McLaren now looking for F1 team investor

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According to Autosport, McLaren are looking to sell up to 30% of McLaren Racing which includes its Formula 1 team as well as Indycar team. You’ll recall that a few weeks ago, McLaren Group were looking for an investment of around $275M for liquidity of their entire company.

It now seems they are looking to shed some of its F1 team and this comes on the forefront of massive regulatory changes to F1 including an all-new cost-cap of $145M.

The current ownership breaks down as: 56% of the McLaren Group owned by Bahrain’s Mumtalakat Holding Company, 14% by Mansour Ojjeh and 10% by Michael Latifi, with 20% amongst minority shareholders.

If F1’s new cost-cap model of $145M is achievable, teams such as Williams and McLaren may feel this makes investment opportunities for appealing from outside investors.

The change in the introduction of the new technical regulations to 2021 is a big step because it now places a lot of the R&D burden on a limited cost-cap model instead of the unfettered budgets previously enjoyed. Or at least that’t the thinking but you would also have to assume the big teams know this and are already thrusting as much R&D into this season as they can.

You’ll also recall that Michael Latifi is also invested in Williams and it remains to be seen if he will continue his position in McLaren.

Regardless, this is concerning and a minority ownership in the F1 team is interesting but I wonder who wants to be crammed down on a s minority owner with 30% of the risk and no promises of any upside apart from the notion that the cost-cap will equalize the field and generate more revenue for the team? I am not sure that’s given.

Hat Tip: Autosport via Sky Sports

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marti

Michael Latifi only has a 10% stake in Mclaren – the same stake he has in Williams,
Enough to elevate him from, minority shareholder status to the next level though still not a significant share holder. Objectively Mclaren Racing would B a good buy at this time. With the Mercedes PU waitin ready in the background.