McLaren Racing reported a £71.4 million ($98.9m) loss for the 2019 financial year, which was £13m ($18m) less than the £84.4m ($117m) loss is posted in 2018.
The team saws its revenues accelerate by 50 per cent from £123m ($170.4m) to £185m ($256.4m), driven by increased sponsorship and prize money income after the team finished sixth in 2018, compared to 2017 when it finished a lowly ninth – prize money is paid a year in arrears.
The team also raised £6.7m by selling some of its heritage cars to “specialist collectors around the world”, though this is less than the £10m it raised in 2018 from the same practice. It still holds some 159 cars in its heritage collection, valued at £60.9m.
McLaren Racing has struggled financially in recent years and agreed to sell a minority stake in the business last year to MSP Sports Capital, which raised £150m in exchange for a 15% stake, which will rise to a maximum of 27% by 2022.
A smaller 7% stake was sold to UBS O’Connor LLC and Caspian for £35m, which will reduce to 6% by the end of next year.
These two sales provided the team with enough cashflow to secure its future and to clear all remaining ‘intercompany debt’.
In its financial statement, the team highlighted the ongoing COVID-19 pandemic as reasons to remain cautious after just 17 races were completed in 2020, which will result in a major financial hit, despite the team’s third-placed finish in the Constructors’ Championship.
The team heads into 2021 with a new engine partner in Mercedes, reuniting a long-term relationship prior to its switch to Honda and then Renault.