Marussia F1 Team In Talks With Investors After $78.9M Loss
Marussia, the F1 team 29.4% owned by Lloyds Banking Group, "is in talks with potential investors to keep its wheels turning after making a £49M ($78.9M) loss last year," according to Christian Sylt of the London GUARDIAN. Team CEO Andy Webb said directors were "in active discussions with potential new investors in the business and also pursuing other sources of income including potential sponsorship." The Sheffield-based team joined F1 in '10 and "is likely to be valued at about £45M ($72.6M) -- about a quarter of F1's only listed team, Williams." A disastrous start in '10 "hit the team's finances the following year." Turnover -- mainly derived from sponsorship and prize money -- "declined 5% to £28.6M ($46.1M) in the year to Dec. 31, 2011." However, the team's costs rose 11% to £70M ($112.7M), and in turn this widened its net loss by £11 ($17.7M). Webb puts the increase in costs down to "significant investment in the team's personnel, infrastructure and factory" (GUARDIAN, 10/31).