Manor enter administration, follow collapse in the sale of the team

News

The Manor team have entered administration and face collapse if new investment isn’t found. Through-out the day a number of media outlets have been reporting various lines from sources close to the team.

Efforts are ongoing to save the team, but a deal and discussions so far haven’t resulted in a deal with new investors. Sources have told Sky and BBC News that that staff at Manor’s headquarters were expected to be informed about the developments later on Friday morning.

Its understood that a deal to sell the team to the race promoter Tavo Hellmund, have broken down in the last few weeks, while other  potential buyers appear to have failed to reach a conclusion too.

BBC News that two buyers had made it to the diligence process, however none provided the funds necessary to buy the team, nor was there any proof they had the money to run it. Once again administrator FRP, at aiming to keep the team afloat.

FRP were the administrators who saved  the team in 2014-15 and are aiming to once again.

Sky says that Manor’s parent company – Just Racing Services Limited – was lining up FRP Advisory to act as the administrator. FRP was brought in by Manor’s predecessor, Marussia, at the end of 2014 when that company collapsed with £35 million worth of debts.

Manor suffered a huge blow at the blow late last season when Sabuer leaped above them at the Brazilian Grand Prix, seeing them lose millions of pounds in prize money from FOM. This is understood now to have been the money they needed to stay in business. This funding according to team sources made drivers  and their backers reluctant to commit funds to the team.

All this is bound to reopen the long running arguments over the cost off the sport.

F1 Analyst Jason Fluhrer

“Manor have recently given the news that they are to be entered into administration. This leaves the question what next for Manor? if Manor can get someone to invest in the small British team they should just about have enough money to participate in pre season testing and in 2017.”

“But this pressure if they are able to get investment would mean needing to score at least four points in order to beat Sauber. A year ago we thought that Manor future was bright they maybe in a difficult situation right now, but there future is still bright if they can get the investment they need they could potentially be midfield runners but that all depends on the investment.”

Liberty Media are looking at introducing a budget cap, this story is likely to add fuel to the fire of the debate. Testing is due to begin in a few weeks, would place a further cost burden on Manor which it is currently unable to fund.

Fitzpatrick told the Reuters news agency, terms of a sale to an Asian investment consortium were agreed in December but “time ran out”.  Saying “The dramatic race in Brazil ended our hopes of this result and ultimately brought into doubt the team’s ability to race in 2017.”

“It was imperative that the team finish in 10th place or better in 2016…” FPR are yet to comment.

Jack

Jack is responsible for the day-to-day running of Formula One Vault. He brings you all the brilliant content. Has an obsession with all things Formula One and anything with an engine.

4 thoughts on “Manor enter administration, follow collapse in the sale of the team

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.