The McLaren Group is considering selling off a minority stake in its Formula 1 team in order to strengthen its position under the new budget cap regulations.
F1 teams will work under a budget cap from next season onwards, with the first year seeing the limit set at $145 million, the second at $140m and then the cap lowering further to $135m from 2023. Following a report from Sky News that McLaren is considering selling a minority stake in the F1 team, RACER understands such an option is being explored in order to try and allow the team to operate as close to the budget cap as possible.
The thinking behind the strategy is that McLaren would be better placed to challenge for championships if it starts the budget cap era at the same level as the likes of Mercedes, Ferrari and Red Bull rather than builds up to it over time, with new technical regulations to be introduced in 2022.
As one of the avenues being explored by the wider McLaren Group to strengthen the F1 team’s position, it has been discussed internally with bondholders but no decision has yet been made on whether the concept will advance any further.
Sky News reports that any stake to be sold would likely amount to between 20% and 30% of the team and could raise tens of millions of dollars.
McLaren has already confirmed it will make around 70 redundancies within its F1 team in order to prepare for the budget cap, with those cuts coming as part of much wider cutbacks as an estimated 1200 jobs will be lost from the McLaren Group. The wider group has been severely hit by the COVID-19 crisis, leading to a major drop in sales of new cars.