Zak Brown explains how McLaren went from financial survival mode to becoming one of Formula 1’s biggest success stories
Looking at McLaren’s current Formula 1 success, it is easy to forget just how difficult the team’s situation was only a few years ago.
Back in 2017, McLaren was among the weakest teams on the grid, before showing gradual improvement by 2019, albeit without consistent competitiveness. Even at the beginning of 2023, the Woking-based team endured another painful phase, with weekends where its drivers were being lapped and operational issues, including pit stop problems, undermining performances. Everything changed when a major upgrade package introduced in Austria transformed the season.
Since that turning point, McLaren has continued to build momentum, culminating in last season’s drivers’ and constructors’ championships.
It has been a remarkable journey for the papaya team, one that has inevitably made rivals take notice. But none of that success came without enormous effort. Behind the scenes, engineers and mechanics worked relentlessly on the technical side, supported by high-profile hires brought in from rival teams. At the same time, McLaren’s commercial strategy proved just as crucial to its survival.
In 2020, the brand was reportedly on the brink of collapse, and only decisive action led by CEO Zak Brown prevented bankruptcy.
Zak Brown reveals McLaren’s financial crisis
“We were at risk of going bankrupt. I felt our sponsors wouldn’t allow that to happen, but they were already investing huge amounts of money into the project, and nobody has unlimited funds,” Zak Brown explained on The Race podcast.
“We sold historic cars, part of the McLaren Technology Centre, and equity stakes to get the books back under control. We needed help, and in that context I even spoke with Liberty Media. The group never provided financial support directly, but they were prepared to step in, and that helped convince sponsors to invest more money.”
McLaren’s rescue ultimately came through Bahrain’s financial backing, including a reported $184 million loan, alongside investment from MSP Sports Capital, which acquired a significant stake in the company: “I was hiding the truth from the team because I wanted them to keep pushing at maximum effort and not worry about things outside their control, but deep down I was terrified too,” Brown admitted – “Once the crisis passed, we managed to recover everything — except the historic cars.”
McLaren’s multi-billion-dollar transformation
McLaren’s financial recovery has since accelerated dramatically.
The Bahrain-backed investment group later acquired the shares McLaren had previously sold to MSP, in a deal reportedly valuing the company at $4.5 billion, making Bahrain the principal shareholder. With McLaren now enjoying renewed sporting success at the front of Formula 1, there is every reason to believe the team’s commercial value could continue rising even further.
Few Formula 1 turnaround stories, both financially and competitively, have been as dramatic as McLaren’s.
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