Marussia go into administration

Marussia have followed Caterham and fallen into administration.

Talk of the financial problems in the Formula One paddock has been rife all season, with teams discussing a desperate need to lower costs in the sport, whilst a contingency plan of teams running a third car have been discussed if three teams leave the sport.

This week that possibility edged a bit closer.

Caterham first fell into administration and will be absent from the grid for both the United States and Brazilian Grand Prix.

Formula One supremo Bernie Ecclestone then announced that Marussia would also be absent, but without any confirmation from the team the paddock was left to speculate the news.

They didn’t have long to speculate however as on Monday morning it was announced that the team had gone into administration.

“Whilst the team has made significant progress during its relatively short period of operation, the highlight of which included securing two constructors championship points in the current F1 season, the position remains that operating a F1 team requires significant ongoing investment,” said joint administrator Geoff Rowley from FRP Advisory LLP in a statement.

“With the existing shareholder [Andrey Cheglakov] unable to provide the required level of funding, the senior management team has worked tirelessly to bring new investment to the team to secure its long term future, but regrettably has been unable to do so within the time available. Therefore, they have been left with no alternative but to place the Company into administration.

“With the Marussia F1 Team now in administration, the joint administrators have assessed that, given the current financial circumstances of the Group, it is not viable for the Marussia F1 Team to participate in the next race, the 2014 Formula 1 United States Grand Prix, due to take place this weekend in Austin, Texas.