Things are improving.... McLaren (racing division) only lost £71 million in 2019 (v. £85 mill in 2018)
McLaren Racing has reported a reduced loss in the latest accounts for the group’s division which includes its Formula 1 team.
The racing division lost £71.4 million in 2019, when it finished fourth in the world championship, down from £84.4 million the year before. Its turnover rose by more than £60m to £185m.
The team began the year with a shake-up at the top of its F1 operation which included the appointments of Andreas Seidl as team principal and James Key as technical director. McLaren also hired an all-new driver line-up: Carlos Sainz Jnr and Lando Norris arrived to replace Fernando Alonso and Stoffel Vandoorne.
As part of wider changes in the business McLaren Racing also took over marketing arm McLaren Marketing and licensing company Team McLaren at the beginning of 2019.
As in 2018 the racing division offloaded some of its heritage cars, bringing in £6.7 million. It sold more of its old chassis to McLaren Services during 2020.
The disruption caused to the 2020 championship by the Covid-19 pandemic presented significant financial challenges for many teams, including McLaren. It negotiated a £150 million loan from the National Bank of Bahrain before the postponed season began in July. In December it announced major new investment from MSP Sports Capital, bringing a further £150 million into the business, allowing it to clear its inter-company debt.
McLaren’s 2020 championship result should bring further financial benefits to the team in the shape of an increased share of F1’s prize money. Its third place in the constructors championship last season was the team’s best result since 2012.
Is McLaren in a situation that if it does not start winning in the next three years...its financials are such that it will go the way of Williams, or worse?
Ruslan wrote: ↑3 years ago
Is McLaren in a situation that if it does not start winning in the next three years...its financials are such that it will go the way of Williams, or worse?
Well they had to flog off a chunk of the team to a US investor to pay off what it had borrowed and had to repay to its Bahraini shareholders, and my belief is they have sold their factory to raise cash and now rent it back, so they are far from out of the woods. Selling off chunks of your business to pay off your other shareholders can only go on for a limited time.
They certainly need another good year this year to get some more income... plus they need to be able to attract some decent sponsorship, but with F1 now behind pay walls in most markets viewership is falling and with it sponsor interest in F1 itself. The budget cap might help trim their costs but lets not pretend that the budget cap figure is what they will all actually spend. Im sure every team have found loopholes and hidden closets to hide some of their costs in.
70+ million quid is a fair chunk of change to be losing, even if its less than the year before.
* I started life with nothing, and still have most of it left
“Good drivers have dead flies on the side windows!” (Walter Röhrl)
* I married Miss Right. Just didn't know her first name was Always
Ruslan wrote: ↑3 years ago
Is McLaren in a situation that if it does not start winning in the next three years...its financials are such that it will go the way of Williams, or worse?
Well they had to flog off a chunk of the team to a US investor to pay off what it had borrowed and had to repay to its Bahraini shareholders, and my belief is they have sold their factory to raise cash and now rent it back, so they are far from out of the woods. Selling off chunks of your business to pay off your other shareholders can only go on for a limited time.
They certainly need another good year this year to get some more income... plus they need to be able to attract some decent sponsorship, but with F1 now behind pay walls in most markets viewership is falling and with it sponsor interest in F1 itself. The budget cap might help trim their costs but lets not pretend that the budget cap figure is what they will all actually spend. Im sure every team have found loopholes and hidden closets to hide some of their costs in.
70+ million quid is a fair chunk of change to be losing, even if its less than the year before.
Yea, it is an interesting process to watch, because to succeed they have to succeed on the track. Which means they have to spend money. If they cut back expenditures to balance the books, they are doomed to the fate of Williams. So, it does look like they have to charge forward and hope it all works out.
