McLaren are open to restructuring Formula One's revenue distribution to make payments less skewed to bigger teams and help smaller ones become more competitive, according to executive director Zak Brown.
"We're prepared to make some short-term sacrifices for the long-term gain of the sport," Brown told reporters at the Austrian Grand Prix.
"While I don't think we need to go to a flat revenue structure, clearly it is too out of balance compared to other sports and that's why we have this out of balance race results."
The news comes just days after The National reported that Bahrain's main sovereign wealth fund will set a new course for the McLaren race car group after wresting full control from Ron Dennis, who announced his official retirement after nearly four decades in the driver's seat.
The US$11 billion Bahrain Mumtalakat Holding Company, which had resisted two attempts by Mr Dennis to buy out its 50 per cent shareholding, as well as the quarter stake owned by his long-time business partner, Saudi Arabia-born Mansour Ojjeh, said after Mr Dennis’ announcement that it would address the company’s future shortly.
“There will be time in the near future to outline our plans,” said Sheikh Mohammed bin Essa Al Khalifa, the executive chairman of McLaren Group, the name the company has reverted to, incorporating McLaren Automotive and McLaren Technology Group, which owns McLaren Racing (competing as the McLaren Honda team).
“The coming months and years will be an extremely exciting time in the story of McLaren,” said Sheikh Mohammed, who is a Mumtalakat board member and senior adviser to the Bahraini Crown Prince Salman bin Hamad Al Khalifa.
Mumtalakat did not disclose the value of the deal, but the group is estimated to be worth about £900 million (Dh4.26 billion).
Mercedes, Ferrari and Red Bull are the only teams to have won Formula One races since Lotus triumphed in Australia in March 2013.
Brown said he aimed to "put Formula One first and McLaren a really close second", and smiled when asked whether all the other teams shared his view: "I doubt it."
Ferrari, champions Mercedes, McLaren and Red Bull currently receive special annual payments to reflect past success and their importance to the sport. Williams also get a smaller 'heritage' payment.
Ferrari, the only team to have been in the championship since it started in 1950 and the most successful, get a special long-standing bonus of around $68 million.
McLaren, still the sport's second-most successful team despite not having won a race since 2012, finished sixth overall in 2016.
However, projected figures published by autosport.com in May showed they stand to be paid US$97m in 2017 compared to the $72m that Force India will receive for finishing fourth.
That still pales in comparison to the $180m paid to Ferrari and $171m going to champions Mercedes. At the end of the scale, newcomers Haas will get only $19m, according to Autosport.
Formula One's underlying revenues are estimated at $1.38bn, with the teams sharing approximately 68 per cent.
"This is a time where I think we need to work together to grow the sport," said Mr Brown.
"I’ve been asked questions on 'do you think you get the right slice of the pie?’ 68 per cent now. Of course I’d love us to have 75 and I’m sure [the F1 owner] Liberty would love to have maybe 55.
"I think the percentage is less relevant if we can double, triple our group or the size of the pool."
Liberty Media, which completed its takeover of Formula One in January, have said it wants to rebalance revenue payments once commercial agreements with teams expire in 2020.
"We've got tracks going bust, we have teams going bust and then some people getting really rich. The poor guys need to at least be able to make a living," said Mr Brown.
"We need to get that water pipe up to where at least if you are at the back of the grid you can make a living and your franchise is worth something and you have the opportunity to move forward.
"I think it would be great to have an underdog team win a couple of times a year."
* Reuters
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The specs
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MATCH INFO
Barcelona 4 (Messi 23' pen, 45 1', 48', Busquets 85')
Celta Vigo 1 (Olaza 42')
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
