[Team] Marussia - what next?

[old man]

Auction has just started, 10.00am UK time, no item sold yet but first 1000 will be sold today, rest tomorrow.

Speaking personally I would like to follow this but simply cannot afford the time

Wow, what a marathon, if Haas is buying he must have got up early!

[old man]

Cash and secured funds only, + 10% buyers premium and VAT!

[bjohnsonsmith]

Originally Posted by GTRMagic

HaasF1 to bid on Marussia Assets



Maybe somebody over there has beeb reading tenths

I did wonder if that might happen. http://tentenths.com/forum/showpost....&postcount=121

[old man]

Just seen on the Auctioneers website that the cars and race day stuff will not be sold until 21 January!

[JeremySmith]

Originally Posted by bjohnsonsmith

I did wonder if that might happen. http://tentenths.com/forum/showpost....&postcount=121

Mr Haas should buy the whole team lock stock and barrel and re hire the the folks that worked there...

Turn key with people that know what they are doing, racing wise...

[JeremySmith]

Graeme Lowdon is an excellent team principle and human being in my book, listen up Mr Haas...

[GTRMagic]

Looking at the detailed auction catalogs, and the pics of the gear being sold... Haas was mad not to look at picking the whole thing up, lock, stock & barrel

While the Marussia shed doesnt have everything that opens and shuts, what they do have looks in good condition, is <5 years old, and presents well... and perhaps more importantly, could have been procured for cents on the dollar on the new price.



Its sad that people laughed at Marussia for being slow... they didnt lack for intent that is for sure...

[wnut]

Originally Posted by GTRMagic

Looking at the detailed auction catalogs, and the pics of the gear being sold... Haas was mad not to look at picking the whole thing up, lock, stock & barrel

While the Marussia shed doesnt have everything that opens and shuts, what they do have looks in good condition, is <5 years old, and presents well... and perhaps more importantly, could have been procured for cents on the dollar on the new price.



Its sad that people laughed at Marussia for being slow... they didnt lack for intent that is for sure...

I thought Marussia over achieved with the resources they had, and I think there are some very good people to be picked up here!

[GTRMagic]

Originally Posted by wnut

I thought Marussia over achieved with the resources they had, and I think there are some very good people to be picked up here!

Many of whom, as well as the Caterham guys & gals, have hopefully found employment elsewhere in the field already

[GTRMagic]

HaasF1 Buys Marussia Factory Building



And the rights to the 2015 car...

Might have made sense to have bought it full of gear, rather than fit it out again at full price...

[Mike Harte]

Originally Posted by GTRMagic

HaasF1 Buys Marussia Factory Building



And the rights to the 2015 car...

Might have made sense to have bought it full of gear, rather than fit it out again at full price...

I have a feeling that the building was leased by Marussia, not owned by them, which, if that was the case, would be the reason that it was not included in the auction. And, when I last looked at the auction site, there did not appear to be any of the team's transporters' tractor units included; maybe those were also leased?

As far as the rights to the 2015 car are concerned, could it be that they actually are/were the property of Manor or another entity rather than Marussia?

Does anyone know if the auction has now been completed, and, if so, what were the net results?

[GTRMagic]

Originally Posted by Mike Harte

Does anyone know if the auction has now been completed, and, if so, what were the net results?

The auction vendors seem to have detonated the auction listing... but if I recall rightly, there is a quantity of 2014 cars and equipment due for listing or or about 21st January... so its not quite complete.

The auction website did not update the values paid for items sold unfortunately

[Mike Harte]

Originally Posted by GTRMagic

The auction vendors seem to have detonated the auction listing... but if I recall rightly, there is a quantity of 2014 cars and equipment due for listing or or about 21st January... so its not quite complete.

The auction website did not update the values paid for items sold unfortunately

Thanks for that, Mr Magic.

If I remember righltly, you had to pay for the privilege (£250 I think) of having a live link to the auction.

[old man]

Next instalment in this saga:

http://www.autosport.com/news/report.php/id/117284

[chillibowl]

interesting claim that Ferrari are owed close to half of that debt.

interesting because i would have thought Ferrari, above any other team, are in a position to force FOM/CVC into offering the teams, including the smaller ones, more favourable terms.

rather, the more prize money handed out to the smaller teams means the bigger teams can charge more for power units and other services while maintaining a greater expectation of repayment.

on the surface anyways it seems like if Marussia got more money from FOM/CVC then Ferrari would have stood a better chance of being repaid and for holding on to a customer for 2015.

[Mike Harte]

Originally Posted by old man

Next instalment in this saga:

http://www.autosport.com/news/report.php/id/117284

When you read the whole article:

The Marussia Formula 1 team collapsed owing trade creditors £31.4 million - with Ferrari alone owed more than half that amount.

A summary of the liabilities of the team that has been submitted to the High Court by Marussia's administrators FRP Advisory LLP has revealed the extent of the money owed by the team.

As well as the fixed and floating charges of £13.1 million owed to Lloyds TSB and £14.6 to Marussia Communications, the document breaks down how much is owed to trade creditors.

The three biggest creditors are Ferrari (owed £16.6 million), McLaren (owed £7 million) and Pirelli (owed £1 million).

Also included on the list is former driver Timo Glock, who is owed more than £600,000. A number of F1 circuits and the FIA are also on the list.

The British tax authorities, HMRC, are owed £1 million for outstanding tax and national insurance payments.

Another major creditor is Capsicum Grand Prix Ltd., which represented Max Chilton's interests in F1 and is owed £3.1 million.

The statement of affairs says that Marussia's assets of £6.3 million are only likely to realise £2.2 million.

The total estimated monies owed to creditors, taking into account floating charges, is £62.3 million.

