The Force India Formula One team has been placed in administration following financial difficulties. The move comes after actions taken by the team’s own driver, Sergio Pérez. Despite the administration the team is expected to run normally and will be taking part in the Hungarian Grand Prix.
It’s a story all too familiar to Formula One fans. Another Formula One team has been placed under administration, making them the third team to suffer this fate in the past four years. Caterham and Manor both folded after financial troubles and Lotus very narrowly dodged administration back in 2015. Force India becomes the latest team to travel down the path of administration.
FRP Advisory, the same firm that took control of Manor, has taken over Force India on behalf of the team’s creditors. A petition was brought forth to the courts by the team’s number one driver Sergio Pérez over unpaid funds, reportedly totally over £3m. Mercedes has also backed the petition, claiming to be owed over £9m in unpaid fees for engine supply, which has been provided for the team over the past 10 seasons.
The team’s title sponsor Best Water Technology (BWT) has also backed the petition, claiming that their sponsorship deal was a form of a loan for the team.
The team’s majority shareholder Vijay Mallya has been actively looking for a company to buy the team, but has previously stated that he hasn’t received an acceptable offers to buy control of the team. The sale of the team is now under the control of FRP Advisory.
According to Rich Energy, a company that was previously linked to the outright purchase of the team, they offered a last minute sponsorship agreement totaling £30m. However, the team turned down the offer. According to reports, the deal would have involved two payments of £15m but was turned down by Force India, who believed that it was not enough to secure the team’s long-term future.
The team will race in Hungary and is expected to operate as normal while under administration.
