The fall of Ron Dennis, "one of the great beasts" in the F1 jungle, "has been confirmed," according to Paul Weaver of the London GUARDIAN. The chairman and CEO of the McLaren Group -- but, more than that, the "image and personality of one of the biggest and most successful of F1 teams" -- was told by his fellow shareholders "he must give up his position."
To be red-flagged by his own team "is a sad end for a man whose half-century in F1 has been dominated by his 36-year association with McLaren," which he led to seven constructors’ championships. In recent times, McLaren has "struggled to recapture old glories" and Dennis, 69, "is no longer viewed as the man to revive their ailing spirit." Dennis owns a 25% stake in McLaren, which "he will retain, but it is a figure matched by the Saudi businessman Mansour Ojjeh, his one-time business partner." After a disagreement between the two men, Ojjeh has become more closely aligned with Bahrain’s Mumtalakat investment fund, which owns the other 50% of the shares (GUARDIAN, 11/15). The BBC's Andrew Benson reported Dennis "did not want to step down and failed in a High Court bid last week to prevent McLaren putting him on 'gardening leave.'"
In a statement, Dennis said that he was "disappointed" and called the grounds for his removal "entirely spurious."
He remains on the boards of McLaren Technology Group and McLaren Automotive and "retains significant shareholdings in both." It was felt Dennis' autocratic style "was ill-fitted to growing McLaren in the future."
Dennis said that the other main shareholders "forced through" the decision "despite the strong warnings from the rest of the management team about the potential consequences of their actions on the business." Dennis: "My management style is the same as it has always been and is one that has enabled McLaren to become an automotive and technology group that has won 20 Formula 1 World Championships and grown into an £850M ($1.06B)-a-year business" (BBC, 11/15).
'DIVISIVE FIGURE': SKY SPORTS' Esler & Gill wrote "combative, meticulous and hugely respected," Dennis could also be a "divisive figure inside the sport." Two years after the Spygate scandal, which resulted in McLaren being fined $100M, Dennis "stood down as team principal" in '09 but returned in place of Martin Whitmarsh in '14. Dennis:
"Ultimately it has become clear to me through this process that neither AG nor Mumtalakat share my vision for McLaren and its true growth potential." Dennis "has also overseen the successful launch of a sportscar arm and the diversification of McLaren into a wider technology company."
He now "plans to launch a new technology investment fund once his departure from McLaren is completed." He said, "This will capitalize on my expertise, my financial resources, together with external investment to pursue the many commercial opportunities I have been offered in recent years but have been unable to take up while being so committed to the existing business." Whitmarsh, Ross Brawn and marketing exec Zak Brown "have been touted as potential replacements for Dennis" (SKY SPORTS, 11/15).