However, when issued and called up capital is taken into account, the estimated final figure of liabilities is £194.7 million.

Marussia's ninth place in the constructors' championship last year put it on course for £35 million prize payment this season, but the team would have to race to qualify for it.

then the headline "Marussia Formula 1 team collapsed with £31m debt" is very misleading. However, the point about the called up share capital is intriguing; to whom does Marussia owe it to?

All in all, it does not seem as though their business model of outsourcing has been the magic formula that some have suggested is the way forward, and if other reports are accurate, then the prospects for this team were progressively worsening. Below quoted from Pitpass about a week ago ( http://www.pitpass.com/53157/Marussi...lack-of-offers ):

Writing in the Daily Telegraph, Pitpass' business editor Christian Sylt reports that the team made a net loss of £11m in 2013 and lost a further £29.2m in just the first eight months of this year. Even its GP3 team was a drag on resources and lost £180,000 last year.

[P38 in workshop]

The prize money they would have received had they continued to exist would have gone a long way to changing the picture.Do we know who the people are that might be held to account?Those likely to feel the most pain will be the small suppliers,the likes of Ferrari can more easily absorb the loss.The catering contractors and vendors of consumables don't have major corporations to help out.Lloyds banking group seem to have been a bit cavalier,which might be why the British taxpayer had to prop them up-and still do.

[GTRMagic]

Originally Posted by P38 in workshop

The prize money they would have received had they continued to exist would have gone a long way to changing the picture.Do we know who the people are that might be held to account?Those likely to feel the most pain will be the small suppliers,the likes of Ferrari can more easily absorb the loss.The catering contractors and vendors of consumables don't have major corporations to help out.Lloyds banking group seem to have been a bit cavalier,which might be why the British taxpayer had to prop them up-and still do.

Funny how this statement is being repeated around the place, that the 2014 prizemoney would have been the panacea to cure the ails.

Except Marussia fell over because their owner chose not to continue to pay to keep the doors open. They had few commercial sponsors on the car, and it was up to the owner to top up the budget.

Which he likely would still have to do in season 2015, as the prizemoney would barely have scratched the surface of the operating costs of the team...

Still sad

[P38 in workshop]

Originally Posted by GTRMagic

Funny how this statement is being repeated around the place, that the 2014 prizemoney would have been the panacea to cure the ails.

Except Marussia fell over because their owner chose not to continue to pay to keep the doors open. They had few commercial sponsors on the car, and it was up to the owner to top up the budget.

Which he likely would still have to do in season 2015, as the prizemoney would barely have scratched the surface of the operating costs of the team...

Still sad

Thankfully,I am sufficiently financially literate to understand the extent to which the prize money would have financed the season.What it might have done was to allow a bit more time at least to find some funding to operate with.It could have formed the basis for an IVA to allow some money to flow to the creditors and a reborn company to go forward.By continuing to operate and provide a car for Tom Chilton,some more money would have flowed.A running car for 2015 would have been available for Friday morning hire or for young driver days.Operating a car would have given the marketing men a basis for selling sponsorship and VIP days out.Not enough to be competitive in all probability,but a basis for trading and regrouping.

It also looks from the figures that the financial controllers made the mistake of allowing the company to trade when there was little chance of meeting their obligations.Clearly the agreement with the nominal owner failed to lock in the funds and there must have been some communications between the parties.

[Mike Harte]

P38, one thing that you seem to be overlooking is that the prize money would not be due for payment to the teams until after the 2015 season would be already under way, something like the end of April.

How do you propose that the team would finance themselves until then? And do you honestly believe that their major creditors would have allowed the team to carry on "trading" in view of the horrendous losses that they have already made, with no realistic way that they would probably receive what was already owed to them?

It gives me no pleasure whatsoever to say that you really are flogging a dead horse.

[old man]

I rather think that the administrator would be acting illegally if he allowed them to continue trading when insolvent. Is it not the case that the prize money is fed in race by race and not in one lump?

The Russian economy and exchange rate would be against that backer putting in running money

If Mr Haas had bought the entity then he would have had the rights to the money but I think only by racing in 2015 and his plan is to be there in 2016.

[old man]

Discussion on the Haas thread suggest he has bought the Marrusia chassis.

If Hass has these he must have some idea of running them and the suggestion is as a test car for the power unit and gearbox. To do that he would need some engineers with an understanding of the chassis and so he would not race the car but it is being suggested he could test the mule to gather data for his own design.

Ideally he would also need proper tyres but it may be possible to get other rubber just for experimental testing

[steve_r]

The 2014 Marussia cars have not been sold yet. (Unless the auction website is wrong)

[GTRMagic]

Originally Posted by steve_r

The 2014 Marussia cars have not been sold yet. (Unless the auction website is wrong)

I thought the HaasF1 purchase was fir the IP of the 2015 design?

[GTRMagic]

Originally Posted by P38 in workshop

Thankfully,I am sufficiently financially literate to understand the extent to which the prize money would have financed the season.What it might have done was to allow a bit more time at least to find some funding to operate with.It could have formed the basis for an IVA to allow some money to flow to the creditors and a reborn company to go forward.By continuing to operate and provide a car for Tom Chilton,some more money would have flowed.A running car for 2015 would have been available for Friday morning hire or for young driver days.Operating a car would have given the marketing men a basis for selling sponsorship and VIP days out.Not enough to be competitive in all probability,but a basis for trading and regrouping.

It also looks from the figures that the financial controllers made the mistake of allowing the company to trade when there was little chance of meeting their obligations.Clearly the agreement with the nominal owner failed to lock in the funds and there must have been some communications between the parties.

I hear you... but there doesnt seem to be much goodwill from anywhere towards Marussia's financial plight umfortunately