user icon

McLaren considering sale of minority stake in F1 team

  • Published on 18 Jun 2020 09:10
  • comments 4
  • By: Coilin Higgins

It has been revealed that McLaren is considering selling a minority stake of its team in order to be able to get through the financial burden of the COVID-19 crisis.

The crisis has hit multiple F1 teams financially, with McLaren recently confirming the loss of 1,200 jobs across the group as it looked for a way to lessen costs.

It has been noted that McLaren also recorded a loss of £133 million across it's racing and road car divisions over the first three months of 2020. 

According to Sky News, McLaren raised the idea of a minority stake sale during recent discussions with the team's lenders and advisors.

Sources have confirmed that the prospect of the sale is only at a 'conceptual stage' and was one of multiple other options that was discussed in order to benefit the team.

Last March, the team benefited from a £300 million equity boost by the owners of McLaren, a group of investors led by Mumtakalat, Bahrain's sovereign wealth fund.

Reports say that it has told lenders of the team that the current shareholders were not currently willing to inject any more equity into McLaren.

It is understood that any such transaction or sale by the team would result in a loss of ownership of McLaren between 20 to 30%, but could generate tens of millions of pounds for the team.

These funds would help towards McLaren's CEO Zak Brown's ambitions of getting the team back to the front of the grid.

One source also suggested that such a sale could allow the team to comfortably operate at the budget cap level when it is introduced into F1 next season.

The budget cap in question will start at $145 million for all teams in 2021, with a gradual drop to $135 million in the coming years.

Replies (4)

Login to reply
  • Imagine the level struggle Williams F1 must be going through with a nonexistent revenue stream.

    • + 0
    • Jun 19 2020 - 06:11
    • Snooky

      Posts: 121

      Just what I was thinking, if McLaren are struggling then how are Williams still going... having said that Williams haven’t just paid for a top of the line wind tunnel soooo

      • + 0
      • Jun 20 2020 - 22:15
  • RogerF1

    Posts: 501

    Chinese money would seem likely although that would grate with me, (for many reasons).

    • + 0
    • Jun 19 2020 - 12:11
  • What choice do they have? It's selling or losing.

    • + 0
    • Jun 20 2020 - 12:44

BE Grand Prix of Belgium

Local time 

BE Grand Prix of Belgium

Local time 

Related news

World Championship standings 2022

Show full world champion standings

Test calendar

See full test schedule

Give your opinion!

Will Bottas challenge Hamilton for the world championship in 2020?

Driver profile

  • Team -
  • Points -
  • Podiums -
  • Grand Prix -
  • Country US
  • Date of b. Nov 7 1971 (50)
  • Place of b. Los Angeles, California U.S., US
  • Weight 0 kg
  • Length 0 m
Show full profile

Team profile

Show full profile

Formula 1 Calendar - 2022

Date
Grand Prix
Circuit
-
Spain
-
Bahrain
18 - Mar 20
Bahrain
25 - Mar 27
Saudi Arabia
8 - Apr 10
Australia
22 - Apr 24
Italy
6 - May 8
United States of America
20 - May 22
Spain
27 - May 29
Monaco
10 - Jun 12
Azerbaijan
17 - Jun 19
Canada
See full schedule

Formula 1 Calendar - 2022

Date
Grand Prix & Circuit
18 - Mar 20
25 - Mar 27
Saudi Arabia Jeddah Street Circuit
8 - Apr 10
Australia Albert Park
22 - Apr 24
6 - May 8
United States of America Miami International Autodrome
20 - May 22
27 - May 29
Monaco Monte Carlo
10 - Jun 12
Azerbaijan Baku City Circuit
17 - Jun 19
See full schedule
show sidebar