The situation was bleak. Very bleak. It had been nearly a month and Sauber's staff had not received their wages for May. This came after three successive months of being paid at least a week late. Understandably, there was growing uncertainty among staff. They had bills to pay, families to feed. An emergency fund existed for such a situation, helping staff financially in the interim. But the pressure and stress remained.
Then last week, a sense of relief swept through the corridors of Hinwil as the news its staff had been waiting to hear arrived. Stood side-by-side, owner Peter Sauber and team boss Monisha Kaltenborn revealed the Swiss team had changed ownership, with a financial investment firm taking over. Sauber declared the future of the outfit was now secure.
But how did it get to this stage in the first place?
The team's situation has been precarious since BMW pulled out at the end of 2009 and Sauber stepped in to save the outfit he had brought into F1 23 years ago after a long sportscar stint ended with representing Mercedes in Group C. It was more than a team to him. It was an extended part of his family. It grew up around him, developing into a very respectable operation. Keeping the team alive, and therefore saving the jobs of the 350-strong staff, was a must for Sauber.
The next few seasons have been incredibly challenging. In 2013, Sauber announced it had secured funding from a group of Russian companies but that never materialised. The following year, it failed to score a single point for the first time in its history.
A year later, it was in court on the eve of the season courtesy of Giedo van der Garde, who was one of three drivers on the books but with only two race seats available. On track that season at least proved more encouraging - Ferrari made a step forward with its engine, allowing Sauber to score points on 11 occasions. But this year, there has been no saving grace.
A lack of sponsorship income left the team on the brink. The car had hardly any sponsors when it launched and little has changed since. It missed the first pre-season test and before this weekend the C35 has been almost identical to the specification in which it was launched in March.
Felipe Nasr and Marcus Ericsson's backers were keeping the team afloat, with the latter stepping in at one stage with advanced sponsorship payments to help pay staff salaries for March, but there was no money to make progress. Morale was at an-all time low.
The team that travels to grands prix fought on, turning up to each race and giving it everything they had. At least they could see the fruit of their efforts in the form of the cars hitting the tracks. The same could not be said for those back at base. Developments were conjured up but there was no money to realise them.
Kaltenborn's demeanour was downbeat, too. The pressure on her to find a solution to save the team she had been entrusted with by Sauber was intense. She gave few, if any, interviews. Her time in the paddock was kept to a minimum. Instead, she was back at headquarters, speaking to interested parties and trying to thrash out a deal.
So how did Sauber turn things around?
Something changed around Monaco. After the race, Kaltenborn had every reason to be annoyed. Her drivers had committed a cardinal sin and collided, forcing a double retirement. She was frustrated but it felt like that was only a small irritation in what was now seeming to be a rosier situation. Her smile was back, a conversation lasted more than a few words. Sources at the time suggested a deal was in the offing, but not yet over the line.
It has since emerged talks with Longbow Finance had begun and were at an advanced stage. Kaltenborn remained tight-lipped. She wanted absolute certainty before discussing it. There had been talks with several parties, including with Russian and Middle Eastern investors, but Longbow Finance emerged as the most serious.
The deal was thrashed out relatively quickly, over months rather than years, but there were still many details to be ironed out to enable Sauber, Kaltenborn and the Swiss finance company's interests to be aligned.
Sauber's Swiss base meant wages were high. The team also struggles to attract the best engineers in the world, as many of them reside in the UK's motorsport valley where eight of the 11 teams are based. Kaltenborn also wanted to remain as part of the team, which is believed to have been a stumbling block with some potential partners, and the current financial climate has made it difficult for teams up and down the grid to attract sponsors to boost the coffers. All these factors had to be taken into account when reaching a deal.
When June's pay day arrived, so did the salaries. It was the first time that had happened since January. Progress had been made. Staff were then called into a meeting in the factory and told that a "solution" had been found.
Then last Tuesday, the contract was inked, the deal done. In doing so, Kaltenborn relinquished her shares, of which she held around a third, but retained her role as CEO and team boss and also has a place on the board.
However, Sauber gave up his two thirds and will retire, ending his participation in the sport after over four decades. It was an incredibly difficult decision, given the team had grown up around him. But in making those decisions, Sauber and Kaltenborn have kept the Sauber name in F1 for a little bit longer.
"It's a big relief," Kaltenborn told Autosport. "We are thankful that we have new owners who have shown in such difficult financial times a trust in us and a willingness to secure the Sauber brand. I'm grateful they saw the strengths in the team. These people coming in, they are giving the staff security and the motivation is there to work again. You can see it in their body language."
