersection of elite engineering, a global platform, and predictable cost governance,
said Kassis-Mohamed in an interview with Sportstar.
The Caterham brand still holds recognition among motorsport fans, and acquiring its license enables SKM Racing to jumpstart marketing efforts, avoiding complications tied to the team’s previous corporate entities or debts.
Our plan involves two options: a change of control transaction in an existing entrant or applying in the next FIA process as a compact, well-funded customer team with long-term PU supply.
The background behind Caterham’s initial exit from F1
Caterham initially entered Formula 1 in 2012 after Tony Fernandes acquired Caterham Cars and rebranded his existing F1 team, which had competed as Lotus in the prior two seasons. Despite the rebranding, the team struggled competitively and did not score any championship points. Financial difficulties ultimately forced the team to withdraw after the 2014 season.
In 2021, Japanese automotive group VT Holdings purchased Caterham Cars, but the team itself remains absent from the F1 paddock. Kassis-Mohamed now aims to bring Caterham back by leveraging a customer engine agreement and competing under the new identity of SKM Racing.
Challenges ahead for securing a spot in the 2027 F1 grid
Despite the ambitious plans, obtaining official entry to the Formula 1 championship in 2027 will face significant hurdles. Kassis-Mohamed has expressed respect for the thresholds and procedures imposed by the FIA and Formula 1’s governing bodies, acknowledging the complexity of joining the elite racing series.
The experience of other recent hopefuls illustrates the difficulties involved. For example, Andretti and Cadillac underwent a lengthy approval process. While the FIA quickly accepted its application, Formula One Management initially rejected the bid. Only after Michael Andretti withdrew and General Motors, Cadillac’s parent company, committed to becoming an engine manufacturer did FOM approve Cadillac’s entry for the 2026 season.
Without backing from a major original equipment manufacturer (OEM), it is unlikely that SKM Racing’s revival of the Caterham name alone would secure a grid slot as the 12th team in Formula 1.
The FIA is open to expanding the grid but appears more interested in attracting a Chinese team, following General Motors’ entry as an engine supplier representing American industry. FIA president Mohammed Ben Sulayem has emphasized the importance of the right team joining, stating that it must bring added value to the sport’s long-term business sustainability rather than simply expanding the number of teams.
We have an 11th team. I believe we should look into the performance of the 11th team, and then, if there is a Chinese [bid], and I will speak on behalf of them now in front of you, they [FOM] will agree to that, because it is about sustaining the business.
—Mohammed Ben Sulayem, FIA President
He added that if a Chinese team were approved, it would enhance the sport’s revenue and global reach. Ben Sulayem also expressed caution against adding teams merely to fill numbers, reinforcing that any new entrant must contribute to the longevity and health of Formula 1.
For us, the [12th] team has to add value to sustaining the business of Formula 1, and the business of Formula 1 is not about the income, it’s about the longevity of the championship itself.
—Mohammed Ben Sulayem, FIA President
What the future holds for Caterham and Formula 1’s grid expansion
SKM Racing’s attempt to reinstate the Caterham name for the 2027 season comes at a time of evolving regulations and increased financial discipline that could benefit smaller teams. The introduction of budget caps and standardized power units aims to create a more level playing field, making ownership and investment in new teams more viable.
However, the FIA and Formula One Management are focusing on strategic growth rather than expanding the grid for expansion’s sake. The priority remains finding credible, well-funded teams that can sustain long-term participation and add commercial and competitive value to the championship.
For Caterham, success depends on navigating the highly selective entry process while securing strong technical partnerships and investment backing. Should SKM Racing overcome these challenges, the Caterham F1 2027 comeback would mark a remarkable revival for a team once forgotten, revitalizing a brand with motorsport heritage and meeting the sport’s modern demands.