McLaren Racing enjoys surge in profits amid on-track resurgence

©McLaren

McLaren Racing has reported a dramatic financial upswing for 2023, reflecting not only its revitalized on-track performance but also the strategic business decisions that have reshaped team papaya in recent years.

For its fiscal year 2023, McLaren announced in its annual financial report filed with the UK's Companies House a significant 31% increase in revenue compared to 2022, generating £431 million ($573 million) during the fiscal year.

More notably, McLaren turned around its financial fortunes, shifting from a £9 million loss in 2022 to an impressive £30.4 million ($40 million) profit in 2023.

This emergence in profitability highlights the impact of McLaren's strategic changes and improved sporting results across its racing platforms, including Formula 1, IndyCar, Formula E and Extreme E.

Read also: McLaren chiefs open up on key to F1 car's pace and consistency

The group's turnaround in 2023 means a major milestone after a period of financial difficulty and major restructuring that began in 2020, with the onslaught of the global Covid-19 pandemic.

The team laid off staff and sold its iconic McLaren Technology Center in 2021 – which it would lease back – to secure much-needed funds, while minority stakes were sold to various investors.

Earlier this year, Bahrain's Mumtalakat sovereign wealth fund took full control of the McLaren Group, an acquisition that included a majority stake in McLaren Racing, solidifying the fund's commitment to the brand.

A key driver behind McLaren's financial and sporting success has been its increased sponsorship, a trend that started in 2022 and which has since been boosted by the Woking-based outfit's improved on-track results.

And the future looks bright for McLaren, which currently leads the F1 Constructors' Championship for the first time since 2014, as it continues to build on its success and solidify its position as a leading force in motorsport.

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Phillip van Osten

Motor racing was a backdrop from the outset in Phillip van Osten's life. Born in Southern California, Phillip grew up with the sights and sounds of fast cars thanks to his father, Dick van Osten, an editor and writer for Auto Speed and Sport and Motor Trend. Phillip's passion for racing grew even more when his family moved to Europe and he became acquainted with the extraordinary world of Grand Prix racing. He was an early contributor to the monthly French F1i Magazine, often providing a historic or business perspective on Formula 1's affairs. In 2012, he co-authored along with fellow journalist Pierre Van Vliet the English-language adaptation of a limited edition book devoted to the great Belgian driver Jacky Ickx. He also authored "The American Legacy in Formula 1", a book which recounts the trials and tribulations of American drivers in Grand Prix racing. Phillip is also a commentator for Belgian broadcaster Be.TV for the US Indycar series.