Team Racing Point to be Renamed Aston Martin Racing in 2021

karting · 31 Jan 2020, 08:25 (Ref:3954671)

https://astonmartin.newsweaver.com/i...ent_vfinal.pdf

A small Extract at the end

Aston Martin Lagonda has entered into an arrangement under which the Racing Point F1TM team will become the Aston Martin F1TM works team with effect from the 2021 season, as described above. Under this arrangement, the parties have agreed to use all reasonable efforts to negotiate in good faith with a view to agreeing a formal sponsorship agreement as soon as reasonably practicable, and in any event within 28 days of this announcement.
Further details will be contained in the Combined Circular and Prospectus when published including in relation to the relationship agreement with the Consortium, the F1TM sponsorship arrangement and Mr. Stroll’s appointment letter.

crmalcolm · 31 Jan 2020, 08:40 (Ref:3954673)

An article on racefans related to the story.

Part of this confuses me:

Red Bull confirmed it has “agreed to release Aston Martin from its Formula 1 exclusivity clause which in turn has allowed it to generate the necessary investment required to re-finance and pursue alternative opportunities within the sport”.

and

Aston Martin’s current title sponsorship deal with Red Bull, believed to be worth around $20 million, will end after this season.

If the sponsorship is ending after this season, why would AM need to be released from exclusivity?

MGDavid · 31 Jan 2020, 09:05 (Ref:3954680)

so that they can tell everyone about the future plans with Stroll now and generate more publicity for the road car brand.

midgetman · 31 Jan 2020, 09:18 (Ref:3954681)

Which is what it is all about. Their sponsorship ends and they're trying to generate column inches. Let's see what really happens when it actually happens.

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Mike Harte · 31 Jan 2020, 09:44 (Ref:3954689)

Before everyone gets too excited by this announcement, you should also read this article from today's BBC website that states that Stroll is leading a financial rescue plan for Aston Martin. https://www.bbc.co.uk/news/business-51323241.

I would imagine that the same story is covered by other financial websites.

billy bleach · 31 Jan 2020, 10:56 (Ref:3954713)

Quote:

Originally Posted by crmalcolm

An article on racefans related to the story.

Part of this confuses me:

Red Bull confirmed it has “agreed to release Aston Martin from its Formula 1 exclusivity clause which in turn has allowed it to generate the necessary investment required to re-finance and pursue alternative opportunities within the sport”.

and

Aston Martin’s current title sponsorship deal with Red Bull, believed to be worth around $20 million, will end after this season.

If the sponsorship is ending after this season, why would AM need to be released from exclusivity?

Its business speak for they have been paid off!

broadrun96 · 31 Jan 2020, 13:02 (Ref:3954754)

Quote:

Originally Posted by Mike Harte

Before everyone gets too excited by this announcement, you should also read this article from today's BBC website that states that Stroll is leading a financial rescue plan for Aston Martin. https://www.bbc.co.uk/news/business-51323241.

I would imagine that the same story is covered by other financial websites.

There's been a few rounds of reporting about his groups trying to find the cash to buy out Aston but not much has come of it really. I would venture that this deal shows there's a bit more smoke now and there's something there.

Updated about 40 min ago and appears he has brought money and gets 20% stake in Aston, his consortium brings 182 million pounds and the remaining 318 raised from existing investors. Oh and he's now the chairman after all the ink is dried.

broadrun96 · 31 Jan 2020, 13:04 (Ref:3954755)

Quote:

Originally Posted by MGDavid

so that they can tell everyone about the future plans with Stroll now and generate more publicity for the road car brand.

Quote:

Originally Posted by crmalcolm

An article on racefans related to the story.

Part of this confuses me:

Red Bull confirmed it has “agreed to release Aston Martin from its Formula 1 exclusivity clause which in turn has allowed it to generate the necessary investment required to re-finance and pursue alternative opportunities within the sport”.

and

Aston Martin’s current title sponsorship deal with Red Bull, believed to be worth around $20 million, will end after this season.

If the sponsorship is ending after this season, why would AM need to be released from exclusivity?

I would guess Red Bull has the exclusive rights to negotiate until the end of the term, similar to many athletes not being able to talk directly until the end of the deal. This allows Aston and Stroll to negotiate and develop a new deal. I would guess there is a buyout hidden somewhere in there and an announcement about Stroll leading a consortium to take Aston private again would be forthcoming. (So no buyout but it appears he has brought money and gets 20% stake in Aston, his consortium brings 182 million pounds and the remaining 318 raised from existing investors. Oh and he's now the chairman after all the ink is dried.

And funny enough it would bring Aston cars to the track with Mercedes engines. Wait, that sounds familiar

chillibowl · 31 Jan 2020, 15:40 (Ref:3954797)

pretty smart deal though right?

instead of just pumping his own money into Racing Point, he acquires a new asset by buying into Aston and can now direct the board to use Aston Martin money to fund his racing team.

plus his team gets a much better name!

broadrun96 · 31 Jan 2020, 19:55 (Ref:3954835)

Quote:

Originally Posted by chillibowl

pretty smart deal though right?

instead of just pumping his own money into Racing Point, he acquires a new asset by buying into Aston and can now direct the board to use Aston Martin money to fund his racing team.

plus his team gets a much better name!

And a place to send his son when the F1 talent dries up?

And I'm not begrudging the deal at all. His track record seems to be pretty good with businesses so far.

P38 in workshop · 31 Jan 2020, 22:00 (Ref:3954861)

I was reading earlier that Aston Martin have effectively gone bust 8 times during their existence.Each time an optimist has come along hoping to perform a miracle-rinse and repeat.

Still-its a better name than Racing Point would ever be.

S griffin · 31 Jan 2020, 22:04 (Ref:3954865)

Aston Martin have done well to still be around. Certainly there have been times it has been hanging on to it’s fingernails, we’ll see how it goes now. I feel the team has plenty of potential, so hopefully it can use this season as a launching pad for better things in future. You never know...

GT6 · 3 Feb 2020, 16:43 (Ref:3955504)

Well we will see what happens at Aston Martin, as said before the company needs a fair bit of investment to keep up with the other luxury sports car companies and to be honest i can't see the electric SUV being a massive cash generator

Mike Bell · 3 Feb 2020, 17:44 (Ref:3955514)

Quote:

Originally Posted by GT6

Well we will see what happens at Aston Martin, as said before the company needs a fair bit of investment to keep up with the other luxury sports car companies and to be honest i can't see the electric SUV being a massive cash generator

I think it’s the new Welsh factory being built for the DBX that’s absorbing all the cash. And if that’s the SUV you’re referring to, it’s AMG twin turbo V8- definitely not an EV!

GT6 · 3 Feb 2020, 21:46 (Ref:3955537)

Quote:

Originally Posted by Mike Bell

I think it’s the new Welsh factory being built for the DBX that’s absorbing all the cash. And if that’s the SUV you’re referring to, it’s AMG twin turbo V8- definitely not an EV!

By the time it goes on sale, it will almost certainly have an ev option, By then not sure any car maker will be allowed to have no electric options