Having successfully raised GBP150 million dollars from the National Bank of Bahrain, who in turn are 44% owned by McLaren’s major shareholder Bahrain Sovereign Wealth Fund Mumtalakat Holding Company [who control 54% of Mclaren’s stock] CEO Zak Brown now believes that the new 2021 F1 regulation’s are “right in the sweet spot” for Mclaren Racing with the newly agreed to, US$ 175 million cost cap being close to where his team’s budget is currently, and with more reductions to come in successive years.
McLaren finished 4th in the 2019 Constructors Championship, and in 2021 will also have a proven race winner Daniel Ricciardo services to partner young gun Landos Norris.
Brown told F1 Nation’s Podcast, “We are not the only team to benefit from the cost cap, those below us and immediately above us will benefit from the regulation changes, including Red Bull Racing.But, I think if I look at the top three spending teams, they all have plenty of financial resource, so they’ll have challenges in scaling back – but that’s kind of a good problem to have, so to speak, so I think they’ll remain as competitive as ever”.
“And then I think you’re going to have three or four teams that now run in the budget cap, ourselves, Renault, Racing Point and I think AlphaTauri will also. And I think Red Bull, if I’m Dr Helmut Marko, I now have two teams and collectively, I can kind of spread my resources and create two equal teams, so I think they’re a big winner out of this as well”.
“And then I think it closes the budget gap for – I’m not sure if Sauber (Alfa Romeo), Haas, and Williams will run at the cap, but the difference between where they are today and where the cap will be will certainly be tighter, so, I think everybody’s really a winner at the end of the day, and it’s going to make for fairer, more balanced competition”.
Brown suggested that fans will also be beneficiaries of that more balanced competition, which in turn will drive improved commercial outcomes for F1.
“I am pleased for the outcome. I think the sport now is much more sustainable,
“I think it’s going to make the sport much more competitive and ultimately the fans are going to be the winners, and I think if the fans win, the sport wins, because we’ll have more fans, newer fans. That will drive television, that will drive countries wanting to have more Grands Prix, that will drive more sponsor partners wanting to join”.
“So, I think well done to the industry. It wasn’t easy, not everyone was always on the same page but I think we’ve landed in a very good spot.”
The 2020 F1 season finally commences this Friday, with practice for the Austrian Grand Prix starting at 19:00 AEST.
