via Reuters
Formula One F1 – Monaco Grand Prix – Circuit de Monaco, Monte Carlo, Monaco – May 20, 2021 McLaren’s Lando Norris in action during practice REUTERS/Gonzalo Fuentes
via Reuters
Formula One F1 – Monaco Grand Prix – Circuit de Monaco, Monte Carlo, Monaco – May 20, 2021 McLaren’s Lando Norris in action during practice REUTERS/Gonzalo Fuentes
The Middle East continues to be the fount of McLaren’s finances. Bahraini company Mumtalakat Holding Company owns 56.40% of its shares and now the McLaren Group has confirmed a share package worth 643 million euros to Saudi Public Investment Fund.
468 million euros from the 643, would go towards making new capital available to Ares Management- a global investment company. McLaren’s shareholders– Mumtalakat, TAG, and Michael Latifi would plow the 175 million left into the group.
As it seems, the Papaya team, which has been having a strong time on the track this season, has been struggling financially behind the scenes.
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Positive news for our major shareholder McLaren Group with £550m of new investment as part of long-term financial plan
— Zak Brown (@ZBrownCEO) July 16, 2021
McLaren started their year with a hefty loan of 150 million pounds. They got this loan from the National Bank of Bahrain. The year also saw the sale of the headquarters for 200 million euros. The death of McLaren’s largest supporter and the CEO of TAG, Mansour Ojjeh, further upset McLaren’s financial situation.
Financially 2020 for McLaren
The pandemic certainly took its toll on McLaren’s finances last year. Ahead of the 2020 Formula 1 season, McLaren agreed to the 150m loan with the National Bank of Bahrain. This was after the team assessed several options to secure their future as a team.
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Read More: Ferrari to Have No Say in 2022 F1 Driver Selection: Alfa Romeo CEO
At the end of the year, the McLaren Group announced it signed a deal with MSP Sports Capital, a US-based sports investment group. This was done in order to continue its growth as a global sports franchise. The transaction made MSP Sports Capital a minority shareholder with the team; McLaren continuing as the majority shareholder. The company funded 185 million euros into McLaren Racing. This means they gained an initial 15% stake, which will increase to 33% by the end of 2022.
via Reuters
Formula One F1 – Austrian Grand Prix – Red Bull Ring, Spielberg, Styria, Austria – July 3, 2021 McLaren’s Daniel Ricciardo in action during qualifying REUTERS/Leonhard Foeger
Now, with Saudi’s investment in the McLaren Group, there could be an increasing number of ties between the company and the Middle Eastern country. Nonetheless, the immediate financial benefits this reaps for McLaren should not be overlooked by any means.
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