Marussia F1 team could go belly up

UPDATE (GMM) Marussia is in "talks with potential investors" after recording a $79 million loss last year, the business journalist Christian Sylt reports.

Writing in the Guardian, Sylt quoted the backmarker F1 team's chief executive Andy Webb as saying bosses are "in active discussions with potential new investors", and also seeking new sponsorship deals.

Webb added that some of the talks are "well advanced although not yet completed, so the outcome of each remains uncertain".

He said the team's costs had risen because of "significant investment in the team's personnel, infrastructure and factory".

Sylt estimated Marussia's value at about $72 million, and said the team owes $125 million in loans.

The team is however expected to reap millions in Concorde Agreement income, if it can maintain its lucrative tenth place in the 2012 constructors' points standings.

10/31/12 Marussia, the F1 team 29.4% owned by Lloyds Banking Group, "is in talks with potential investors to keep its wheels turning after making a £49M ($78.9M) loss last year. Team CEO Andy Webb said directors were "in active discussions with potential new investors in the business and also pursuing other sources of income including potential sponsorship." The Sheffield-based team joined F1 in '10 and "is likely to be valued at about £45M ($72.6M) — about a quarter of F1's only listed team, Williams."

A disastrous start in '10 "hit the team's finances the following year."

Turnover — mainly derived from sponsorship and prize money — "declined 5% to £28.6M ($46.1M) in the year to Dec. 31, 2011." However, the team's costs rose 11% to £70M ($112.7M), and in turn this widened its net loss by £11 ($17.7M). Webb puts the increase in costs down to "significant investment in the team's personnel, infrastructure and factory." Guardian

Social Media Auto Publish Powered By :