How long can McLaren survive...?

How long can McLaren survive...?

Author
Discussion

anonymous-user

Original Poster:

56 months

Wednesday 18th March 2015
quotequote all
[redacted]

slipstream 1985

12,446 posts

181 months

Wednesday 18th March 2015
quotequote all
Honda pay for engines and mclaren sell 100s of different varieties of their 3.8 engine in each model they release.

BoRED S2upid

19,830 posts

242 months

Wednesday 18th March 2015
quotequote all
I'm sure they could have plenty of sponsors littering the car if they wanted to but you have to be careful of the right sponsor you can't devalue the brand.

F1GTRUeno

6,399 posts

220 months

Wednesday 18th March 2015
quotequote all
BoRED S2upid said:
I'm sure they could have plenty of sponsors littering the car if they wanted to but you have to be careful of the right sponsor you can't devalue the brand.
Surely there comes a point whereby sponsorship money is worth more than brand image?

Plus it's not like the image of the F1 team is anything less than catastrophic right about now.

DanielSan

18,868 posts

169 months

Wednesday 18th March 2015
quotequote all
BoRED S2upid said:
I'm sure they could have plenty of sponsors littering the car if they wanted to but you have to be careful of the right sponsor you can't devalue the brand.
Ron is really just lying in a dream world when it comes to the amount of cash he thinks he can get for someone to sponsor a team that hasn't won anything for 7 years and isn't likely to in the next 2 or 3 either.

mw88

1,457 posts

113 months

Wednesday 18th March 2015
quotequote all
I don't think they will go under anytime soon - McLaren's sole income isn't based on sponsorship. There's a number of other companies under the McLaren brand which I'm sure contribute a large part of their budget.

The ones I know of are:

McLaren cars - Road cars, and customer GT3 race cars

McLaren Electronics - Supply a boat load of racing sensors/electronics - They provide standard ECU's/Displays to all F1 teams (Aswell as Indy/Nascar).


Bradgate

2,855 posts

149 months

Wednesday 18th March 2015
quotequote all
DanielSan said:
Ron is really just lying in a dream world when it comes to the amount of cash he thinks he can get for someone to sponsor a team that hasn't won anything for 7 years and isn't likely to in the next 2 or 3 either.
yes

Ron is deluded. He thinks he is going to land another Vodafone, but there is zero chance of that happening until McLaren are winning again and F1 makes a major effort to appeal to a younger fan base via social media.

StevieBee

13,040 posts

257 months

Wednesday 18th March 2015
quotequote all
McLaren in all it's component parts is a hugely wealthy concern with hugely wealthy investors. It's road car operation is seemingly doing well with good pipeline stuff and crucially - and this for the non-business people really is crucial - cash-flow.

They're a long way from going ars over apex.

I sense F1 is going through a quiet revolution. The powers that be are not ignorant to its woes and I predict a more equitable and fairer dispersal of money coming on line at some point over the coming few years and I would suspect that there will be less reliance upon the need for commercial sponsorship than there is at the moment; perhaps go the football route and just one main sponsor per team.

PS: The word 'sense' can be interchanged with 'hope'

btcc123

1,243 posts

149 months

Wednesday 18th March 2015
quotequote all
McLaren race team is self funding,they dont take any money from other parts of the company.

Two lots of money from Bernie as they are a long established team and prize money,Honda pay everything on the engine side plus Alonsos wages and a bit more I believe,some Middle East money and they have over 20 sponsors that probably pay a lot more than a title sponsor so overall they have enough money for the budget.

DanielSan

18,868 posts

169 months

Wednesday 18th March 2015
quotequote all
Road cars aren't doing aswell as people would think either, they've been over stocking dealers and registering cars but not selling them. Mainly because potential customers are expecting the car they buy to be the 'old' model within 6 months after the 12c/650s debacle.