Longbow Finance says it has dealt in financial investments for over 20 years. It is a Swiss company believed to have many international clients. Its core business is dealing with private equity for clients and managing investments. The CEO and new chairman of Sauber Holding AG is Pascal Picci, a businessman who has also been company secretary for an organisation called Sportpro Limited since 2013.
It was incorporated in December 2006, just before Marcus Ericsson's first year in single-seaters in Formula BMW UK. Documents from 2014 reveal Sportpro loaned money to M E Promotions Ltd, which is believed to have trademarked Ericsson's personal logo.
Longbow Finance's priority is to stabilise the team before setting out the parameters to enable it to become competitive again. Kaltenborn is convinced the deal with the new owners represents the best chance for long-term success.
"It is the best solution for our employees, our partners and the whole base that we have," she said. "They see us as an investment. It is a very serious company, it's active in financial investments and there is no reason to doubt anything."
Key to making the investment work will be expanding Sauber's third party business, which Kaltenborn has hinted at during the announcement. This will involve fully utilising its state-of-the-art windtunnel. The 100% rolling road tunnel is operated at 60% for F1 purposes but also rented out to a string of clients. Audi is believed to be one, using the facility for its Le Mans and DTM programmes. It has been used in the past for bobsleigh development while two-wheel companies have also made enquires.
Maximising its use will only serve to strengthen the Formula 1 team's foundations. It also wants to expand the engineering side of the business, which is similar to Williams's Advanced Engineering arm. "We are already doing a lot," said Kaltenborn. "It is quite significant to our business but there is a lot more room to grow there. We have high targets. We want to strengthen and look at what new areas we can enter."
This deal is good news for Sauber and Formula 1, as it keeps one of the championship's longest-serving teams in situ. But it remains a long way from having its future secured. Pascal Wehrlein's point for Manor in Austria left Sauber in 11th in the constructors' championship, which will impact on its share of the prize money next season if it can't move ahead, so attention has to be paid to regaining 10th at the minimum.
That can now happen with funds available to push through updates that have been sitting on the shelve for months, with a front wing and floor modifications expected after the summer break, to join the new rear introduced at the Hungaroring following trials at Silverstone.
Equally, it needs to get to work on its 2017 car, which has been put on the backburner given the financial situation, and begin recruiting again, starting with a technical director to ensure leadership in the design phase and a chief race engineer, positions which have remained vacant for several races now.
These are the kinds of conversations that will be happening right now, with the decisions made in the coming weeks set to shape the team's future in F1.
The situation was bleak. Very bleak. It had been nearly a month and Sauber's staff had not received their wages for May. This came after three successive months of being paid at least a week late. Understandably, there was growing uncertainty among staff. They had bills to pay, families to feed. An emergency fund existed for such a situation, helping staff financially in the interim. But the pressure and stress remained.
Then last week, a sense of relief swept through the corridors of Hinwil as the news its staff had been waiting to hear arrived. Stood side-by-side, owner Peter Sauber and team boss Monisha Kaltenborn revealed the Swiss team had changed ownership, with a financial investment firm taking over. Sauber declared the future of the outfit was now secure.
But how did it get to this stage in the first place?
The team's situation has been precarious since BMW pulled out at the end of 2009 and Sauber stepped in to save the outfit he had brought into F1 23 years ago after a long sportscar stint ended with representing Mercedes in Group C. It was more than a team to him. It was an extended part of his family. It grew up around him, developing into a very respectable operation. Keeping the team alive, and therefore saving the jobs of the 350-strong staff, was a must for Sauber.
The next few seasons have been incredibly challenging. In 2013, Sauber announced it had secured funding from a group of Russian companies but that never materialised. The following year, it failed to score a single point for the first time in its history.
A year later, it was in court on the eve of the season courtesy of Giedo van der Garde, who was one of three drivers on the books but with only two race seats available. On track that season at least proved more encouraging - Ferrari made a step forward with its engine, allowing Sauber to score points on 11 occasions. But this year, there has been no saving grace.
A lack of sponsorship income left the team on the brink. The car had hardly any sponsors when it launched and little has changed since. It missed the first pre-season test and before this weekend the C35 has been almost identical to the specification in which it was launched in March.
Felipe Nasr and Marcus Ericsson's backers were keeping the team afloat, with the latter stepping in at one stage with advanced sponsorship payments to help pay staff salaries for March, but there was no money to make progress. Morale was at an-all time low.
The team that travels to grands prix fought on, turning up to each race and giving it everything they had. At least they could see the fruit of their efforts in the form of the cars hitting the tracks. The same could not be said for those back at base. Developments were conjured up but there was no money to realise them.
Kaltenborn's demeanour was downbeat, too. The pressure on her to find a solution to save the team she had been entrusted with by Sauber was intense. She gave few, if any, interviews. Her time in the paddock was kept to a minimum. Instead, she was back at headquarters, speaking to interested parties and trying to thrash out a deal.
