Brown extends deal to helm Mclaren team
Mclaren Racing has re-signed CEO Zak Brown until 2030. The American joined as an executive director in 2016 before being handed the keys in 2018.
Under Brown’s reign, Mclaren has added Indycar, Formula E and Extreme E programmes alongside its Formula 1 entry. “It is a privilege to work alongside the talented men and women across Mclaren Racing’s different race series,” he said. “Together, we will continue to push the boundaries of motorsport and strive for the highest performance on and off the track.”
But that’s not the biggest bit of paperwork Woking execs have inked in recent days. The sovereign wealth fund of Bahrain has completed a full takeover of the wider Mclaren Group, which owns a majority share in the grand prix team. Late last year, Mclaren shareholders unanimously approved a full recapitalisation of the business, ostensibly to allow for a “simplified” and “streamlined” governance process. That has been realised thanks to Bahrain Mumtalakat Holding Company, the Gulf state’s sovereign wealth fund, taking full ownership of the share capital “following the conversion of all preference shares into ordinary shares”.
Mumtalakat has been partnered with Mclaren since purchasing a 30% stake from former chairman Ron Dennis and the late Mansour Ojjeh in 2007. This takeover finally shores up Mclaren’s finances after delays to road car production, arranging a leaseback deal on its HQ, seeking a loan from the Bahrain national bank, cutting 1000 jobs, and selling £185million worth of shares in its F1 team to an American investment firm.
Mclaren Group executive chair Paul Walsh said: “This will further enable us to focus on delivering our long-term business plan, including investment in new products and technologies, whilst continuing to explore potential technical partnerships with industry partners.”