Sauber can no longer pay its suppliers
Sauber is experiencing a very challenging start to the season: both on and off the track. The Swiss team is no longer able to pay its bills to suppliers, and its future is in jeopardy.
For a few weeks now, rumors about Sauber’s financial health have become increasingly alarming. To clarify the situation, its leaders have decided to break their silence and have acknowledged the difficulties they are currently facing.
Peter Sauber was therefore the guest on the show Sportpanorama on the Swiss channel SRF, just after the German Grand Prix, where Nico Hülkenberg achieved 10th place and thus a valuable point. The German driver is one of the first affected by the situation of his team since, according to some rumors, he has not been paid for two months already. The team owner therefore denied this possibility and affirmed that he had always paid salaries on time: “In 20 years in Formula 1, we have never paid salaries late.”
As for the contractual situation of his number 1 driver, he is confident about keeping him at least until the end of the current season: « In general, I never talk about contracts, but I am convinced that Nico will stay with us during the second half of the season. »
On the other hand, he acknowledged that he had requested additional delays regarding the payment of invoices owed to his suppliers: « This situation affects not only the development of the car but also the suppliers. In most cases, our request is accepted with understanding. But it is very frustrating and even sometimes painful. » This is not necessarily a big surprise for our loyal readers since the team has made numerous partnership announcements with companies near its Hinwill headquarters. We can therefore imagine that invoices are settled in advertising equivalents to ease the team’s Swiss cash flow.
The key is therefore to find new major sponsors, starting with a title sponsor. Since Peter Sauber bought back his team from BMW, it has not found a company willing to take on this role. Under these circumstances, the financial contribution from Telmex linked to the presence of Sergio Pérez and then Esteban Gutierrez is simply indispensable. Peter Sauber and Monisha Kaltenborn have thus multiplied discussions with potential sponsors, and an announcement could happen soon: “We are very confident in this regard. If it works out well, we will be able to give the green light by the end of the month.” The names mentioned are from the East, as it could be the Russian giant Gazprom or one of the suppliers, SGM Group, owned by the Rotenberg brothers.
But the executives in Hinwil are also working on a second option, in case the first one does not materialize: « It’s a good plan. However, time is the main issue. We lack the funds to continue » because if unpaid suppliers stop working for the team, it will no longer be able to line up on the starting grid.
As a last resort, Peter Sauber would be ready to give up his life’s work and open up the team’s capital to other investors. In any case, he does not consider the possibility of closing his eponymous team: « This is a possibility if there are no other solutions. But we are still far from this decision. Closing the doors is not an option. The passion that drives me helps in situations like this. There is nothing else to do but fight. »
Among the potential buyers is Roman Abramovich, who is already a partner of the team through the Chelsea football club. However, another more original solution has emerged in recent days: Nicolas Todt could be a candidate for a potential buyout. Indeed, the French businessman, son of FIA President Jean Todt, had already applied to enter F1 when the FIA called for applications in 2010. With ART Grand Prix, he has solid experience in managing top teams (3 driver titles in GP2 and undefeated in three years in the Constructors’ championship in GP3). Furthermore, through his activity as a driver manager (Felipe Massa, Pastor Maldonado, and Jules Bianchi for F1 alone), he has strong relationships to attract sponsors to an established team benefiting from top-notch infrastructure since the BMW era.
The next few weeks will be crucial for the future of one of the last 100% independent teams.
With the participation of www.Racingbusiness.fr
