Ron Dennis Sells Out
This story should have George, elder Statesman at Fast Machines (sorry George, nothin’ but the truth ’round here!), tipping back a few in celebration.
F1 McLaren boss Ron Dennis has sold the majority of his financial holdings in the F1 team to Bahrain’s Mumtalakat Holding Company who now own thirty percent of the company. Mercedes parent DaimlerChrysler holds 40 percent and Dennis and TAG Group (Holdings) with 15 percent each.
Tuesday’s announcement followed reports in Germany last year that Mercedes were close to buying the remaining 60 percent in McLaren after paying an estimated $400 million for their original stake in 1999.
Not to be lost, and to temper my and George’s celebratory mood, is the announcement that “the company will continue to be managed by its existing management team.”
Which means Dennis still has his finger in the pie. Money talks and he has less invested now, but having sway over the day-to-day operations has the most effect on how McLaren performs.
If McLaren’s reliability doesn’t improve over what it was in 2006 maybe the two largest shareholders, DaimlerChrysler and Mumtalakat, will move to remove Dennis from the picture all together.
Let the Ron Dennis “death watch” begin.
F1, Formula One, FIA, McLaren, Ron Dennis, Sports, Auto Racing, Motorsports, Full Throttle
So old Ron has cashed in, but is still on board.Arrrgghh! But for how long? I have to believe that there is a unannounced transition of management over this season or next. If he & TAG have banked their 30% there must be a plan of succession in place. Mercedes will take over the running of the organisation (something tells me that they will keep Whitmarsh in place as MD). At the same time Mercedes have performed a master stroke, without having to fork over millions of dollars to acquire they outstanding shares, they have gained total control because this new Arab investor will be a silent partner sharing in the profits but not in the management.
Was Ron pushed? I’m guessing MB’s patience had run thin & they were pushing for more control, Ron has sourced a face saving way out for himself. MB must have had some say in the sale, or been offered first right of purchase. If a third party is being brought in MB must be happy with the arrangement otherwise they would have blocked it.
So when will Ronny exit? Late 2007 is my guess. Like Schui, when Ron goes we will probably miss him. His victim’s mentality, inane “logic”, total self centeredness, bad loser/poor winner trait, pompous Ronspeak language…….my God the man has more insecurities that a dog has fleas. I will cut him some slack in being a victim of FIA pro-Ferrari inconsistency in rulings, but lets face it, his team has really only had two good season since the turn of the century.
When he does finally vacate the paddock I’m willing to bet the house that Max will be there to show him the door………..& maybe kick him in the arse on the way through. Frank Williams will be the last of the “old dissenters” left in F1, how long can he & Patrick stay at it? Do they have a plan of succession?
You guys can’t wait to see Big Ron go can you? However, I speculate he’s far from selling out and in fact, while this deal has brought him a big pile of cash, the more interesting move is by Mumtalakat. Note they are owned by the Kingdom of Bahrain…which just happens to host a race. Funny, eh?
Far from being a silent partner, you can bet they will be knee-deep in the politics from the off and in particular making sure of fine performances on home turf.
Rob Jones - “you can bet they will be knee-deep in the politics from the off and in particular making sure of fine performances on home turf.”
And how will they make McLaren’s performance any better at Bahrain?
Pour a bunch of cash into the program?
Toyota and Honda arguably have far out spent each of the other nine teams in F1. How many wins do they have to show for it?
For that matter being “knee-deep in the politics” of F1 will have zero effect for the performance of the team.
For Mumtalakat the move is nothing more than a financial one with the object of making cash for themselves and their investors.
DaimlerChrysler is still in the drivers seat with a 40% stake and as a car company have the most to lose financially and in prestige. Mumtalakat as a minority owner with a near zero association with anything auto related will have very little to say.
And finally, yes Dennis is on the way out. No later than the end of the 2007 season.
If you think you’ve seen the last of The Ronster, think again. As a grandprix.com article points out, the share sale may contain caveats that leave Ron with the voting rights of the shares. I can’t see someone investing millions and not having a say in the running of the outfit, but I’ve also seen dumber moves.
Actually, I applaud Dennis and his fiasco’s. Had he not screwed everything up, JPM might have stayed, and we’d have less to write about this coming season.
I don’t expect JP to make a splash and light up the circuit, but there will be an added color to it that will be interesting to observe.
“The Ronster” George?
Is that anything like a Ronco blender or veggie grater that you can’t get rid of?
We’ll have to disagree George, barring vast turn around, say 3-4 McLaren wins, this year The Ronster is history.
Oh, don’t get me wrong Marc. After JV Ronnie is my favorite guy in F1. I just can’t believe that he’ll go off quietly into the night and leave the spotlight F1 affords him.
The Ronster, in goes the controversial issue of your choice, out comes verbose garbage all for only $49.95!
Dont laugh, I’m serious. It is entirely possible Ron could walk away from F1 to a new career. Like Jeffery Archer & that Canadian import Conrad Black, Ron may feel the need to elavate himself to the house of Lords. A peerage would suit his ego & it’s at the top end of the English political system where its “all care & no responsibility.”
You heard it first here at FT , Lord Ronald Dennis, peer.
Marc, note that the investment is not in the team (McLaren Racing) but in the McLaren Group. A part of this Group has the sole rights to supply all F1 teams with ECUs 2008 - 2010.
So what we have is an organisation that owns a racetrack, owns a team and supplies electronics to competitors. And they have done this purely for investment purposes? I don’t think so. They want influence. Influence like Ferrari cultivated for years.
Influence doesn’t buy wins.
The ECU part of the equation is immaterial. No matter who the FIA offers that contract to it must meet the specs that are pre-determned. Anyone from Bill Gates to some mom-and-pop op deemed by Mad Max or Bernie could provide them.
Sorry, I don’t buy it.
Lord Ronald Dennis, peer? Jeebus Peter. Isn’t the surf up down there? Shouldn’t you be slippin’ on the speedos and hittin’ the Gold Coast?
My brain hurts! Both at your suggestion and the thought of you crammed into speedos.