McLaren Problems
Posted by: Stu69 (IP Logged)
Date: 24 June, 2020 06:00

Thought I would start thread for them. I swear I can see McLaren failing before Williams. It might be the only way to shed dept. Quite where that leaves the F1 team who knows. They would loose their entrance fee. Which is massive as I remember!

Re: McLaren Problems
Posted by: Stu69 (IP Logged)
Date: 24 June, 2020 06:04

Copied in from news post


Mind boggling amounts of cash that have been spent at McLaren since MARCH!!! Now need more! This is a much much bigger problem to solve than the Williams problem. Williams suddenly looks small fry.

Who in the world has an appetite for a ultra premium super car company riddled with dept with a bolted on F1 team that is mid table and without works backing. Hmmm! Not me!! Oh yea don’t forget the ultra super cars are currently not selling anywhere!! ( RIP!

“The documents add that McLaren's shareholders injected a further £291m into the business in March this year, which was intended to "provide the group with ample liquidity in order to fund its business plan". This is part of a total of £500m invested by shareholders into McLaren in the past 18 months.

McLaren says this has now been spent as a direct result of the effect on business of the coronavirus pandemic.”

Re: McLaren Problems
Posted by: IanSmithISA (IP Logged)
Date: 24 June, 2020 08:54

Good morning,

Investment in the McLaren group is hard to track so the real state of the F1 team is hard to know, the production car business is obviously a high startup cost project and equally has high running and new product development costs.

So large total debt is not necessarily a sign of anything, if the road cars are selling, clearly no revenue for 3 months is causing them a problem.

It is too serious to truly smile, but we are now seeing the inevitable conclusion of the COVID shutdowns and I believe the argument is that this is a price well worth paying and that any talk of consequences was people just being heartless.

Look at INTU a large shopping centre owner, desperately trying to avoid administration as its retail clients stop paying their rents. Don't worry, never heard of INTU, no but your pension fund has.

Hyve group rights issue, Ted Baker rights issue, Aston Martin right issue funds don't seem to be enough etc etc. Easyjet borrowed £400m against its aircraft, £600m for the UK Government, unspecified draw downs on a $500m RCF and possible sale and leaseback of other aircraft.

The problem is that when numbers of these sizes are involved it is usually your pension fund or increased income tax that are the ultimate sources of this money and when this debt sinks the borrower this is "lost" money.

We have had three months to get prepared for this type of news, but certainly in the UK the media have been very quite on the subject because they were scared of the economy/people's lives argument.

Bye

Ian

Re: McLaren Problems
Posted by: Andrew Hooper (IP Logged)
Date: 24 June, 2020 09:46

I always though that McLaren had substantial backing from Bahrain Mumtalakat Holding Company ("Mumtalakat") which is the sovereign wealth fund of the government of the Kingdom of Bahrain.

So I was so surprised that they are having all these financial difficulties. And yes they do make Williams issues look small. If I was Michael Latifi I would be more worried about the several hundred million dollars he has invested in McLaren.

Re: McLaren Problems
Posted by: IanSmithISA (IP Logged)
Date: 24 June, 2020 11:54

Good afternoon

It does, but Mumtalakat is not a prince's vanity fund, it is is an investment project intended to make profits for Bahrain.

Supporting an F1 team which doesn't return a profit may make sense, in the same way as Haas has an F1 team but supporting a car company that is in trouble?

Mumtalakat owns about 63% so 37% is owned by other people, so even if Mumtalakat wants to invest further why should they do so on terms that massively benefit the other owners?

It may be that that the McLaren road car operation is not able to make a profit, the F1 road car from way back failed to meet its financial targets (Ron Dennis).

Back then the F1 was way better than anything on the market but that wasn't enough.

Nowadays McLaren is sort of big company, compared to someone like Pagani, but doesn't have the road car history of Ferrari. Added into the mix nowadays are much better Lambos and understated cars like the Audi R8.

Added to which McLaren have been massively increasing production year on year, which all costs.

Bye

Ian

Re: McLaren Problems
Posted by: Stu69 (IP Logged)
Date: 24 June, 2020 12:53

Haas are next. His business is machine tools for manufacturing. Give it a few weeks and Haas will be for sale.

Re: McLaren Problems
Posted by: Stu69 (IP Logged)
Date: 24 June, 2020 18:08

Bit more info

[www.planetf1.com]

Re: McLaren Problems
Posted by: ghettonation (IP Logged)
Date: 24 June, 2020 18:11

Mclaren Williams merger?

Re: McLaren Problems
Posted by: Stu69 (IP Logged)
Date: 24 June, 2020 18:15

Quote:
ghettonation
Mclaren Williams merger?

Might just make a bigger problem!! Ha ha ha!!

Perhaps they could paint the car orange on one side and blue on the other! A bit like the old BAR! Or run 3 cars and alternate! )

Re: McLaren Problems
Posted by: ghettonation (IP Logged)
Date: 24 June, 2020 19:42

😂 Might cause some family harmony for me. My son in law is a massive mclaren fan. Whereas my daughter and son are both ferrari fans (yes I know, I've no idea what went wrong)

Re: McLaren Problems
Posted by: Stu69 (IP Logged)
Date: 25 June, 2020 20:48

Problem solved for now!!

[www.bbc.co.uk]

Re: McLaren Problems
Posted by: Gunk (IP Logged)
Date: 26 June, 2020 00:07

[quote Stu69]Problem solved for now!!

It's only 250 mil. On current form they'll burn through that in about 10 days.

Re: McLaren Problems
Posted by: Ozzy Osbone (IP Logged)
Date: 26 June, 2020 15:26

You would have to assume they have some sort of plan!

Re: McLaren Problems
Posted by: Stu69 (IP Logged)
Date: 26 June, 2020 19:36

[quote Gunk][quote Stu69]Problem solved for now!!

It's only 250 mil. On current form they'll burn through that in about 10 days.[/quote]

Yes I had a wry smile when I wrote that! Will be gone by end of July!!

Re: McLaren Problems
Posted by: Stu69 (IP Logged)
Date: 19 September, 2020 11:56

[quote Gunk][quote Stu69]Problem solved for now!!

It's only 250 mil. On current form they'll burn through that in about 10 days.[/quote]

GUNK the cash didn’t last long! Selling the factory now to raise cash!

[racer.com]

£200 mill! How long will that last?? Should get them to Christmas!!

Re: McLaren Problems
Posted by: Matt Brown (IP Logged)
Date: 19 September, 2020 13:35

“We’re very excited … The sales leaseback is part of that journey. Why have this money tied up in real estate? We’re not in real estate, we’re a racing team. This is the start of the journey.”

Re: McLaren Problems
Posted by: Stu69 (IP Logged)
Date: 20 September, 2020 12:54

Matt I just wonder if it is the start of a journey! The wrong type of journey. Still at least they have assets to borrow or raise cash against. It’s an amazing facility by anyone’s standards. The rent will be eye watering I imagine.

Re: McLaren Problems
Posted by: Gunk (IP Logged)
Date: 20 September, 2020 18:57

When you read this stuff, you realise that Frank was quite lucky to cash out with a few pennies . . . and I am surprised they left it so late . . . but certainly, better late than never.

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