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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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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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.

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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