Sergio Perez, Force India, Hockenheimring, 2018

Force India denies it’s facing administration as Perez warns finances are “critical”

2018 German Grand Prix

Posted on

| Written by and

Force India driver Sergio Perez has described its financial situation as “critical” but the team has rejected reports it is about to go into administration.

Speculation about Force India’s future this year has included reports of imminent name changes and takeovers, none of which have yet come to pass.

However Perez, who last month blamed a delay in car upgrades on the team’s ‘financial issues’, issued another warning today.

“At the moment the situation is critical,” said Perez. “There’s no secret that the financial problems have held the team back quite a bit.”

The team’s achievements on a budget which is smaller than most of its rivals’ shows what they are capable of, Perez added.

“When you look at the results, because Formula 1 is just about results, we are fifth in the constructors’ championship, and you cannot imagine the financial issues we’ve had so far. It just shows the potential this team has.”

Reports following the German Grand Prix claimed the team was about to go into administration this week. Earlier this month the team’s co-owner Vijay Mallya told RaceFans the team has “no external borrowing” but confirmed some money is owed to creditors.

Team sources are adamant the situation has not changed and firmly rejected claims administration proceedings are about to begin.

However Perez says he wants a clearer understanding of the team’s financial position before deciding who he wants to drive for in the 2019 F1 season.

“I would like to see what happens in the coming weeks, months, what happens with the team. Because I believe it’s a great team,” said Perez.

“There is also a point on how long you can wait to make up your mind but I think now during the summer break I will have a good idea what’s happening here and then I will be able to make a clear decision,” he added.

Advert | Become a RaceFans supporter and go ad-free

2018 F1 season

Browse all 2018 F1 season articles

6 comments on “Force India denies it’s facing administration as Perez warns finances are “critical””

  1. Adam (@rocketpanda)
    26th July 2018, 17:02

    Is it realistic to believe that Force India could go into administration? Is the financial situation for them truly that dire? If a team like this that has consistently been best of the rest for the last few years is suffering severe financial constraints to this level – to the possibility of being forced out of buisness completely – all the while Ferrari/Mercedes/Red Bull enjoy spending whatever millions they have access to really demonstrates the biggest issue facing Formula One in general. The gap between the leading three and the rest is widening all the time, and it’s not all performance/aero/engine related – one of the biggest barriers is financial. Surely fair distribution of prize money & effective cost capping control has to be a way to avoid this fate? Otherwise, how is an independent team meant to survive, let alone fight against the financial clout of a worldwide car manufacturer? Seeing a sport made up entirely of factory teams leading their satellite teams isn’t a good future either.

    1. came here to comment on it, but you have already summed it up perfectly. I just hope they survive until 2021, but doesn’t look like it.

      It also cast some shadow on the things Vijay as been saying lately

      1. I really like this team, but if you look at all Vijay’s other business dealings, and what he has said about them, he is not someone you really want to take at face value.

    2. just to add, there are rumours that the Stroll family is interested in the team, don’t know if anyone has touched the matter here, or if it is purely a wild speculation flying around

      1. Joao (@johnmilk)
        That the strolls are been mentioned as a possible buyer of FI shows just how desperate the team has become in search of funding.

      2. @johnmilk
        I believe the rumors are primarily about Lance looking for a seat at FI which would mean injection of funds into Force India..I am unsure about the Stroll’s wanting to buy. Apparently, Lance wants a seat in a team Esteban isn’t–>Which then fueled speculation that Esteban could go to Williams.
        This has then been compounded by another rumor that Haas are looking to replace Romain with Sergio.
        @bonbonjai Vijay has given hints that he might come back to India. At Silverstone, he did mention that if a good price was thrown , then a sale (of stake) would be considered.

Comments are closed.