As Formula 1’s summer break allows teams and drivers a moment to relax, Force India are fighting to survive with a lot of potential suitors. Who are they?
While a majority of the Formula 1 grid enjoy a much-needed summer holiday, Sahara Force India are scrambling to save their team after entering administration at the Hungarian Grand Prix.
The move into administration clears the way for the team to be sold by releasing the previous owner(s) of their control and placing control into the hands of an administrator who will work with the team to pay off their creditors and allow them to be sold, either as an entire entity or in parts, as was the case with Manor Racing in 2016.
Force India have been in financial trouble since current owner Vijay Mallya was indicted on fraud and money laundering charges in October of 2017. He has since been fighting extradition to the United Kingdom and has been court-ordered to pay his various creditors.
In addition, a lack of sponsors due to the team’s name has fueled speculation that they would have to change their name before any major sponsorship deals can be drawn up. A sale might solve both problems.
Force India have been linked to numerous potential buyers, so we thought we would break down who they are, their likelihood of buying the team and why they would buy team.
Rich Energy
Who: Rich Energy are a United Kingdom-based energy drinks company, which, according to the company’s website, were founded six years ago.
Likelihood of buying: Medium-low. Not much is actually known about the company and their motorsport ambitions. Despite being in the same industry as giants Red Bull and Monster Energy, they have no major sponsorship deals with those in motorsport.
Hours after it was announced that Force India had gone into administration due to court documents filed by Force India driver Sergio Perez, Rich Energy released a tweet claiming that a last-minute £30 million infusion to help Force India stave off administration was rejected.
While it appears that Rich Energy haven’t given up on buying the team, blasting the team’s lead driver for initiating administration proceedings might not buy the company any friends at the negotiation table, especially since it has been reported that Force India backed Perez to make the first move and don’t hold Perez at fault. In addition, Rich Energy’s finances are still a mystery, so one has to wonder if they even have the capital to buy the team despite their initial offering.
Why: It appears that Rich Energy are trying to create a public marketing persona through ownership. However, unlike Red Bull, which sponsor hundreds of events and teams outside of Formula 1 and have an established presence in Formula 1, a massive marketing team and a massive budget, Rich Energy do not have that kind of marketing clout, so diving head-first into Formula 1 is not a solid marketing strategy.
Lawrence Stroll
Who: Lawrence Stroll is a Canadian billionaire investor and the father of Williams Martini Racing driver Lance Stroll. The elder Stroll’s investment portfolio includes investments in high fashion lines such as Tommy Hilfiger and Ralph Lauren. He also owns Circuit Mont-Tremblant in Quebec, which is host to several different race series and is a primary investor in the Williams team.
Likelihood of buying: Medium-high. With his son already in Formula 1 and him being a primary investor in a struggling team, it makes sense that the Canadian investor would want to expand into ownership.
Stroll, however, may encounter difficulty in his pursuit of the Silverstone-based team, as a few team principals, including Claire Williams of Williams, have rejected Force India’s attempt to clear their books to allow them to be sold in fear of creating B-teams.
Opposition by team ownership may make Stroll’s attempt more difficult.
Why: There are rumors that Stroll is buying Force India to ensure that his son will have a seat in Formula 1 regardless of his performance. However, that appears to be hearsay. Stroll is very much a fan of cars, as he owns a collection of Ferraris and the aforementioned racetrack, so perhaps he is just trying to expand his motorsport portfolio.
Dmitry Mazepin
Who: Dmitry Mazepin is a Russian businessman and CEO of Uralchem Integrated Chemicals Company. He has a personal net worth of $1.3 billion with a total net worth of $7.1 billion when including his company, according to Forbes. He i the father of GP3 driver Nikita Mazepin.
Likelihood of buying: High. Mazepin’s net worth and his son’s established connection with Force India as their test driver make the Russian the main player in the Force India sweepstakes. With a net worth nearly three times that of Lawrence Stroll, the elder Mazepin could buy the team with little resistance.
In addition, should Mazepin buy Force India, it would put a Russian team on the grid for the first time since 2015 when Manor Racing operated as Marussia, which they did from the 2012 season through the 2015 season.
It would also lend some legitimacy to the Russian Grand Prix by establishing the race as an established team’s home race rather than a money-grabbing race, which is what it is currently seen as by several fans and pundits.
Why: Some publications have declared that Mazepin is buying Force India to ensure that his son gets a Formula 1 ride. That might be enough, though, for Mazepin, as the Russian doesn’t appear to have any other ties to motorsport other than his son. However, if his only reason for buying Force India is to ensure his son a ride, that could set a dangerous precedent of private buyers buying teams and installing their own drivers, which could dilute the Formula 1 talent pool.
Michael Andretti
Who: Michael Andretti is the 1991 CART champion and owner of Andretti Autosport, which field teams in IndyCar, Indy Lights and Formula E.
Likelihood of buying: Low. There was speculation that Andretti might buy Force India to help expand Formula 1’s United States presence, but he can’t do that alone. Andretti is worth approximately $20 million, which is $10 million less than Rich Energy’s initial cash offer. If Andretti manages to purchase the team, it would have to be part of a consortium.
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With Andretti Autosport are already invested in IndyCar and Formula E, adding a Formula 1 team to their managerial structure may be one series too many. Formula 1 requires a full-time staff, and while Andretti Autosport aren’t lacking in manpower, the Indianapolis-based team cannot afford to split up their staff, especially in the midst of an IndyCar championship battle.
Why: Andretti’s Formula 1 dreams began and died out in 1993 after just 13 races with McLaren, so the idea that he is doing this to fulfill those long-lost dreams isn’t completely out of the question.
However, given the resurgence of IndyCar and Formula 1’s tepid presence in the United States, it is more likely that bringing Andretti into the conversation would allow Liberty Media to expand in the United States while having a leading American owner and popular former driver as the organization’s face.
But other than for United States expansion, Andretti has little interest in Formula 1 aside of potentially stealing Fernando Alonso away to IndyCar in 2019.
If one of the billionaire driver’s fathers buys Force India, as they are the most likely to, it’ll be interesting to see if Force India or whatever their yet-to-be-determined name will be can keep up with the factory efforts of Mercedes, Ferrari, and Renault.