In a stunning revelation, McLaren CEO Zak Brown has disclosed just how close the iconic racing team came to financial ruin in 2020. As the Covid-19 pandemic wreaked havoc globally, McLaren’s operations, including its Formula 1 team, teetered on the brink of collapse. Now, just four years later, McLaren has defied the odds to capture its first Constructors’ Championship in 26 years, a comeback story that echoes the resilience of its legendary founder, Bruce McLaren.
“2020: A Nightmare Year for McLaren”
The pandemic brought McLaren to its knees, with sales of its luxury road cars grinding to a halt and its F1 team mired in midfield mediocrity. Brown, who assumed leadership in 2018, admitted that the organization was mere months away from financial disaster.
“Closing Abu Dhabi ’20, we were definitely on the brink,” Brown confessed post-race in Abu Dhabi, where McLaren clinched the 2024 Constructors’ title. “We were paying all our bills, but we were months away, not several months… If we didn’t have a cash injection, we would have been at risk.”
“Extreme Measures and a Lifeline”
The crisis forced McLaren to take drastic actions, including cutting over 1,000 jobs and securing an emergency loan from the National Bank of Bahrain. Despite these efforts, the team’s survival remained uncertain. Brown likened the situation to a last-ditch baseball play:
“It was going to be the ninth inning before they brought in the relief pitcher.”
That relief came in the form of a £185 million investment from private equity firm MSP Sports Capital, which acquired a 15% stake in McLaren. This cash infusion gave the team breathing room to stabilize and plan its future.
“Sponsorship Revival: The Key to Recovery”
Brown credits McLaren’s revival to a strategic overhaul, particularly its aggressive pursuit of sponsorship deals. Once strapped for funding, McLaren now boasts a car brimming with high-profile sponsors, including Google, Ecolab, OKX, and a groundbreaking partnership with Mastercard.
“From a significantly barer-looking car in 2021, today we have a whole host of sponsors,” Brown noted, reflecting on the team’s financial turnaround.
“From Brink of Bankruptcy to Champions”
The transformation under Brown’s leadership is nothing short of remarkable. In just four years, McLaren has gone from potential insolvency to standing atop the F1 world, with drivers Lando Norris and Oscar Piastri delivering on the promise of a championship-winning team.
Brown’s steely resolve and strategic acumen have propelled McLaren back to the front of the grid, a feat that surely would have made Bruce McLaren proud.
“It wasn’t a comfortable place at all,” Brown recalled of the team’s darkest days. “But now, we’re back where we belong—at the front.”
“The Future is Bright”
As McLaren basks in its resurgence, the road ahead looks brighter than ever. With a stable financial base, a championship-winning car, and two of the grid’s most exciting talents, the papaya team is once again a force to be reckoned with in Formula 1.
The 2024 Constructors’ Championship isn’t just a trophy—it’s a testament to the power of resilience, vision, and the refusal to back down, even when the odds seem insurmountable.