2018 McLaren F1 Team - Renault

[GoranF1]

Mclaren has 2/3 of usual budget this year due to Honda debth.
Next year back to normal.
Reason for bad development?

[Niiek]

I thought that the McLaren shareholders took care of this years costs, or didn’t they?

[HPD]

As RaceFans revealed in May, McLaren Group raised £200 million in investment by selling 800,000 shares to Nidala, a British Virgin Islands-based company owned by Latifi. McLaren confirmed to investors last week that is being paid in three instalments: £100m has already been received, £50m more will come before the end of 2018 and a further £50m will follow next year.

McLaren Group’s acting chief financial officer Paul Buddin described in a call to investors why the team took the investment.

“The reason we went for that equity was that we recognised our decision, for performance reasons, to take the Honda engine out of the Formula 1 car, would have a significant impact on our cash flows within Formula 1,” said Buddin.

“We have a plan to recover that over the next three, three-and-a-half, four years as we improve performance that will come with improved cashflow from Formula 1 and also knock-on improvements within sponsorship. But for that period we have to fund it and that’s what the equity came in to do.

“We anticipate an improving cashflow position over the next two to three years and we will move back towards cash positive in that timeframe. But it is unlikely to be next year, apart from the investment of course.”

McLaren did consider cutting how much it spent on its Formula 1 team in line with the loss of income from its Honda deal, said Buddin.

“If things do not go to plan then we can take costs out of the Formula 1 business. There is choice there. We could have chosen last year when we took the Honda engine out to have taken an equivalent amount of costs out and still compete in Formula 1. But that’s not McLaren.
“We want to get ourselves back to the front of the grid and therefore we chose to take the equity instead and continue to spend at the same rates we have been spending at in the past.”

https://www.racefans.net/2018/09/06/mcl ... -f1-split/

[Big Tea]

Very good news, but its not funding Mclaren have been lacking.
Lets hope the new arrivals (and pending) will get the team back up there.
Having no financial constraints will of course help

[McMika98]

First of many to follow, the impending financial crash at Mclaren is slowly unravelling. Budget next year is going to be slashed and they do not have significant sponsors, not what the investors want to hear. Ironically its not just the car that has high drag, the f1 team itself is a drag to the parent company.

[RonDennis]

First of many to follow, the impending financial crash at Mclaren is slowly unravelling. Budget next year is going to be slashed and they do not have significant sponsors, not what the investors want to hear. Ironically its not just the car that has high drag, the f1 team itself is a drag to the parent company.

Why are you even here? You're starting to sound like techguy, repeating the same sentence over and over again.

As RaceFans revealed in May, McLaren Group raised £200 million in investment by selling 800,000 shares to Nidala, a British Virgin Islands-based company owned by Latifi. McLaren confirmed to investors last week that is being paid in three instalments: £100m has already been received, £50m more will come before the end of 2018 and a further £50m will follow next year.

McLaren Group’s acting chief financial officer Paul Buddin described in a call to investors why the team took the investment.

“The reason we went for that equity was that we recognised our decision, for performance reasons, to take the Honda engine out of the Formula 1 car, would have a significant impact on our cash flows within Formula 1,” said Buddin.

“We have a plan to recover that over the next three, three-and-a-half, four years as we improve performance that will come with improved cashflow from Formula 1 and also knock-on improvements within sponsorship. But for that period we have to fund it and that’s what the equity came in to do.

“We anticipate an improving cashflow position over the next two to three years and we will move back towards cash positive in that timeframe. But it is unlikely to be next year, apart from the investment of course.”

McLaren did consider cutting how much it spent on its Formula 1 team in line with the loss of income from its Honda deal, said Buddin.

“If things do not go to plan then we can take costs out of the Formula 1 business. There is choice there. We could have chosen last year when we took the Honda engine out to have taken an equivalent amount of costs out and still compete in Formula 1. But that’s not McLaren.
“We want to get ourselves back to the front of the grid and therefore we chose to take the equity instead and continue to spend at the same rates we have been spending at in the past.”

https://www.racefans.net/2018/09/06/mcl ... -f1-split/

Sounds good, hopefully we get some confirmation on the 200 million dollar cap in 2021. They will be saving some money anyway next season with Alonso moving out and more prize money.

[McG]

First of many to follow, the impending financial crash at Mclaren is slowly unravelling. Budget next year is going to be slashed and they do not have significant sponsors, not what the investors want to hear. Ironically its not just the car that has high drag, the f1 team itself is a drag to the parent company.

Why are you even here? You're starting to sound like techguy, repeating the same sentence over and over again.

As RaceFans revealed in May, McLaren Group raised £200 million in investment by selling 800,000 shares to Nidala, a British Virgin Islands-based company owned by Latifi. McLaren confirmed to investors last week that is being paid in three instalments: £100m has already been received, £50m more will come before the end of 2018 and a further £50m will follow next year.

McLaren Group’s acting chief financial officer Paul Buddin described in a call to investors why the team took the investment.

“The reason we went for that equity was that we recognised our decision, for performance reasons, to take the Honda engine out of the Formula 1 car, would have a significant impact on our cash flows within Formula 1,” said Buddin.

