415 replies to this topic

[pdac]

Under the current contract, the Commercial Rights Holder is obliged to pay the teams a fixed percentage of its turnover. However, early this year before Covid became a huge problem, Liberty projected what their turnover for the full 2020 season would be and how much of that would be paid to the teams. To Liberty's credit, more recently they said that they would pay out that projected amount, notwithstanding that their turnover is likely to be far less than what was expected at the time of the projection.

https://www.theguard...t-liberty-media

 

Ah, I didn't realise that they were paying the full (from the projection) amount. That's really good for the teams.

[frosty125]

I think with the commitments from FOM and racing started again and the significant cost measures in place I think the future of almost all the teams is looking good. In terms of the McLaren group there is going to be massive liquidity pressure on its car division however I believe that the capital will be raised.

[pup]

Relative to all of this, I've always found the distinction between Mumtalakat and other wealthy F1 investors to be odd, in that Mumtalakat sees their involvement purely as an investment rather than sponsorship.  I've always wondered why they haven't had a visible presence on the car - either directly, as tourism advertising; or as advertising for their other Mumtalakat investments.  

[New Britain]

Relative to all of this, I've always found the distinction between Mumtalakat and other wealthy F1 investors to be odd, in that Mumtalakat sees their involvement purely as an investment rather than sponsorship.  I've always wondered why they haven't had a visible presence on the car - either directly, as tourism advertising; or as advertising for their other Mumtalakat investments.  

That's a good question, but one presumes that Mumtalakat reckon that they can get more net revenue by selling that space to a third party than they would generate by advertising themselves in it. The name Mumtalakat as such has no name recognition but neither (AFAIK) has it any retail products to advertise. Mumtalakat own Gulf Air, however, and that might have been a candidate for F1 advertising.

I don't think that, at this point, the McLaren stake is seen by them purely as a discrete investment in the traditional private equity, parasitic sense. Their McLaren stake is implicitly related to Bahrain's hosting of a Grand Prix and part of their soft-power project to glamourise their country and make it more attractive to tourists, investors, and consumers.

[jjcale]

Mumtalakat are not selling anything - so they dont need to advertise.

 

Also Bahrain tries to be more professional than the others ... note tries   (eg they just dumped another £150m in when they were pretty desperate not to ..... but still no WeWork type disasters for them so cant knock them too hard ) ... but what that means here is no mixing up of investments by giving a soft deal to another owned company for ad space on the car... which is the right thing to do. 

[jjcale]

That's a good question, but one presumes that Mumtalakat reckon that they can get more net revenue by selling that space to a third party than they would generate by advertising themselves in it. The name Mumtalakat as such has no name recognition but neither (AFAIK) has it any retail products to advertise. Mumtalakat own Gulf Air, however, and that might have been a candidate for F1 advertising.

I don't think that, at this point, the McLaren stake is seen by them purely as a discrete investment in the traditional private equity, parasitic sense. Their McLaren stake is implicitly related to Bahrain's hosting of a Grand Prix and part of their soft-power project to glamourise their country and make it more attractive to tourists, investors, and consumers.

 

It depends who you ask and what day of the week ... is the investment a traditional one or is it soft power is an unresolved question for them.

 

... as the clip from the movie Cool Hand Luke used in the intro to Guns n Roses' song Civil War says ... So you get what we had here last week, which is the way he wants it... well, he gets it.  

[pup]

Mumtalakat are not selling anything - so they dont need to advertise.

Their portfolio says otherwise.  They hold a controlling interest in quite a few companies that could benefit from advertising: boat builders, commercial real estate, tourism, transportation, finance, media, etc.

[jjcale]

Their portfolio says otherwise.  They hold a controlling interest in quite a few companies that could benefit from advertising: boat builders, commercial real estate, tourism, transportation, finance, media, etc.

 

 

... but what that means here is no mixing up of investments by giving a soft deal to another owned company for ad space on the car... which is the right thing to do. 

[pup]

I don't know what you mean by "the right thing".  And I don't claim to know if what they're doing is "right" or "wrong".  I assume that they know their business better than either of us, but I do think that it's an intriguing point of contrast to other owners.  It raises the question of why other companies should advertise with the team if the owners themselves don't see a value in it.  

[Flasheart]

They dont support the secondary market ... like Ferrari and others do... the cars are good.  

 

 

Edit - breaking down a lot never hurt any peformance car brand.... that is part of the charm. 

 

Yep. Jaguar did alright out of it, haha.

[Flasheart]

There’s a lot of much cleverer people here than me that know big business, so I’ll leave all that to them. I’m just glad McLaren seem, at least for now, ok.

[johnwilliamdavies]

https://news.sky.com...m-deal-12159554

 

 

 

A consortium of US-based investors is close to buying a big stake in the McLaren Formula One (F1) team in a deal that will value the historic British racing outfit at more than £550m.

[FLB]

Whoa...

 

Guess Mr. Brown was busy during the pandemic.

Edited by FLB, 12 December 2020 - 19:49.

[Risil]

Sounds like promising news? Perhaps I'm untethered from reality but half a billion pounds sounds like a lot of money for a midfield racing team, even in Formula One.

 

I wonder if the folks in Indiana will find it interesting that an English news outlet sees fit to include the detail that McLaren also races in Indycar.

[pdac]

That sounds like really good news if it goes through (but they still haven't managed to shift that MTC complex yet)

Edited by pdac, 12 December 2020 - 21:38.

[Sam1]

Bernie to the rescue lol