McLaren Racing has reported a reduced loss in the latest accounts for the group’s division which includes its Formula 1 team.
The team began the year with a shake-up at the top of its F1 operation which included the appointments of Andreas Seidl as team principal and James Key as technical director. McLaren also hired an all-new driver line-up: Carlos Sainz Jnr and Lando Norris arrived to replace Fernando Alonso and Stoffel Vandoorne.
As part of wider changes in the business McLaren Racing also took over marketing arm McLaren Marketing and licensing company Team McLaren at the beginning of 2019.
As in 2018 the racing division offloaded some of its heritage cars, bringing in £6.7 million. It sold more of its old chassis to McLaren Services during 2020.
The disruption caused to the 2020 championship by the Covid-19 pandemic presented significant financial challenges for many teams, including McLaren. It negotiated a £150 million loan from the National Bank of Bahrain before the postponed season began in July. In December it announced major new investment from MSP Sports Capital, bringing a further £150 million into the business, allowing it to clear its inter-company debt.
McLaren’s 2020 championship result should bring further financial benefits to the team in the shape of an increased share of F1’s prize money. Its third place in the constructors championship last season was the team’s best result since 2012.
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3 comments on “McLaren Racing reports reduced £71 million loss in 2019”
12th February 2021, 18:22
It seems McLaren still have deep systemic financial issues. Whilst Zak ‘the marketing guy’ Brown has bought many sponsors, It seems they’ve gone for quantity over quality (£), Can’t be good for wider teams when 1 team is willing to lower the bar for sponsorship by so much. Seems like they’re still struggling for those 1/2 big title sponsors who bring in easy £20-£50m a year instead of smaller ones who reel in £500k-£2m each. Can’t pin it all on Zak as it was an issue before his time & arose when Hamilton left/new hybrid era where likes of Vodafone disappeared. If F1/Zak Brown aren’t careful with dilution of sponsors it won’t be long before Woking Taxis & Smithies Boilers Ltd are sponsors…an exxegration but you get what I mean. Big sponsors>>>Tiny sponsors>>Flogging £90 hoodies to kids online which amount to few million. Focus on the bigger picture needed, surprised Bahrani’s don’t get Gulf Airways to sign up. Also heard McLaren have 90 people in marketing department which costs £5m+ each year in wages….Is that really needed?
13th February 2021, 12:39
You aren’t going for quantity over quality if the big sponsors aren’t there, you get what you can. Lowering the bar and actually having some sponsorship money is better than holding out for more money but essentially having nothing.
Duncan Idaho (@didaho)
13th February 2021, 3:32
Advertising trended online over the last decade and a huge chunk of residual attraction for mass-market sponsors surely walked out the door with the free-to-air broadcasters. I guess Bernie and CVC were happy with the cash-in/cash-out; Ferrari, Redbull & Mercedes don’t rely on that income stream and probably traded off for other benefits. Teams relying on sponsors not so much – FI, Williams etc.
McLaren’s a little in between but they’ve probably got an uphill battle again to make enough margin selling road cars to balance the books. Hopefully the cost cap will help them to a sustainable operation.
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