The Midland F1 team has been officially sold to Dutch company Spyker, the outfit confirmed tonight.

An official announcement, which was expected this evening, was issued close to midnight at Monza, ahead of the Italian Grand Prix, stating the team was sold in full to Spyker.

"The decision to sell the team has been one of the most difficult I have ever faced," stated Midland Group Chairman Alex Shnaider. "It is never easy to relinquish something into which one has devoted so much energy and passion.

"However, as much as I had hoped to witness the continuing growth of the team under our ownership, I truly believe this transaction is in the best interests of everyone involved - Midland Group, Spyker, and the team."

Shnaider, whose Midland company bought the team from Eddie Jordan at the end of the 2004 season, added: "I am proud to be leaving the team in a much better state than it was when we acquired it 20 months ago.

"Not only is it more financially stable, it is also more competitive at the track, and getting stronger all the time.

"The creation of the 2007 car is well underway, as are major upgrades to the wind tunnel facility. Investment into the team's technical development has continued unabated throughout the season.

"At the moment, Formula One is a much more mature and understood sport in Holland than it is in Russia. I believe the new owners will be well placed to exploit the commercial and nationalistic aspects of a Dutch identity, and this is something that can only benefit the team.

"My partner, Eduard Shifrin, left the decision entirely up to me, since he knows how important it is for me to see the team not only survive, but succeed.

"With this in mind, the new owners have demonstrated their ambitious plans to take the team forward to the next phase of its rebuilding programme.

"Spyker, headed by Victor Muller and Michiel Mol, consists of a strong group of investors with the resources, planning and capacity to further develop the team.

"I am confident that under their leadership, the future of the team rests in good hands, and I would not have agreed to this sale under any other circumstances.

"Midland Group and I have been committed to the team's success from the moment we decided to take it on. We have always been, and will continue to be, Formula One fans, and we wish the sport, the team and its new owners the greatest success in the future."

The full statement by Midland:

The Midland Group of Companies wishes to announce the sale of 100% of its shares in Midland F1 Limited to Spyker Cars NV ("Spyker").

Prior to the sale, Midland F1 Limited headed all Midland Group motorsport activities, including ownership and operation of the Midland F1 Racing team ("MF1 Racing"), which competes in the FIA Formula 1 World Championship.

"The decision to sell the team has been one of the most difficult I have ever faced," stated Midland Group Chairman Alex Shnaider. "It is never easy to relinquish something into which one has devoted so much energy and passion. However, as much as I had hoped to witness the continuing growth of the team under our ownership, I truly believe this transaction is in the best interests of everyone involved - Midland Group, Spyker, and the team.

"I am proud to be leaving the team in a much better state than it was when we acquired it 20 months ago. Not only is it more financially stable, it is also more competitive at the track, and getting stronger all the time. The creation of the 2007 car is well underway, as are major upgrades to the wind tunnel facility. Investment into the team's technical development has continued unabated throughout the season.

"At the moment, Formula 1 is a much more mature and understood sport in Holland than it is in Russia. I believe the new owners will be well placed to exploit the commercial and nationalistic aspects of a Dutch identity, and this is something that can only benefit the team.

"My partner, Eduard Shifrin, left the decision entirely up to me, since he knows how important it is for me to see the team not only survive, but succeed. With this in mind, the new owners have demonstrated their ambitious plans to take the team forward to the next phase of its rebuilding programme.

"Spyker, headed by Victor Muller and Michiel Mol, consists of a strong group of investors with the resources, planning and capacity to further develop the team. I am confident that under their leadership, the future of the team rests in good hands, and I would not have agreed to this sale under any other circumstances.

"Midland Group and I have been committed to the team's success from the moment we decided to take it on. We have always been, and will continue to be, Formula 1 fans, and we wish the sport, the team and its new owners the greatest success in the future."

In October 2004, Midland Group`s involvement in Formula One began when Mr. Shnaider confirmed his plans to lodge an entry for the 2006 season.

Although initially committed to the idea of creating a completely new team for the 2006 season, Midland instead signed an opportunistic deal to buy the Jordan Grand Prix team shortly prior to the 2005 Formula 1 season. As a result, the team competed as Jordan Grand Prix in 2005, and re-branded itself as MF1 Racing for 2006.

