McLaren reveal Daniel Ricciardo-shaped hole in annual accounts

Sam Cooper
Daniel Ricciardo in the McLaren

Bad for his ego but good for his wallet – Daniel Ricciardo made a lot of money from his McLaren sacking.

McLaren have noted “a one-off provision for driver costs” as one of the reasons behind a £9 million loss they recorded in 2022.

McLaren Racing Limited, the company behind their F1 team as well as their IndyCar, Formula E and Extreme E outfits, published their annual accounts this week and with it, they revealed a loss for the 2022 season.

However, that figure was significantly down compared to their 2021 report and had it not been for the expensive sacking of Ricciardo, they may well have broken even.

Daniel Ricciardo leaves mark on McLaren finances

Ricciardo’s departure was a painful one for the driver but any pain he may have felt would have been offset by the reported £14.7 million fee McLaren were forced to pay in order to cancel the Australian’s deal a year early.

That move appears to have worked out for the best for all parties with Ricciardo now performing well at AlphaTauri, while McLaren are more than happy with his replacement Oscar Piastri.

But such a move was not easily absorbed in terms of the finances and despite registering revenue of £327.892 million, the racing team operated at a loss in 2022.

As first reported by Speedcafe.com, McLaren cited “pressures across all costs as well as a one-off provision for driver costs and increased costs related to a return to pre-covid hospitality levels have all contributed to this.”

Away from Ricciardo, there have been plenty of other expenses for McLaren, most notably a new wind tunnel which came online earlier this year.

They have also made new staff signings in the form of David Sanchez, Rob Marshall and Peter Prodromou, who take up the former role of ousted technical director James Key.

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However, it is not all bad news. McLaren’s revenue was up by £115 million compared to the same period in 2021 and Piastri’s salary is estimated to be far lower than what they were paying Ricciardo.

With Piastri also performing far better than Ricciardo, McLaren are on track for at least P4 in the Constructors’ championship which will bring a substantial amount in prize money.

P4 in the table would earn them 11.3% of the profit which if that figure was set at $1 billion, McLaren would receive $113 million. McLaren also receive $30 million as a heritage payment.

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