The Force India Formula 1 team co-owned by Vijay Mallya has been in deep financial trouble for a while now. With rumours of the team shuttin...
The Force India Formula 1 team co-owned by Vijay Mallya has been in deep financial trouble for a while now. With rumours of the team shutting down day-to-day operations, Sergio Perez, one of the current drivers approached courts in the United Kingdom. His move was prompted by the fact that last Wednesday (July 25, 2018), one of the creditors who is owed money by the team approached the courts in order to get a 'wind up' notice, which would have meant immediate stopping of all activities and possibly selling off team assets to make sure the creditors are paid. Sergio Perez's legal team alternatively requested the courts to put the team under 'Administration', which allows the company (or team in this case) to operate until a new buyer is found. The British Courts, in an urgent hearing on July 27, 2018 has appointed an 'Administrator', which means that the Force India team will continue its racing for now. The team will now be looking for a new buyer, which in all likelihood is expected to be Lawrence Stroll, father of current Williams F1 driver Lance Stroll.
(Force India driver, Sergio Perez)
Sergio Perez also put out a statement saying, "The team is now in the hands of an Administrator who can sell the team and save the jobs of 400 amazing people that work at the team. It has been very stressful months, but it is important to do the right thing and I think the team will now have a very bright future." The Mexican F1 driver is currently owed about $4 Million while engine suppliers Mercedes-Benz are allegedly owed about $15 Million.
This comes as good news for the team since they are involved in a neck-in-neck fight for the 4th place in the constructor's championship currently. The team has finished in 4th position in the constructors title fight for the last two years, behind the giants Ferrari, Mercedes-Benz and Red Bull making them effectively, the best of the rest. Force India's chief operating officer Otmar Szafnauer at a recent press conference also said that "much needed investment in the team is imminent."
According to a report by ESPN, the joint 'Administrator' that has been appointed, Geoff Rowley said, "We shall be engaging with key stakeholders on an urgent basis to secure the best outcome for creditors. In the meantime, the team will continue to operate as normal, including racing in Hungary this weekend. Our aim is for business as usual whilst we assess options to secure the future of the team."
(Force India also races in Formula 3 with Indian driver Jehan Daruvala)
That said, it is not only Formula 1 that the Force India team is involved with but also lower level racing championships like Formula 3. The team, in partnership with Carlin Racing has been doing really well in Formula 3 with Indian rising star Jehan Daruvala winning (or on the podium) on a regular basis.
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