diffuser wrote: ↑13 Dec 2020, 05:32
mwillems wrote: ↑13 Dec 2020, 01:08
diffuser wrote: ↑13 Dec 2020, 00:33
Not sure that is good news. Is diluting your shares for cash, cause you need the cash good news?
If you need cash, yes.
The team has run at a loss for a while now, so sharing the profits in the future seasons won't be much of a hardship. Trading that against liquidity for automotive is a good deal.
It just like another loan. They end up owning less of McLaren. It isn't good news. They're getting poorer. Just like selling your car to make ends meet isn't good news. It is better news than nobody wanting to buy your car though.
I'm not sure it makes us poorer, racing has been loss making for years. So they have sold a share of future profits in the racing team, which would have been consistent in the new budget cap era, but not that large. This won't make a huge difference to the group in terms of income and is probably a good deal financially for Mclaren. The investors will get access to all of the sponsorship portfolio and be able to build up some really good commercial partnerships, so there's a good benefit for all parties.
Making ends meet... It's Covid, we have to accept the realities of the economy we are in. We aren't Mercedes, Renault or Ferrari. We need some cash to get us through to the next upturn. And who's to say that the new shareholders won't actually improve the quality of our teams board.
