What sort of 'investors' could possibly want to put into Prost

[Hugh Jarce]

Like you, I'm watching the news to see if Prost goes 'belly up' - or more accurately, whether it can 'roll back over' again!

But just sitting here, I can't work out what kind of sponsor would want to put in enough to clear the £28M debt and then enough extra to move things on.

I may be being harsh on Prost - but surely it would have to be a very 'stupid' one, with more money than sense!

Now, who on earth could that be?

[Red]

A car maker who wants to buy a f1 team? (Hmmm, the Diniz' Sr. offer to buy Prost GP for $1 doesn't look that ridiculous now I believe). Or Bernie.

[Stephen Green]

I agree, a car maker can only be the sensible solution. If the Diniz family or anyone else of that ilke bought it, it would have to be for a knock down price to enable them to have any chance of funding to improve the long term outlook.

With the way the Far Eastern manufacturers have come on in the past few years, who would bet against one of them picking up the pieces?

[renaultbel]

If I got the money I would pay. I love Prost and I hope to see them in the many years that still have to come

[BD]

Their salvation probably wont come from only one sponsor. There must be dozens of companies that would like to invest in Prost. They may be at the bottom, but they get alot of publicity.
Also it would be a good opportunity for Volksvagen or GM to get involved. But I dont think it will happen.

[Maxmil]

From the tidbits that have emerged in the last few days, I am inclined to believe that the "rescue group", if a successful one emerges will be made up of European individuals. They will be quite wealthy, and will be residents of countries with high tax rates. This will afford them the maximum writeoffs should the venture prove unsuccessful. Since the negotiations have been so protracted, and the deadline postponed so often, I would further guess that the recapitalization will not be as sound as the Court or Alain Prost might have wished. If a well financed proposal were in the works, it probably would have come out before now, and this would include GM, VW and the like. Another point that may be at issue is the degree of control to be exercised by Alain. He may be fighting to keep operational control of the team, which I think may be achieved, but possibly not for long. Hopefully we will all see on Monday, but don't bet on it.

[Super Tourer]

I don't think a manufacturer will buy Prost, if they wanted too they would have done by now. It seems to me that they are trying to cobble together a deal amongst a group of 'smaller' investors - which is why the deal is taking so long to finalise.

Remember, putting aside emotion for AP and his predicament - this is business. Surely the cheapest way to aquire Prost would be for the deadline to expire, Prost to go officially broke (as opposed to in administration) and then 'your buyer' can subsequently buy the lot for nowt as a 'forced' sale - leaving AP to carry the can for the rest.

I can't see the point of anyone parting with £28m to clear old debts then needing at least the same again to run the team for a year, probably to get nowhere.

In terms of new manufacturer, I believe that the next stream of car makers will come in as engine suppliers only. It would be much cheaper and more effective to come in as a supplier to say Sauber or Jordan than to build a complete team and car from scratch. It remains to be seen how Toyota do this year to prove whether this argument proves to be correct!

[Valve Bounce]

The way I see it, a sponsor will not bail out Prost. I suspect that a couple of manufacturers are waiting for Prost to go into receivership, and then try to get the team for next to nothing, with the debts unpaid, and the FIA agreeing not to fine any prospective buyer for missing out on the first few GP's this year. Good drivers are available, and a shrewd manufacturer could use this season to develop the cars on the track hoping to get some points next year.

[Stephen Green]

I agree that to allow the company to officially go broke and then buy it from the liquidators on the face of it, seems a good idea. One problem I foresee is that to enter a new team, I thought you had to use/own an existing name? That may be the stumbling block to allowing it to go broke etc etc.

[Mr V]

a car manufacturer isn't gonna come in at such a late time, pay a hefty ammount of money, stick it's badges on the thing and see it near the back of the grid!

i think toyota has set a precidence now for any major car maker thinking of coming in..at least 1 season of testing before they attempt to race.

[Red]

Toyota delayed their entry because of FIA. They were working for some time at a V12 engine, then the new regulation came: only V10 until 2007. So, with less than a half of year at their disposal they had no engine to test.

[Mr V]

your right red, but i think that most big car makers will see that this is the way to go and follow suit.

the last 2 massive companies (ford/jaguar and bar) just repainted the cars and stuck new stickers on it (not as easy as that i know) and both were expected to do better than they did, esp jaguar, they took over a car which had finished 4th the previous season and did nothing with it.

the days of teams coming into f1 and effectively doing their testing in the races is over (imo of course!!)

[Super Tourer]

Stephen

I can't see that being a stumbling block, as the Prost GP name will be an 'asset' of the business and would be sold along with other equipment, etc.

AP won't be able to keep the Prost GP name as an asset for himself or be able to hold any rights to it under the current situation.

Similarly - BAR bought the Tyrrell team to aquire the entry - but immediately entered as BAR. Paul Stoddard actually bought the 'team' ie. cars and equipment but not the entry.

I believe that under the terms of administration - AP has some say in the direction of the business and involvement in its day to day operation. Once the team is declared bankrupt all the responsibility will pass to the appointed receivers and AP will have no say in what happens or what amounts are raised.

[Red]

Originally posted by mr v
the days of teams coming into f1 and effectively doing their testing in the races is over (imo of course!!)

Errr..... do we forget Renault by any chance?

[Stephen Green]

Cheers ST I hadn't thought of that!