Sahara Force India is unable to pay its employees’ bonuses
The Constructors' standings have a significant financial impact on the teams but also on their employees. However, it seems that those at Sahara Force India will have to wait before receiving the promised sum due to precarious cash flow.
The Concorde Agreements, the commercial agreements that govern F1, provide for a financial distribution (in part) based on sporting results. For Sahara Force India, securing fourth place in the Constructors’ Championship is thus very good news for the team and its finances.
However, the team’s situation is far from ideal since it should not be forgotten that its two co-owners, Vijay Mallya and Subrata Roy, have significant legal issues with Indian justice. The first is confined to the United Kingdom because his passport has been revoked by India, which is requesting his extradition following the bankruptcy of Kingfisher Airlines, while the second was long incarcerated over a fraud involving small investors.
That’s why the team has a significant need for new funds to secure its future. A solution has been found with the massive arrival of the BWT brand, which has led to a radical change in the team’s visual identity in exchange for an agreement estimated at 15 million euros.
When we met Vijay Mallya in the Silverstone paddock, he also mentioned wanting to change the name of his team, which he considers too geographically restrictive: « It is in realizing that our sponsor acquisitions need to be more global. If the team’s name is restrictive, which is the case with Force India, then we are at a disadvantage. So yes, I can confirm that we are working on it but I cannot tell you when because, even I, do not know. »
If nothing has been revealed on this subject yet, it seems that the team’s treasury is far from favorable during this winter break period, during which the design and manufacturing offices are running at full capacity in anticipation of the quickly approaching pre-season tests. However, FOM payments will only start with the new season, at the end of March.
According to information from the specialized site TheJudge13, the team has therefore been forced to inform all its employees that their £2,500 bonus would not be paid at the end of January and that they would have to wait several more months before payment is triggered.
That the fourth most successful team on the grid is facing cash flow difficulties clearly demonstrates how unequal the current F1 economic model is. This further explains why the team decided to withdraw its complaint to the European Commission. This can only serve in the upcoming negotiations but also to present themselves in a positive light to request an advance of funds.
With the participation of www.racingbusiness.fr
