Quote:
Originally Posted by bella
would agree with that - see many retail stores looking to renegotiate their leases with the landlords in hard times.
selling and renting it back is very much something that you only want to do if it's the last chance and you'd be unlikely to survive another downturn. if mclaren have got themselves in that position then borrowing money is going to be expensive for them as well. i'm sure we all know that the key to having a business that'll survive the ups and downs is keeping overheads as low as possible without impacting the actual business. outside f1, the teams in the best shape as we come out of lockdown are the ones who run out of tiny unremarkable sheds and premises that they own rather than rent.
same goes for personal finance which is why the mass switch to leasing cars blows my mind. but that's another rant for another day  |
I think there are a lot of businesses who have paid out hundreds of millions or even billions in dividends over the last few years, that probably wish they still had that money in the bank now. The old adage about a rainy day, was never more relevant (not talking about McLaren specifically) but I feel there are too many businesses that have work on constant projected growth rather than building cash reserves. Whereas the main tech giants have hundreds of billions in cash reserves and could buy more or less any busines they wanted.