In an unusual move, McLaren is considering mortgaging its vast collection of historic cars, as well its famous Surrey base, to raise up to £300 million in much needed funds.
The collection is one of the most valuable in the world and includes Ayrton Senna’s race winning machines and James Hunt’s M26 Formula 1 car.
The potential move is an attempt to shore up some funds while coronavirus chaos has stalled the car market and seen a huge drop in advertising revenues.
Sources told the BBC that the scheme could potentially raise between £300 million, borrowing against the value of the famous McLaren Technology Centre and the car collection. The loans would be repaid once the F1 season restarts and McLaren can start selling some cars again.
McLaren is remaining officially tight-lipped for the time being, however, with a spokesman saying: “Like many other British businesses McLaren has been severely affected by the current pandemic and we are therefore exploring a variety of different funding options to help navigate these short-term business interruptions.”
It is understood that McLaren was recently denied an application for a loan of £150 million from the Department for Business, Energy and Industrial Strategy (BEIS), which was rejected on the grounds that it has not demonstrated that is has exhausted all possible routes of alternative financing.
Keyword: COVID-19: McLaren considering mortgaging its historic car collection to get through lean times