"The time-line was tight, but by buying Jordan, we benefited from having a ready-made team: the people, the facilities, the know-how - all the elements we were previously looking to piece together from scratch," recalls Mr. Shnaider. "Entering the sport a year ahead of schedule was easier to execute with an established team, although it still presented us with a steep learning curve in 2005. But that's OK; we learned a lot during the transition."

At the time of its acquisition by Midland, there were few tangible assets in place to ensure the participation of the Jordan team in the 2005 F1 World Championship, which commenced in March 2005 in Melbourne - barely two months after the purchase was completed.

Therefore, the first goal was to ensure that Jordan would participate in Melbourne with three cars, complying with the 2005 FIA regulations. Within a very short timeframe, MF1 Racing managed to fulfill the provisions of Jordan's prior agreement with Toyota, thus enabling receipt of engines.

The team also undertook the task of modifying the chassis to accommodate the Toyota V10 in place of the previous Cosworth powerplant; designing a new gearbox to mate with the new engine; acquiring sponsorships and signing new drivers. In less than two months, the first goal - participating with three cars in accordance with the 2005 FIA regulations - had been achieved.

The next goal was to establish the reliability of the race cars while improving the team's cost efficiency. Existing supplier relationships were examined and replaced where appropriate and where a satisfactory cost/quality correlation would be ensured.

In addition, more work was brought in-house at MF1 Racing to enhance flexibility and cost efficiency. As can be evidenced by both cars' combined race finish ratio of 84% in 2005 and progress to date in 2006, the team's mechanical reliability and consistency of performance has been successfully established.

Phase 3 was the evolution of the 2005 car, the EJ15, and increasing its competitiveness. The EJ15B aerodynamic package, which debuted at the 2005 French Grand Prix, introduced a number of performance gains. More importantly, these concepts set the stage for the development and construction of the 2006 car, the M16, and allowed the team to significantly reduce the gap to its rivals. The team is now, on average, some 2 seconds per lap closer to the front of the grid than it was a year ago.

Off the track, the team's facilities and equipment have been completely refurbished. The paddock hospitality centre has been redesigned and three state-of-the-art technical trailers have replaced the aging fleet of transporters. Investment has also been made in improving the team's factory and wind tunnel facilities, which are in the process of being upgraded in scale from 40% to 50%.

"Our plans for the team were right on target. 2005 was tough, as expected, but we relished the challenge and got on with the job," says Mr. Shnaider. "In 2006, our plans had begun to yield improved results. The team is now a whisker away from the middle of the pack - and getting closer at every race - and its reliability is better than that of a few teams higher up the grid.

"At the factory, everything has been reorganized and the team is poised to break through to the next level. Spyker recognizes that, and we have recognized in Spyker the ability to attract sponsorship from a robust and enthusiastic F1 market. We feel that these sponsor dollars, with an owner's investment similar to ours, will bring the results quicker than it would have under our plan.

"I have experienced the highs and lows of being a team owner, and for the most part, I've enjoyed it immensely. But I do have a number of other business interests apart from F1, which are much more significant in monetary terms, even if they are not as high in profile.

"I generally found time to attend only 5 or 6 race weekends in each of 2005 and 2006, and hopefully I will be able to keep it at that level. Michiel Mol has invited me to come and visit the team whenever I like, and I am looking forward to watching the action and relaxing with my guests in the paddock."

"I would further like to thank everyone who helped us achieve so much in this challenging environment in such a short time: our drivers, mechanics, engineers, designers, factory staff and team management, as well as our suppliers and sponsors. They have all done a wonderful job, and their future in this sport is deservedly bright."


Dutch car maker Spyker has wasted no time following its acquisition fo the Midland F1 team tonight, confirming the appointment of Mike Gascoyne as the new team's Chief Technology Officer.

Gascoyne, who was dismissed by Toyota earlier this year, in April, is currently on a gardening leave and will assume his new role on November 1st.

"Naturally I am delighted to come back to Formula One to a wonderfully challenging opportunity," Gascoyne commented.

"I know and respect many of the people at Silverstone from my time there previously [as Jordan technical director] and I am confident that we will be able to deliver results."

Spyker further revealed the new team will be named Spyker MF1 Racing, with current Midland F1 team chief Colin Kolles keeping his position in the new outfit.

An announcement on the team's engine provider next season would be made soon.

The Spyker company has also revealed details of the purchase, saying it values MF1 Racing at $106.6 million USD.

