Sauber, Manor join Force India in seeking advanced payments from F1

Share This Post

According to reports, Manor and Sauber are asking for advanced payments against future earnings joining Force India in a quest to stave off creditors and keep the doors open from December through February.

The off season are the lean times with no monthly payments coming from Formula One Management who usually pays out prize money from February through November.

It’s not a great testimony that the teams need to cover two months but then that is the bulk of their car development period. Then again, if you were to pay out prize money from September though May, teams might suggest they need the operating cash for attending races. Point is, these teams seem to need a steady, monthly paycheck in order to keep going.

I have not read how the advanced payment works other than it requires unanimous approval by all the teams. Perhaps they are taking advanced earnings and pro-rating it over the 12-month period.

Hat Tip: AUTOSPORT

9 COMMENTS

0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

9 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

stammer

Are you telling me that they incapable of budgeting for this. Taking advances is the beginning of the insolvency spiral. I know – I’ve been there.

Patrick Chapman

Lotus have been unable to pay for the facilities at the tracks for some races now and at one race they couldn’t get their tyres from Pirelli, the Renault buy out appears the only way that they will survive into next year. It is reported that Bernie paid their bills for them and will be deducting it from their prize money. It appears that the smaller teams are all in dire financial straits and this is not a good advertisement for F1. Sauber have been around for longer than I can remember and they are in serious financial trouble at… Read more »

Tom Firth

It would appear things perhaps are moving on the Renault deal, slow progress but it does appear to be accelerating as Lotus F1 Team have cleared some major charges during the previous couple of months (Information freely accessible from Companies House)

Alianora La Canta

It’s hard to call it the “beginning” of the insolvency spiral. All three of these teams are well down this particular road, because Bernie is usually one of the last people a team borrows money from (simply because of the many and creative methods he has of enforcing the political balance’s restoration). Force India’s boss just got deemed a “wilful defaulter”, meaning (among other things) that it is now illegal for an Indian bank to lend Force India any money and other banks are expected to take that into consideration (but aren’t bound by it). Notable in the FIF1 asked… Read more »

The Sarcastic SOB

Yes, Stammer.
It also goes along with a certain lawyer team Principal who did not realize that 3 contracted drivers would not fit into 2 cars.
It’s apparently an F1 “thing” akin to the MGU not working right, as I understand it.

pmr

4 contracted drivers actually, Adrian Sutil also had a contract. Maybe Monisha was thinking the were racing 2-seaters in 2015

John The Race Fan

Seems to me there are lots of financial deals hanging in the balance. Teams. Races. Circuits. Drivers, even.
The sad fact is that Formula One is this generation’s Dynasty. Bernie is a more eccentric Blake Carrington and team owners are like Joan Collins’ character: greedy, cunning, manipulative bitches trying to get close enough to Bernie to seduce him out of some cash.

The Sarcastic SOB

Are these guys on something “special”?
No right-thinking person could really believe they’ll get money out of Bernie ahead of time! Imho they *should, of course, but really… a deal is a deal, isn’t it?

pmr

What i don’t get is that Sauber is moaning about the distribution and lack of fund every chance they get and to whomever will listen. But when the FIA proposes a new engine formula that saves them a boatload of cash, they turn it down.

PatreonPayPal
9
0
Would love your thoughts, please comment.x
()
x