Force India co-owner Vijay Mallya has stepped down as the team’s managing director.
Mallya, who acquired the team in 2008 and branded it as Force India, remains a majority shareholder but is no longer a board member.
He is set to be replaced as director by his son Sidhartha Mallya, who was previously a director at Mallya’s Indian Premier League cricket team Royal Challengers Bangalore.
The team’s management structure will remain largely unchanged, with Robert Fernley continuing as deputy team principal and Otmar Szafnauer continuing as chief operating officer. Subrata Roy, the team’s other majority shareholder along with Mallya, remains chairman.The ownership of Force India is split between Mallya and Roy, who hold 42.5% each, and the Mol family, which owns 15%.
RaceFans understands from a source at the team that Mallya has relinquished the role in order to concentrate on his ongoing legal problems.
Mallya is fighting extradition to India where the authorities are seeking to prosecute him over allegations of fraud. Earlier this month he lost a lawsuit in the UK brought by a group of Indian banks seeking to reclaim £1.15 billion from his companies.
Although Mallya intends to continue as team principal he has been unable to leave the UK following his arrest last year. He has been giving input into the team’s race weekend operations via a dedicated ‘control centre’ set up in his house.
The 62-year-old has also had medical problems. He underwent surgery on his Parotid Gland earlier this month.
This article will be updated.
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tonyyeb (@tonyyeb)
31st May 2018, 11:15
This situation can’t go on for much longer. He’ll probably be forced to sell the team at some point soon, no?
Nitzo (@webtel)
31st May 2018, 11:45
@tonyyeb
Ideally yes. But i don’t think he is considering it yet. He also owns a cricket club in India.
Worth noting that the Chairman, Mr. Subrata Roy, is currently out on parole.
bosyber (@bosyber)
31st May 2018, 12:24
The team is for sale, but I think the owners are still reluctant to acknowledge that they won’t get their asking price
pez2k (@pez2k)
31st May 2018, 19:40
Just so long as they don’t do a Fitzpatrick and hold on to their unrealistic demands until their investment is worth nothing!
BasCB (@bascb)
1st June 2018, 8:15
I understand it is quite likely that before that happens the management will be obliged to step in and make a sale at a lower price to save the team and make sure suppliers and personell are paid @pez2k
Phylyp (@phylyp)
31st May 2018, 11:21
I’ve mentioned this before, but they really ought to give Bob Fernley the title of team principal, seeing as he is in fact performing a lot of that role’s duties.
This made me chuckle – I wonder what sort of input he gives to the race! It would seem that it’s just to make him feel more involved.
I am happy at Mallya’s absence from the pitwall, it avoids tainting the team in any way with all his legal issues. If his extradition/conviction occur, I do hope that it does not impact Force India’s operations.
Chaitanya
31st May 2018, 11:41
The team might end up for sale considering his debt and how Indian government has been taking over the assets owned by Mallya.
tonyyeb (@tonyyeb)
31st May 2018, 11:50
@phylyp
I reckon they’ve set him up with a copy of Motorsport Manager on his PC and told him it’s the live race.
Phylyp (@phylyp)
31st May 2018, 11:54
LOL, @tonyyeb
JMDan (@danmar)
31st May 2018, 22:22
:-)
Gary
31st May 2018, 12:19
“He has been giving input into the team’s race weekend operations via a dedicated ‘control centre’ set up in his house.”
Seriously? Giving advice on what, acceptable champagne brands, whether a particular party girl passes muster, who’s allowed on the yacht? Give me a break.
Green Flag
31st May 2018, 22:56
VJ and Flav. Two peas in a pod.
JohnLee
31st May 2018, 12:24
Lesson: Pay your debts.
Shimks (@shimks)
31st May 2018, 13:12
Sorry, JohnLee; you are sooo wrong.
Lesson: Don’t get caught!
Todfod (@todfod)
1st June 2018, 8:57
The Lannisters agree
Pinak Ghosh (@pinakghosh)
31st May 2018, 13:42
Good riddance.
It is a bit sad though that when eventually Force India change its name, India will no longer have any visible connection in F1. On reflection – India had a track to hold GP, drivers, and principal sponsors for a team.
The only Indian link being Tata Communications as the official connectivity partner.
Goes to show there is definite interest in the subcontinent, but unfortunately, the losses are more than gains.
Singapore is now the best best for an Indian F1 fan.
Chaitanya
31st May 2018, 15:33
Few years back we had worked out that Malaysia was the best value proposition for Indian F1 fan even when compared to Indian track itself. There are rumours of some british energy drinks maker in talks of taking over Force India. Off the 2 owners of that team one is already in jail and other one should end up there soon and it would be do good for Kingfisher airlines employees who were left in lurch after Mallya had defaulted on the loan.
MacLeod (@macleod)
31st May 2018, 21:49
De Mol is still free and kicking good owns only 15% but still the third owner.
Trido (@)
1st June 2018, 0:05
I am surprised it took this long with such a cloud over him. I am a little surprised he wasn’t forced out by F1 itself. It isn’t good for one of their team owners to be heavily implicated in criminal wrong doings.
Todfod (@todfod)
1st June 2018, 6:19
Hopefully his son, Siddhartha won’t really get involved in the management of the team and take his role of managing director seriously. That boy is as daft as they come, so I don’t see Force india benefiting from this at all.
Force india have created a great team over the past few years. If there are any new manufacturers/teams that want to enter the sport, a Force india takeover would be the best way to go.
Loen (@loen)
2nd June 2018, 14:24
There is a sad pattern of…..shall we say….less than legitimate
entreprenurial owners of car racing outfits from way back in
the 1930’s attempting to use their illegitimate cash supplies
to build legitimate F1 teams. Seems to go with the territory.
But I would guess that the current owners of F1 would be extremely
wary of any jack-the-lad-with-a pile-of-cash-&-dodgy-background
trying to muscle in on their shiny, super-legit 2018 model of F1.
They’re filling out all the dents and abrasions to make the whole
F1 package look shiny and new !