F1 News: McLaren Reveals Staggering Daniel Ricciardo Loss

“A one-off provision for driver costs," was one of the reasons behind a huge expenditure McLaren reported in 2022.

McLaren Racing Limited- the company behind all their racing outfits, including Formula 1, published their annual accounts this week, revealing a loss for the 2022 season. Upon analysis, a key source of expenditure was identified, which turned out to be none other than ex-driver Daniel Ricciardo.

However, the company's £9 million loss was comparatively lower than their numbers in 2021. Had it not been for the expensive termination of Ricciardo, McLaren would have broken even.

Listen To The Latest Driven Mad Podcast Episode

But for several reasons, the team had to let go of the Australian driver a year before their contract ended, forcing them to pay him a reported £14.7 million. However, the move might have benefitted both Ricciardo and McLaren.

The 34-year-old driver found his happy seat with AlphaTauri while the Papaya team chose rookie driver Oscar Piastri as his replacement, who has been doing wonders for the team in his debut season. 

But speaking of finances, the McLaren team operated at a loss in 2022, despite reporting a revenue of £327.892 million. According to Speedcafe.com, the British outfit stated that “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.”

Not only Ricciardo, McLaren spent a handsome amount of money on the construction of its new wind tunnel facility that went live earlier this year. In addition, they also recruited key technical staff like David Sanchez, Rob Marshall, and Peter Prodromou, who replaced former technical director James Key.

Despite the hefty expenditure, McLaren's revenue increased by £115 million compared to the same period in 2021. In addition, Piastri's salary is not said to be as high as Ricciardo's salary, a decision that helped reduce further expenditure. 

What is even better for McLaren is the performance of Piastri, which is far better than the numbers Ricciardo was churning out. With the team on track for a P4 in the Constructors' championship this year, it is bound to bring them a decent amount of prize money (11.3% of the profit), apart from the $30 million it would receive as a heritage payment.

McLaren Press Image