McLaren was 'a month or two away' from going bust - Brown

McLaren CEO Zak Brown has revealed how close the F1 team was to going out of business.

McLaren has not only staged a remarkable recovery on track over the past 16 months but behind the scenes, it finds itself in sound financial health just four years after staring at oblivion

It required a number of measures to haul the storied team out of the abyss and set it back on an even keel, which has resulted in it standing on the brink of securing its first constructors' title since 1998.

Brown was just two years into his role as chief executive of McLaren Racing, after starting as executive director of the Technology Group, when he faced the biggest crisis of his career.

"I walked in not understanding how bad it was because I grew up around McLaren, and it was like the almighty McLaren," Brown said, in an interview with The New York Times. "It can’t be that bad.

"But I found, in no particular order, a team that had had its worst year in the history of McLaren; a blank racecar with record-low sponsorship; drivers that didn’t want to drive for us; and a very disgruntled workforce that lacked leadership, so it was every person for themselves. There was a lot of blame, a lot of conspiracy theories and a lack of trust. Other than that, the place was great!

"It became very evident that we had no direction, had lost our way, and hence the results, the chaos, the negativity. It took some time to get that course corrected, make some changes, put a whole new leadership team in place, one step at a time."

With the right people, Brown said McLaren was "going in the right direction", and it "had some momentum."

“Then Covid hits.”

McLaren 'in big financial trouble'

Although F1 managed to go racing in 2020, it was against a backdrop of no fans in the grandstands of the circuits, and under strict conditions imposed by the FIA.

As revenue dwindled, McLaren was forced to take drastic action, which included making staff redundant and selling off assets in a bid to stay afloat.

"When I started, we were losing more than 100 million pounds a year,” Brown said. "I was sheltering the team, saying, ‘Everything’s great,’ but not everything was great. We were in big financial trouble.

"Right as we were turning the corner on track, and turning the corner financially off it, we got hit. Sponsorship stopped, prize money was significantly reduced. It almost put us out of business. We were a month or two away. We were that close."

McLaren was saved by the sale of a 15 per cent stake in the team to New York sports investment group MSP Sports Capital for £185 million. In addition, the McLaren Group sold its Technology Centre headquarters in Woking for £170 million on a 20-year lease back.

"I always had an inner belief that we’d get the money and/or the shareholders would ultimately step up," Brown said. "I was highly stressed, but I always felt at the end of the day we would figure it out, and we did."

Brown has confirmed the team has "been profitable for a couple of years", with record revenue of "over £500 million" due this year.