Force India to shut down as McLaren, Williams & Renault deny them prize money distribution

Force India are in administration after a hearing between the owners, three creditors(Perez, BWT and Mercedes) and the legal authorities.

The administration period means that Force India can function normally on track, but will need to find investors soon enough in order to exist as an entity.

Sergio Perez was one of the first initiators of the legal proceedings, a move he took in order to save the team and the 400 employees that worked for it.

And while multiple billionaires are interested in buying out Force India and financing it, the team has been hit by a massive problem, one that is sure to result in closing down of the team.

With the investors all but lined up, the biggest problem that Force India faces is from its other midfield rivals as reported by AMuS

In order to function, Force India will have to convince other teams towards the fact that it should be allowed to participate in in the payout of entry fees and TV revenue when changing ownership.

In order to keep their performance prize money bonus after a takeover by new owners Force India needs agreement by all other teams. But McLaren, Williams & Renault denied that approval and put the rescue at risk.

AMuS: https://t.co/2SlTCbwLIX

— Tobi Grüner 🏁 (@tgruener) July 30, 2018

All new teams that enter into F1 of course have to do it from scratch, and with Force India getting taken over by new management, the rules state that all rival teams will have to provide Force India this exception of continuing in the manner that they already were.

Renault, Williams and McLaren have denied the approval to let Force India continue as normal in the payout structure, hence putting the future of the team.

As a result of this move from Renault, Williams and McLaren, Force India would lose close to $ 150 million over a three-year period and will have to shut down.

Renault, Williams and McLaren are looking at the short term advantages of Force India being eliminated from the sport, as they’ll have one less rival to worry about.

However, in the larger scheme of things, F1 will be brought down to just 9 teams and 18 cars and the popularity of the sport would take a massive hit.

The F1 boss had wanted to get signatures by the end of the Hungarian GP, but these three teams have raised concerns and if even one of them doesn’t agree, Force India will have to close shop.