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Shnaider prepared to bail out Spyker F1
Topic Started: Aug 19 2007, 08:02 PM (108 Views)
Steelstallions
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Driver
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http://www.tsn.ca/auto_racing/news_story/?...ame=auto_racing

Quote:
 
"If we are forced to take the team back, then we will fund it in the short term while also looking for the kind of commercial partner I just described."



Shnaider sold the team, formerly known as Jordan Grand Prix, to the Dutch sports car company a year ago. During Midland's ownership reign, Shnaider and the team were criticized for underestimating the financial resources needed to make the team competitive.

"I sold my interest in the team because I judged that it was in the best interests of all concerned, and I have no regrets about doing so," explained Shnaider.

"I know from experience that Formula One is one of the most competitive environments in the world, so I can understand the huge challenge (Spyker) are facing. Regardless of where it sits on the grid, I still believe it has made performance gains. I just think the lack of success this season simply comes down to other teams progressing faster."
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flood1
Chief Engineer
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Shnaider still has rights to the team because they haven't paid him fully. If they default he gets the team whether he wants it or not. He would finance their continuance to avoid depreciating their value to others and to insure that their place on the grid is protected.

Their place on the grid is where the "real" value of Spyker lies.
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Paul_Murtagh
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Does this mean that Schnaider can make a profit on selling the team without actually selling it? If so, I hope he can pump the money back into the team to make them more competitive
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flood1
Chief Engineer
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I don't know how the deal is structured, but this is what I would have done. I sell the team for let's say $100 million (makes the math easy). You have paid me half of that, or $50 million, when you default. I buy back in for 50 cents on a dollar, or $25 million. Now I have the team and $25 million. What I do with the $25 million is my business.

Meanwhile, Spyker puts the $25 million back into their road car division. It's their road car division that is going broke.

Mol gets involved and tries to buy the team from Schnaider for $75 million. Now, Schneider has his original price for his team, $100 million, Mol gets a bargain at $75 million and Spyker get $25 million in cash and writes off the $25 million dollar loss in the exchange with Schneider.

This is the true nature of these transactions even if the facts are wrong.
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