McLaren's $37.6m 2014 Net Loss Revealed

[Paul Jeffrey]

From bad to worse. McLaren's financial losses paint a grim picture for the Woking-based team.

Right in the middle of one of the worst seasons in McLaren's illustrious history, latest financial statements for 2014 showed McLaren turned a $23.5 million net profit for 2013 into a net loss of $37.6 million in 2014, with “compensation for (the) loss of office of a director” to the tune of a cool $15 million, most likely being paid to former McLaren employee Martin Whitmarsh, now CEO of Ben Ainslie Racing Americas Cup team who left the team after 24 years working for the Woking concern.

Writing for Forbes, F1 business journalist Christian Sylt said the latest financial statements for 2014 showed such a dramatic turn down in McLaren's financial fortunes for a number of reasons, including a one-off severance and restructuring fee of $54 million paid to Daimler after the team opted out of their customer Mercedes deal to allow works Honda power for the 2015 season.

Revenue during the 2014 season had also reduced, with chief executive Jonathan Neale saying that was “predominantly due to decreased prize monies and sponsorship”. Evidence of this can be seen by the startling lack of sponsors adorning the sides of both McLaren cars in the last couple of seasons, and the failed attempts to gain a title sponsor.

Even though McLaren’s on track performances continue to underwhelm this season, chairman Ron Dennis insists that “we expect the McLaren Technology Group to return to profit in 2015”.

Although far from short of money, with increasing pressure on the once dominant team and engine manufacturer to succeed in 2016 McLaren will hope the teams financial position increases in seasons to come.

With premium former World Champion drivers Fernando Alonso and Jenson Button on the driving strength, proven team Principal Eric Boullier in charge and the legendary Ron Dennis ever present in the background, McLaren's fortunes (both on track and off) surely cant be far away from a much needed revival.

Lets hope 2016 brings better luck to the Woking team and they can prove a suitable challenger to the Formula One leading teams next season.

Do you think McLaren will turn things around in time to challenge for wins in 2016? Let us know in the comments section below!

 

[Jax Humanhater]

Personally, I think the new formula will be their best bet.

 

[Turk]

I don't understand how teams can't get sponsors for their cars. Unless there's a minimum price limit set or something? You'd think they could reduce the price a little and you'd have all sorts of companies jumping all over the chance for such publicity, even if it's just for a season.

 

[Colin Knowles]

I don't understand how teams can't get sponsors for their cars. Unless there's a minimum price limit set or something? You'd think they could reduce the price a little and you'd have all sorts of companies jumping all over the chance for such publicity, even if it's just for a season.

I'm sure McLaren could scrape a host of little sponsors together but I would guess it's also about brand recognition.

McLaren want a big multi-national with a shared business philosophy not a local bank that's only recognised in Peru.

 

[Turk]

McLaren want a big multi-national with a shared business philosophy not a local bank that's only recognised in Peru.

I can get that but even then, surely there's thousands of international business that would love to sponsor. They could also make a thing out of it, find worthy businesses/charities that deserve some publicity but might not be able to afford advertising like that. Even if they're just regional businesses, F1 is trying to make inroads into America, they could drum up a bit of publicity and gain long term loyal fans by using the advertising space on their car.

I wonder is it also a case that they have to state who their sponsors are at the start of the season? Basically that they couldn't change the look of the car halfway through the season?

It just seems like a waste of opportunities to not put something on the car. Maybe they're just that well off that they don't necessarily need the sponsorship?

 

[Marian Zelenka]

Ron Dennis refused small sponsors, that's why.

 

[Blkout]

They just need to sell about 30 McLaren P1's and they'll make that up.

 

[Philip Heck]

I don't understand how teams can't get sponsors for their cars. Unless there's a minimum price limit set or something? You'd think they could reduce the price a little and you'd have all sorts of companies jumping all over the chance for such publicity, even if it's just for a season.

Most sponsors get grabbed by Bernie to sponsor the whole series, so "every team gets some of the money".
If you search google a bit you might find Claire Williams' oppinion on that... Which isn't good to say the least.

 

[Turk]

McLaren are doing a sale on their website shop for anyone that's interested. http://www.mclarenstore.com/stores/mclaren/en/c/drivers-offer

They need the money lads, Alonso and Button have to literally sell the shirts off their backs to make up for this year.

I bought an Alonso Tshirt and a jacket, they should be able to put oil in the car next year now.

 

[Colin Knowles]

McLaren are doing a sale on their website shop for anyone that's interested. http://www.mclarenstore.com/stores/mclaren/en/c/drivers-offer

They need the money lads, Alonso and Button have to literally sell the shirts off their backs to make up for this year.

I bought an Alonso Tshirt and a jacket, they should be able to put oil in the car next year now.

You should have e-mailed Jenson & Fernando first rather than waste your own lolly
McLaren have enough money don't worry