Perez Admits Legal Action Led to Force India Administration

[Paul Jeffrey]

Force India have gone into administration thanks to legal action undertaken by lead driver Sergio Perez, it has been revealed.

It appears that the rumours surrounding the difficult financial situation Force India find themselves in have been pretty much on point in the Formula One paddock, with the still competitive British outfit having now confirmed they have struggled to continue paying staff and creditors in recent weeks.

Prior to confirmation that the team have entered administration, it is thought that a winding up petition has already been lodged against the outfit, potentially forcing the squad to close down the Formula One operation had a move into administration not taken place - something that has been prompted by driver Sergio Perez with support of sponsor BTW and engine supplier and close technical partner Mercedes, on request of various members from within the team:

"I end up in a very difficult situation," said Perez. "The last month or so has been extremely tough for me, with the situation our team was (in), and I end up in the middle.​

"We got to a point where action had to be taken, to protect the 400 people that work in the team.

"I should not really like to be involved in this because at the end of the day I'm just a driver, but it got too much and I was asked by a couple of members of the team to go ahead and save the team.

"There was a winding up petition from another customer, which would have closed down the team completely. Therefore, I was asked to basically save the team – to pull the trigger and put the team into administration.

"It has nothing to do with my outstanding amounts. The only reason I've done it is to save the team, and for the better future of the team.

"It was extremely hard, emotionally and mentally. It's really tough. I haven't been able to focus on my driving.

"I don't really understand all the terms with the lawyers, but certainly the bottom line of this is that we either do this or the team will have gone bust."​

Confirmed just today in the Formula One paddock during the Hungarian Grand Prix race weekend, it is not yet known what the future looks like for the British squad in the weeks ahead, although management at Force India are putting on a brave face as they come to terms with the harsh new reality of the latest developments.

With owner Vijay Mallya now frozen out of the decision to sell the team, Force India will be actively touted to potential buyers over the coming weeks as they look for fresh investment and stability to move forward.

Should no new buyer be found, it is entirely possible that Force India may have to walk away from the current season, forfeiting any earned benefits and financial support from the FIA, effectively closing down a team that began life as Jordan Grand Prix back in 1991 before morphing into Midland, Spyker and eventually its current guise - Force India.

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Do you think Force India can survive this latest setback? Let us know in the comments section below!​

 

[Motowntom]

Ha,Ha,Ha... F1 is a joke! They will be lucky to field 12 cars next season, good riddance(from a lifelong F1 fan).
Cheers

 

[DND]

And the next one to take ownership....Chip Ganassi, Andretti Motorsports??

 

[AbeWoz]

And the next one to take ownership....Chip Ganassi, Andretti Motorsports??

Pappa Stroll is investing apparently.... has to in order for his son to stay in F1

 

[USGPMT]

It was a group effort between Perez, Merc, and BWT. Apparently the three parties were trying to 'save 400 jobs' and move the team to more positive footing.

Everyone associated with FI (besides Vijay) seem really chuffed to bits and happy. I would take that as a good sign of things to come.

 

[antirussia81]

"Therefore, I was asked to basically save the team"
Today the team, tomorrow the world... El SuperSergio!

 

[Bernd Graf]

Ha,Ha,Ha... F1 is a joke! They will be lucky to field 12 cars next season, good riddance(from a lifelong F1 fan).
Cheers

Man, that's not in the spirit of motor racing. Imagine if people had your heartless outlook for other kinds of financial trouble, from individual to corporate? I remember back when Lotus was in trouble, that was shameful, repo men even stopped by to take one of their show cars. That is humiliating, esp in a business largely based off the thrill of motorsport and tech development. Regardless of F1's internal problems, it's hardly a joke.

 

[InsaneOzzie]

I hope they succeed in saving this outfit from closing it's doors, not just for the 400 staff & their families who will lose their income, but for F1 as well, as it may not be seen as a positive step forward for new owners Liberty Media, who have said they want to bring affordability back to F1,
yet another team is on the verge of disappearing if no buyer/buyers are found.

This is a prime example of why F1 needs to cap and regulate area's of R&D within the sport, when you reach a point where front wings are worth $1.5 million, I think it's in need of an overhaul.

 

[NDG]

For those who dont know him, the unassuming face of Lance stroll quite have a good racing background... Also a very nice problem to have if I was him. Now dive in head first daddy Stroll!

 

[Pedro17]

It's been a long time since F1 was legitimate. Now it's simply a hobby of the spoiled, talentless children of globalists.

 

[Fat-Alfie]

Much like it has been throughout history then, with the exception of a few drivers.

 

[mceci1]

The future may look grim for Perez and Ocon. Strong rumour has been since the start of this year is Andretti will buy it out. No way will Stroll buy it out, or at least I hope not.

 

[wombat999]

This is a prime example of why F1 needs to cap and regulate area's of R&D within the sport, when you reach a point where front wings are worth $1.5 million, I think it's in need of an overhaul.

Total agreement!
The widgets and gubbins tacked on all over the cars are and extravaganza of irrelevant and wasteful expense.
And there is no driver on Planet Earth who is worth 40,000,000 Quid PA as well.
Formula One needs to be overhauled in both technical and financial areas by an impartial body.
As for Andretti buying out Force India, why? Aside from the US commitments Team Andretti are following Penske into Australia, not an inexpensive move.

 

[Bram Hengeveld]

Let McLaren, RedBull, Mercedes, Renault and Ferrari field four cars and the problem is solved.

Making F1 cheaper isn't the solution. Let the teams with the money run F1. F1 doesn't need HRT, Marussia and such to survive. It needs more cars from existing teams with a proper budget.

 

[Allan Ramsbottom]

When you get someone as bent as Vijay Mallya owning a F1 team,or anything else really,disaster will ensue..

 

[LeSunTzu]

And there is no driver on Planet Earth who is worth 40,000,000 Quid PA as well.

I don't see any reason why Hamilton would earn less than LeBron James or Leo Messi.

 

[Peter Stokman]

I don't see any reason why Hamilton would earn less than LeBron James or Leo Messi.

because the ones you mention also arent worth 40/ 60 million or more. Mesi only can play football LeBron throws things in a basket so does my wife she aint getting 60 million either, i can do a lot more things and dont get so much (almost)

 

[LeSunTzu]

Then it is not a matter of F1 regulations but of world revolution. Good luck doing it

 

[wombat999]

Let McLaren, RedBull, Mercedes, Renault and Ferrari field four cars and the problem is solved. Making F1 cheaper isn't the solution. Let the teams with the money run F1. F1 doesn't need HRT, Marussia and such to survive. It needs more cars from existing teams with a proper budget.

Unless you're thinking of four car teams it can't be done. A couple of decades past they players agreed to an 'Intellectual Rights' ruling which basically meant no 'Customer' teams, any entrant was required to build their own car from the ground up.
And given the current performance of the teams mentioned they can hardly field two reliable cars, let alone four.

 

[shimon.ifraimov]

It's been a long time since F1 was legitimate. Now it's simply a hobby of the spoiled, talentless children of globalists.

go somewhere else with you shitty views and negative vibes, if you dont like f1 dont bother commenting here in the first place!