RYH64E

7,960 posts

246 months

Wednesday 18th March 2015
quotequote all
BoRED S2upid said:
I'm sure they could have plenty of sponsors littering the car if they wanted to but you have to be careful of the right sponsor you can't devalue the brand.
Being last of the losers isn't going to do the brand much good either...

entropy

5,499 posts

205 months

Wednesday 18th March 2015
quotequote all
The problem is that Ron needs to raise capital to keep himself as top dog at McLaren else the boardroom will make an intervention not helped by the relations with major investor Mansour Ojjeh is said to have declined in recent times.

greygoose

8,341 posts

197 months

Wednesday 18th March 2015
quotequote all

StevieBee said:
I sense F1 is going through a quiet revolution. The powers that be are not ignorant to its woes and I predict a more equitable and fairer dispersal of money coming on line at some point over the coming few years and I would suspect that there will be less reliance upon the need for commercial sponsorship than there is at the moment; perhaps go the football route and just one main sponsor per team.

PS: The word 'sense' can be interchanged with 'hope'
I am not sure the football analogy is true, football teams have a shirt sponsor, the shirt maker pay them and successful sides have loads of other firms paying them too. Look at Man Utd with deals with 28 firms according to their own website, the shirt sponsor is just the one that pays the most.

rubystone

11,254 posts

261 months

Wednesday 18th March 2015
quotequote all


DanielSan said:
Road cars aren't doing aswell as people would think either, they've been over stocking dealers and registering cars but not selling them. Mainly because potential customers are expecting the car they buy to be the 'old' model within 6 months after the 12c/650s debacle.
Every 675 is sold and most speccced with the £40k of extras considered essential for resale.

Maybe they should just focus on special editions?

glazbagun

14,323 posts

199 months

Wednesday 18th March 2015
quotequote all
I find it fascinating. I often wonder how Peugeot could go from funky Pininfarina designs to the gaping mouth, or how Renault can seemingly get things so wrong after getting them right for so many years. How businesses go through flushes of world-beating confidence only to be remembered by some old beard decades later.

I guess sports teams are a microcosm of the greater management world- a talented boss can gather a wealth of skilled people and become sucessful, but maintaining that success for decades as people come and go (often to your rivals!) and staving off atrophy seems a bigger challenge than becomming sucessful in the first place.

I think that's why I stick with F1. Even when the racing is poor, the public gossip over hirings and firings, technology development and copying is a form of entertainment in itself.

DanielSan

18,868 posts

169 months

Wednesday 18th March 2015
quotequote all
rubystone said:
Every 675 is sold and most speccced with the £40k of extras considered essential for resale.

Maybe they should just focus on special editions?
It's worked better for them in the past, selling a couple of hundred cars for a bigger profit is easier than a few thousand.

belleair302

6,879 posts

209 months

Thursday 19th March 2015
quotequote all
The Mumtalakat (Bahraini sovereign wealth fund and TAG Mansour Ojjeh) are not what we can consider poor, and will spend money on McLaren and knowing how their sponsorship division works...I was one one of them.....know that Marketing will have a sponsor once the car is back at the sharp end. Alonso comes with private sponsorship and his salary is well taken care of. In 12 months time if things are not so healthy then we shall see. Remember the global economy is weak and companies are just not spending money on sponsorship in the volumes F1 needs....ie £50 million a year plus exploitation.

007 VXR

64,187 posts

189 months

Thursday 19th March 2015
quotequote all
DanielSan said:
Road cars aren't doing aswell as people would think either, they've been over stocking dealers and registering cars but not selling them. Mainly because potential customers are expecting the car they buy to be the 'old' model within 6 months after the 12c/650s debacle.
Ok, laugh

007 VXR

64,187 posts

189 months

Thursday 19th March 2015
quotequote all
How many years did it take Merc to win the World tile ... 9 ?

red_slr

17,468 posts

191 months

Thursday 19th March 2015
quotequote all
I think next year will be make or break for them. If they don't get 3rd or higher next year I can see them having real money problems unless they take some money from somewhere else.