From His Own Pocket: The Millions Otmar Szafnauer Spent to Keep Force India Racing Forward

"In the multimillions" – The extraordinary tale of an F1 executive covering his team's salaries

"I had personal funds available. I was aware that the salaries weren't going to be disbursed, and I understood the hardships that would cause for the staff."

Ex-Formula 1 team leader Otmar Szafnauer disclosed that he had to cover Force India's payroll expenses twice.

Szafnauer played a crucial role at Force India, having first become part of the team based in Silverstone in 2009.

Under his guidance, Force India advanced through the ranks and solidified its position as a consistent midfield competitor.

Despite having the lowest budget and smallest facilities among the competitors, Force India consistently exceeded expectations, regularly securing podium finishes in the mid-2010s thanks to the efforts of Sergio Perez.

The journey wasn't smooth for the team as Force India faced financial struggles leading to administration in 2018, which was followed by Lawrence Stroll's acquisition and the subsequent rebranding to Racing Point.

During his appearance on the High Performance podcast, Szafnauer explained the reasons behind funding the team's wages from his personal finances.

"He disclosed it happened two times."

He further stated, "It was not a significant amount."

Before disclosing, they mentioned: "The amount reached into the millions."

Clarifying the circumstances, Szafnauer stated, "I covered the expense with assistance from my colleague at Soft Pauer. The funds were available within the business. I contributed from my personal finances as well. I was aware that the salaries were at risk of not being disbursed, and I understood the hardship that would cause for individuals."

"Many individuals find themselves in a situation where they're just making enough to get by until the next payday, and I get that. We were in a position where we had to cover payroll, with our Formula 1 earnings scheduled to arrive five days later. For instance, if payroll needs to be met by Friday, our Formula 1 funds were expected to come in by the next Wednesday."

"I had the option to delay the payment instead of settling it on Friday, or I could have covered the expense myself and then waited until Wednesday to be reimbursed, when the Formula 1 funds were available."

Szafnauer acknowledged the significant risk involved but emphasized that his choice to guarantee the payment of salaries was crucial for maintaining team morale.

"During the period from Friday to Wednesday, Szafnauer expressed concern over the potential financial instability. He questioned, 'What happens if the expected funds fail to arrive?' He also raised a scenario where, even if the money is received, another creditor might demand a $2 million payment, threatening to close the business if not paid."

"For about a week, we were all caught up in a whirlwind of 'What ifs?' The success we experienced was undoubtedly attributed to our strong sense of unity, the bonds we shared, and our commitment to supporting one another."

"Our team consisted of roughly 400 members, give or take a few, ending up around 408 in total. We found ourselves up against opposing teams that operated without any financial restrictions, boasting staff sizes of around 13,000 to 14,000 individuals."

"We operated with 400 and a budget of £90 million, while the competing group had a budget of £250 million."

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