McLaren Executive Director Zak Brown is confident the British team can cope with the financial fallout from ending their engine partnership with Honda, as a new deal with Renault appears imminent.
As well as their engines, the Japanese manufacturer put a large amount of money on the table when the two parties re-collaborated in 2015 with some putting the figure at around $100m and the cost of Fernando Alonso.
That financial benefit is partly why McLaren has remained strong despite their lack of competitiveness in recent seasons which has led to a reduction in their prize money income, however, for Brown, the loss of that partnership revenue is now worth accepting if better results can be achieved elsewhere.
“We can’t afford not to be on the podium,” Brown said. “It’s a big decision that has lots of elements to it, and economics is one.
“Fortunately we have extremely committed shareholders that we can make a sporting decision and deal with the economics. We’re not financially challenged. We can navigate any financial situation.”
The result of the Renault switch, which now appears certain following the news Carlos Sainz is set to join the French manufacturer as part of the deal that will see them swap Toro Rosso for McLaren, is a loss of that financial boost and the cost of buying engines from Renault.
However, Brown has also previously stated that the poor performance on track has hit the McLaren brand and the attractiveness of the team to potential sponsors, therefore, should the result turnaround, they could recoup some of the large loss.
Another factor is also paying the salary of Alonso, who looks set to renew his contract for at least another season. Still regarded as one of the best on the grid, the Spaniard doesn’t come cheap and McLaren will now have to fit the full cost.
Commenting on his future earlier in the week, amid the Renault rumours, the double world champion would claim his decision was not engine based.
“We will see what happens. There are some options out there and I need to look at all of them and make a decision,” Alonso said. “I don’t think that will happen before Singapore and the team’s engine decision won’t be the most important thing.
“There is always news that is important: the news about LMP1 rules is important; the new IndyCar aero kit is important; Andretti staying with Honda is important news; what engine McLaren will have is important news – there was much important news.”