So how did Sauber turn things around?
Something changed around Monaco. After the race, Kaltenborn had every reason to be annoyed. Her drivers had committed a cardinal sin and collided, forcing a double retirement. She was frustrated but it felt like that was only a small irritation in what was now seeming to be a rosier situation. Her smile was back, a conversation lasted more than a few words. Sources at the time suggested a deal was in the offing, but not yet over the line.
It has since emerged talks with Longbow Finance had begun and were at an advanced stage. Kaltenborn remained tight-lipped. She wanted absolute certainty before discussing it. There had been talks with several parties, including with Russian and Middle Eastern investors, but Longbow Finance emerged as the most serious.
The deal was thrashed out relatively quickly, over months rather than years, but there were still many details to be ironed out to enable Sauber, Kaltenborn and the Swiss finance company's interests to be aligned.
Sauber's Swiss base meant wages were high. The team also struggles to attract the best engineers in the world, as many of them reside in the UK's motorsport valley where eight of the 11 teams are based. Kaltenborn also wanted to remain as part of the team, which is believed to have been a stumbling block with some potential partners, and the current financial climate has made it difficult for teams up and down the grid to attract sponsors to boost the coffers. All these factors had to be taken into account when reaching a deal.
When June's pay day arrived, so did the salaries. It was the first time that had happened since January. Progress had been made. Staff were then called into a meeting in the factory and told that a "solution" had been found.
Then last Tuesday, the contract was inked, the deal done. In doing so, Kaltenborn relinquished her shares, of which she held around a third, but retained her role as CEO and team boss and also has a place on the board.
However, Sauber gave up his two thirds and will retire, ending his participation in the sport after over four decades. It was an incredibly difficult decision, given the team had grown up around him. But in making those decisions, Sauber and Kaltenborn have kept the Sauber name in F1 for a little bit longer.
"It's a big relief," Kaltenborn told Autosport. "We are thankful that we have new owners who have shown in such difficult financial times a trust in us and a willingness to secure the Sauber brand. I'm grateful they saw the strengths in the team. These people coming in, they are giving the staff security and the motivation is there to work again. You can see it in their body language."
Longbow Finance says it has dealt in financial investments for over 20 years. It is a Swiss company believed to have many international clients. Its core business is dealing with private equity for clients and managing investments. The CEO and new chairman of Sauber Holding AG is Pascal Picci, a businessman who has also been company secretary for an organisation called Sportpro Limited since 2013.
It was incorporated in December 2006, just before Marcus Ericsson's first year in single-seaters in Formula BMW UK. Documents from 2014 reveal Sportpro loaned money to M E Promotions Ltd, which is believed to have trademarked Ericsson's personal logo.
Longbow Finance's priority is to stabilise the team before setting out the parameters to enable it to become competitive again. Kaltenborn is convinced the deal with the new owners represents the best chance for long-term success.
"It is the best solution for our employees, our partners and the whole base that we have," she said. "They see us as an investment. It is a very serious company, it's active in financial investments and there is no reason to doubt anything."
Key to making the investment work will be expanding Sauber's third party business, which Kaltenborn has hinted at during the announcement. This will involve fully utilising its state-of-the-art windtunnel. The 100% rolling road tunnel is operated at 60% for F1 purposes but also rented out to a string of clients. Audi is believed to be one, using the facility for its Le Mans and DTM programmes. It has been used in the past for bobsleigh development while two-wheel companies have also made enquires.
Maximising its use will only serve to strengthen the Formula 1 team's foundations. It also wants to expand the engineering side of the business, which is similar to Williams's Advanced Engineering arm. "We are already doing a lot," said Kaltenborn. "It is quite significant to our business but there is a lot more room to grow there. We have high targets. We want to strengthen and look at what new areas we can enter."
This deal is good news for Sauber and Formula 1, as it keeps one of the championship's longest-serving teams in situ. But it remains a long way from having its future secured. Pascal Wehrlein's point for Manor in Austria left Sauber in 11th in the constructors' championship, which will impact on its share of the prize money next season if it can't move ahead, so attention has to be paid to regaining 10th at the minimum.
That can now happen with funds available to push through updates that have been sitting on the shelve for months, with a front wing and floor modifications expected after the summer break, to join the new rear introduced at the Hungaroring following trials at Silverstone.
Equally, it needs to get to work on its 2017 car, which has been put on the backburner given the financial situation, and begin recruiting again, starting with a technical director to ensure leadership in the design phase and a chief race engineer, positions which have remained vacant for several races now.
These are the kinds of conversations that will be happening right now, with the decisions made in the coming weeks set to shape the team's future in F1.
