Daniel Ricciardo’s tight Formula 1 team McLaren has secured his financial future given the continuing impact of the COVID 19 pandemic after he signed a £ 150m loan ($ 268m).
The McLaren Group, which includes both automotive manufacturing and the Formula 1 team, announced last month that it had cut 1200 jobs due to the high financial impact of the global pandemic. Around 70 of these jobs are expected to come from the F1 department.
See the F1 Rolex Austrian Grand Prix 2020 LIVE at KAYO. Every training, qualifying and race LIVE. New to Kayo? Get your free trial now and start streaming immediately
Silver arrow turns black
0:38
‘Silver arrows’ no longer: Mercedes shows bold new look in the anti-racism stand
BURNING QUESTIONS: F1 is about to return. But can anyone stop Hamilton?
The team investigated the sale of a small stake – as did the struggling Williams team – while in a cash flow and bankruptcy litigation. The new deal allows them to continue discussing a possible partial sale while offering the cash flow required to ensure their successful participation in the 2020 F1 season, which starts again this weekend.
The GBP 150m loan agreement was signed with the National Bank of Bahrain, which shares a partner with McLaren. The Bahraini state fund Mumtalakat Holding Co has a 56% stake in the McLaren Group and 44% in the National Bank of Bahrain.
Due to internal restructuring in recent years, McLaren has risen to the top of the midfield and has been nicknamed “Best of the Rest” last season. It was the team’s best result since 2012.
The loan agreement – and a potential sale – is intended to enable the team to fight for championships with the elite teams again next season when the competition introduces a budget limit.
3 more F1 races canceled
0:30
Paul Walsh, McLaren Group’s executive chairman, announced the significant job cuts last month and said the budget ceiling would help create a sustainable future for sport.
“McLaren Racing was a supporter of the introduction of the new Formula 1 budget limit in 2021, which will create a sustainable financial basis for the teams and lead to a more competitive sport,” he said.
“While this (job cuts) will have a significant impact on the shape and size of our F1 team, we will now take the necessary measures to be able to run at the cap from 2021 to challenge again for victories and championships in the race Future. “
.