“We have a plan to recover that over the next three, three-and-a-half, four years as we improve performance that will come with improved cashflow from Formula 1 and also knock-on improvements within sponsorship. But for that period we have to fund it and that’s what the equity came in to do.

“We anticipate an improving cashflow position over the next two to three years and we will move back towards cash positive in that timeframe. But it is unlikely to be next year, apart from the investment of course.”

McLaren did consider cutting how much it spent on its Formula 1 team in line with the loss of income from its Honda deal, said Buddin.

“If things do not go to plan then we can take costs out of the Formula 1 business. There is choice there. We could have chosen last year when we took the Honda engine out to have taken an equivalent amount of costs out and still compete in Formula 1. But that’s not McLaren.
“We want to get ourselves back to the front of the grid and therefore we chose to take the equity instead and continue to spend at the same rates we have been spending at in the past.”

https://www.racefans.net/2018/09/06/mcl ... -f1-split/

Sounds good, hopefully we get some confirmation on the 200 million dollar cap in 2021. They will be saving some money anyway next season with Alonso moving out and more prize money.

And isn't it ironic that he's likely a Mika Hakkinen fan, who along with McLaren went through a bad patch then came out alright.

Repetitive gloomy muppets.

[Jolle]

First seeing then believing. There are/were too many overly positive announcements from McLaren since Daimer and Vodafone left. Their statement that they are keeping the investment into the F1 project on the same level is already untrue. I estimate, with their new driver choice they slashed already a considerable amount of budget by 30 mln euro's at least.

[McMika98]

Last time i checked RonDennis does not own Mclaren which is a shame and just cause one calls himself RonDennis does not give them the right to decide who can or cannot post. Yes as a lifelong Mclaren fan since the glory days Mika. Sadly there isnt much positive to post apart from bitter truth and calling out the fake stuff that Zak media puts out. Never recalled a a bad dry patch as the last 5 years, the company has been reduced to a laughing stock.

[Ground Effect]

First seeing then believing. There are/were too many overly positive announcements from McLaren since Daimer and Vodafone left. Their statement that they are keeping the investment into the F1 project on the same level is already untrue. I estimate, with their new driver choice they slashed already a considerable amount of budget by 30 mln euro's at least.

Even during talk of proposed budget cap, it excludes drivers salaries. Besides, the saving on Fernando's salary can be channeled into development, so they'd still end up with the same spend.

[trinidefender]

Last time i checked RonDennis does not own Mclaren which is a shame and just cause one calls himself RonDennis does not give them the right to decide who can or cannot post. Yes as a lifelong Mclaren fan since the glory days Mika. Sadly there isnt much positive to post apart from bitter truth and calling out the fake stuff that Zak media puts out. Never recalled a a bad dry patch as the last 5 years, the company has been reduced to a laughing stock.

Did you miss the 200 million investment that is being made?

[Big Tea]

Last time i checked RonDennis does not own Mclaren which is a shame and just cause one calls himself RonDennis does not give them the right to decide who can or cannot post. Yes as a lifelong Mclaren fan since the glory days Mika. Sadly there isnt much positive to post apart from bitter truth and calling out the fake stuff that Zak media puts out. Never recalled a a bad dry patch as the last 5 years, the company has been reduced to a laughing stock.

Did you miss the 200 million investment that is being made?

I am still unsure how to take the group investing. Is it going to come with chains.

[Jolle]

The report states that they are underperforming as a group and expect to do that in the coming years but anticipate that this will improve. Nowhere does it really states that they are going to use this investment for improving that balance. Don't forget they had to buy out Ron Dennis last year and this is more or less a small part of his old shares. They are more likely hoping that their cashflow will improve due to extra sale of cars and gaining more sponsors. Selling off parts of the company to pay for running costs of your face team is not the most clever thing to do, the other shareholders will know this as well.

[RonDennis]

The report states that they are underperforming as a group and expect to do that in the coming years but anticipate that this will improve. Nowhere does it really states that they are going to use this investment for improving that balance. Don't forget they had to buy out Ron Dennis last year and this is more or less a small part of his old shares. They are more likely hoping that their cashflow will improve due to extra sale of cars and gaining more sponsors. Selling off parts of the company to pay for running costs of your face team is not the most clever thing to do, the other shareholders will know this as well.

Well Latifi is a great addition to McLaren. There was recently an article about him on Autosport, McLaren not only signed him for the money, mighty impressive what the guy did.

[Jolle]

The report states that they are underperforming as a group and expect to do that in the coming years but anticipate that this will improve. Nowhere does it really states that they are going to use this investment for improving that balance. Don't forget they had to buy out Ron Dennis last year and this is more or less a small part of his old shares. They are more likely hoping that their cashflow will improve due to extra sale of cars and gaining more sponsors. Selling off parts of the company to pay for running costs of your face team is not the most clever thing to do, the other shareholders will know this as well.

Well Latifi is a great addition to McLaren. There was recently an article about him on Autosport, McLaren not only signed him for the money, mighty impressive what the guy did.

Oh I'm not saying this isn't good for McLaren, just cautious that this isn't the solution to their pain yet. These days in F1 you seem to need a billion dollar engineering focused company behind you with lots of funding. With a multimillion dollar private investment group you're no better off then Racing Point or Williams.