Otmar Szafnauer: The F1 Boss Who Paid Millions Out of Pocket to Save His Team’s Spirit

"The amount was in the millions" – The extraordinary tale of an F1 leader who covered his team's salaries

"I had personal funds. I was aware that the wages wouldn't be paid, and I understood how challenging that situation is for individuals."

Otmar Szafnauer, who previously led an F1 team, disclosed that he had to cover the salaries for Force India twice.

Otmar Szafnauer played a significant role at Force India, having first become part of the team located in Silverstone back in 2009.

With him at the helm, Force India advanced in the rankings and gained recognition as a solid midfield team.

Even though Force India had the least financial support and infrastructure among all the teams, they managed to exceed expectations. In the mid-2010s, they frequently secured podium finishes with Sergio Perez.

The team faced challenges when Force India went into administration in 2018, before Lawrence Stroll took over and subsequently rebranded it as Racing Point.

During an interview on the High Performance podcast, Szafnauer explained the reasons behind using his personal funds to cover the team members' salaries.

"He disclosed that it happened on two occasions."

He went on to say, "It really wasn't a lot."

Before disclosing that "the amount was in the millions."

Clarifying the circumstances, Szafnauer stated: "I covered the payment with assistance from my associate at Soft Pauer. We had funds within the company, and I also used my personal finances. I was aware that the wages were not going to be disbursed, and I understood how challenging that would be for the employees."

"Many individuals manage their finances by relying on each paycheck to cover expenses, and I can relate to this situation. We needed to cover the payroll, but the funds from Formula 1 were expected to arrive in five days. For instance, if salaries were scheduled to be paid on a Friday, the Formula 1 funds wouldn't be available until the next Wednesday."

"I had the option to delay the payment instead of handling it on Friday, or I could have used my personal funds and waited until Wednesday to be reimbursed once the Formula 1 funds were available."

Szafnauer admitted that it was a "significant gamble," but he emphasized that his choice to guarantee the payment of salaries was crucial for maintaining team morale.

During the period from that Friday to the following Wednesday, there is a significant concern about the potential scenario where the expected funds might not arrive, Szafnauer explained. He also expressed worry about the possibility that even if the funds are received, another party might demand payment of $2 million, threatening to halt operations if the money isn't paid.

"For five, six, or even seven days, we were consumed by thoughts of 'What if?' I realized that our success was largely due to the strong team spirit and the way we supported and cared for one another."

"There were just about 400 of us, maybe 408 or so, when it all wrapped up. Back then, we were up against teams that had no limits on their budgets, employing around 13,000 to 14,000 individuals."

"Our budget was £90 million for 400 people, while the others had a budget of £250 million."

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