The COVID-19 pandemic has made survival for F1 teams especially difficult. Already we have seen the likes of Williams open a formal sale process and consider selling their majority stake. Now, the latest reports indicate that McLaren F1 could also be considering something similar. Already a month ago McLaren had announced the laying off of 1,200 staff members to cut costs.

Reports state that McLaren are considering to sell 20 to 30% of stake in F1 team

Sky News reports that the idea to sell a minority stake is being deliberated by the higher-ups at McLaren after discussions with their advisers. Sky News revealed, “Sources said the idea was at a conceptual stage. It was being discussed alongside other funding options, including raising capital from existing bondholders. Bankers have yet to be formally appointed to handle the process.”

Furthermore, they said, “Any transaction is likely to involve selling between 20% and 30% of McLaren’s F1 business. It is a deal that would generate tens of millions of pounds. Insiders suggested that the sale of a minority shareholding would help to provide sufficient funds to assist Mr. Brown’s (CEO of McLaren Racing) ambition of seeing McLaren compete again for F1 drivers’ and constructors’ titles in the coming years. It could enable them to operate at the level of the budget cap on a sustainable basis.”

The fans of the Woking-based outfit should look at this news from an optimistic point of view. It shows McLaren’s desire to remain in the sport come what may. Additionally, it shows the hunger Zak Brown possesses to see his team re-scale the heights they were once at. Nevertheless, fans should expect that with the financial instability caused by the pandemic, more teams could open themselves up to investment.

However, with regards to the 2020 season, McLaren will be looking to impress once again and build on the impressive performances they showcased last year. With Carlos Sainz Jr. set to leave after 2020, he’ll be looking to get Mclaren another podium as a parting gift.