McLaren to sell stake in F1 team to US investors

McLaren is poised to announce the sale of a stake in its Formula 1 team to American investors ahead of the Abu Dhabi Grand Prix.

McLaren to sell stake in F1 team to US investors

The deal, first revealed by Sky News, has been agreed with US-based investors MSP Sports Capital leading a consortium that will take a 15 percent stake in the team – which will rise to 33 percent by 2022.

Although there was no official confirmation on Saturday night, McLaren has scheduled a press conference on Sunday morning in Abu Dhabi where it is expected the news will be announced by the team’s CEO Zak Brown. The deal should result in McLaren being boosted by a cash injection of $185 million over the next two years.

With the McLaren group having faced financial troubles this year as a result of the coronavirus pandemic, the involvement of new investors will be a massive boost to the F1 team as it bids to build on a successful 2020 campaign.

MSP Sports Capital leads a targeted fund that invests in sports-related properties that it believes have long term potential. Key figures from MSP have experience as owners and investors in the National Football League (NFL), Major League Baseball (MLB), National Basketball Association (NBA), ESPN and other sports management companies.

McLaren, which runs an automotive division, its racing team and applied technology arm, has been hit hard by the financial impact of the coronavirus crisis. Back in June, the Woking-based operation agreed a £150 million loan arrangement with the National Bank of Bahrain to help increase liquidity amid mounting concerns over a short-term cash flow problem.

Read Also:

McLaren is also in the process of selling and then leasing back its factory in Woking, in a bid to raise extra finances that can help pay down its debt. Currently, around 56 percent of McLaren Group is owned by Bahrain's Mumtalakat Holding Company, 14 percent by Mansour Ojjeh and 10 percent by Michael Latifi, with the remaining 20 percent split between minority shareholders.

Speaking earlier this weekend, McLaren CEO Zak Brown said that despite the difficulties of this season, he was bullish about the future and saw no reason why the team could not operate at the limit of the new F1 budget cap.

“I’m very comfortable that we will be operating at the budget cap,” he said. “We will have all the resources we need. Our chairman is, as you know, restructuring the business.

“He is very experienced in that so everything is going according to plan and very comfortable and excited about our future.”

shares
comments

Related video

Wolff: It’s Hamilton’s call whether he’s fit enough to race
Previous article

Wolff: It’s Hamilton’s call whether he’s fit enough to race

Next article

Formula 1 Abu Dhabi Grand Prix – How to watch, start time & more

Formula 1 Abu Dhabi Grand Prix – How to watch, start time & more
Load comments
The humbling changes Ricciardo made to deliver the goods for McLaren Prime

The humbling changes Ricciardo made to deliver the goods for McLaren

From being lapped by his own teammate in Monaco to winning at Monza, it’s been a tumultuous first season at McLaren for Daniel Ricciardo. But, as he tells STUART CODLING, there’s more to the story of his turnaround than having a lovely summer holiday during Formula 1's summer break...

The potential benefits of losing the F1 constructors' title Prime

The potential benefits of losing the F1 constructors' title

As the battle continues to rage over the F1 2021 drivers' championship, teams up and down the grid are turning their attentions to the prize money attributed to each position in the constructors' standings. But F1's sliding scale rules governing wind tunnel and CFD use will soften the blow for those who miss out on the top places

Formula 1
Nov 25, 2021
The invisible enemy that's made Hamilton's title charge tougher Prime

The invisible enemy that's made Hamilton's title charge tougher

After winning his past few Formula 1 titles as a canter, Lewis Hamilton currently trails Max Verstappen by eight points heading into the final double-header of 2021. Although Red Bull has been his biggest on-track challenge, Hamilton feels that he has just as much to grapple with away from the circuit

Formula 1
Nov 24, 2021
Why F1's inconvenient penalties have to stay Prime

Why F1's inconvenient penalties have to stay

OPINION: Quibbles over the length of time taken by Formula 1's stewards over decisions are entirely valid. But however inconvenient it is, there can be no questioning the importance of having clearly defined rules that everyone understands and can stick to. Recent events have shown that ambiguity could have big consequences

Formula 1
Nov 23, 2021
The mistakes Red Bull cannot afford to repeat in F1 2021's title fight climax Prime

The mistakes Red Bull cannot afford to repeat in F1 2021's title fight climax

OPINION: Red Bull has had Formula 1’s fastest package for most of 2021, but in several of the title run-in events it has wasted the RB16B’s potential. It cannot afford to do so again with Lewis Hamilton motoring back towards Max Verstappen in the drivers’ standings with two rounds remaining

Formula 1
Nov 23, 2021
Qatar Grand Prix driver ratings Prime

Qatar Grand Prix driver ratings

Qatar was a virtual unknown for most as Formula 1 made its inaugural visit to the Gulf state, and tyre management quickly emerged as an even more critical factor than normal. Perhaps then it should come as no surprise that two of the championship's elder statesmen produced standout drives

Formula 1
Nov 22, 2021
How Hamilton dominated in Qatar despite missing a key Mercedes advantage Prime

How Hamilton dominated in Qatar despite missing a key Mercedes advantage

There was simply no stopping Lewis Hamilton on Formula 1's first visit to Qatar. The Mercedes driver eased to pole position and led every lap to secure an utterly dominant victory - even without a key Mercedes weapon in his arsenal to increase the heat on Red Bull heading into the final two races of the gripping 2021 title race

Formula 1
Nov 22, 2021
Qatar's long-term plans for a "World Cup every single year" Prime

Qatar's long-term plans for a "World Cup every single year"

Qatar is preparing to host the football World Cup next year, but will be thrown into the sporting spotlight this weekend as Formula 1 prepares to race in the country. Ahead of a 10-year deal to hold a grand prix from 2023 onwards, it's a much-needed opportunity to highlight reforms in the country

Formula 1
Nov 20, 2021