The agreement further includes the following:

Acquisitionto be finalized by September 30, 2006.
Transaction to be financed by means of a fully underwritten share issue of 2,650,000 shares at €20 per share (totally €53 million, the majority of which will be taken up by Michiel Mol), in addition to an interest free vendor loan for the remainder. The new shares represent 40% of all outstanding shares after the share issue.
All new issued shares shall have a 180 days lock-up
The enterprise value for MF1 Racing amounts to US$106.6 million payable as follows:

Initial payment upon closing per September 30, 2006 of US$68.6 million.
First deferred payment of US$15 million payable on the first anniversary of closing.
Second deferred payment of US$ 23 million payable on the second anniversary of closing.


Earnings per share in the book year 2006 will increase as a consequence of the MF1 Racing acquisition and Spyker Cars expects to be profitable this year.
Transaction subject to approval by the Extraordinary Shareholders Meeting of Spyker Cars N.V. to be held in Zeewolde on Wednesday September 27, 2006 at 14:00 hours.
Welcoming the new outfit to Formula One, commercial rights holder Bernie Ecclestone said: "This is great news for Formula One. The entry of another car manufacturer is a further endorsement of the global appeal of the sport."

Official Quotes from Spyker principals:

Victor R. Muller, Chief Executive Officer of Spyker Cars N.V. and Spyker MF1 Racing: "Since we started the company in 2000 we have seen tremendous growth consistently year on year, basically doubling production every year.

"In order to maintain a strong growth path for a company with relatively limited means for marketing, the entry into the Formula One arena is an unparalleled way to both underline Spyker's commitment to racing and to benefit from a massive increase in brand awareness around the globe.

"It is my strong conviction that Formula One racing transmits values which are entirely in line with our brand values: heritage (as early as 1903 Spyker built the famous six cylinder four wheel drive 60HP Grand Prix racer), design, craftsmanship, performance and exclusivity.

"Moreover we expect that the Spyker road cars will seriously benefit from the F1 technology that we now have in-house.

"I am so proud of our team that worked around the clock to make this deal happen. It proves that the logo introduced in 1914 'nulla tenaci invia est via' still holds true today: for the tenacious no road is impassible.

"We welcome with open arms our new partner Michiel Mol who will join me on the Management Board of Spyker and Spyker MF1. His passion and business sense have paved the way for this transaction. He will make a major contribution to the overall success of both Spyker and Spyker MF1."

Michiel Mol, future director of Formula One Racing for Spyker Cars and Spyker MF1 Racing: "Today my lifelong ambition became reality. After being involved with Formula One as a sponsor of teams and drivers for almost 10 years I will now participate as a shareholder in a very ambitious manufacturer owned Formula One Team.

"Formula One has developed as a challenging platform for building global brands. The new regulations will make this high-profile sport even more attractive. I will definitely use all my skills and experience in digital media to make the team one of the most dynamic and appealing for fans and sponsors.

"The Spyker brand values fit perfectly with F1 and my vision. I look forward to working together with Victor Muller. What he achieved by reintroducing the most famous Dutch car manufacturer brand is impressive. F1 will help to make Spyker even more credible and successful. However, we are not in F1 to be in F1. We are in F1 to win.

"I would like to thank Alex Shnaider and Midland Group for doing such a good job to improve the team and giving us a solid platform from which to launch our program. Without their efforts, none of this would be possible.

"Mike Gascoyne joining us is a milestone and the ultimate proof of our ambitions. Together with Colin Kolles he will be able to build a winning team. Hopefully it will not take too long before we hear the Dutch anthem in Formula One for the first time ever. I have a new challenge and nothing is impossible."

Colin Kolles, Team Principal of Spyker MF1 Racing: "I am happy that the deal has gone through. The acquisition by Spyker as a sportscar manufacturer is the next step toward helping the team improve its results.

"The fact that we have also been able to secure the services of Mike Gascoyne, who will work in collaboration with James Key, clearly demonstrates the team`s ongoing commitment to the strongest possible technical direction.

"I would like to take this opportunity to thank Alex Shnaider for his continuing support. Had Midland not stepped in and rescued the Jordan team in February 2005, we would not be in a position to announce this deal today. His investments and commitment to improving the team`s performance have enabled us to push forward, and for that, we are all extremely grateful."

Mike Gascoyne, Spyker MF1 Racing future Chief Technology Officer: "I have only recently met Victor Muller and Michiel Mol and they impressed me enormously with their commitment to Formula One and performance program.

"Naturally I am delighted to come back to Formula One to a wonderfully challenging opportunity. I know and respect many of the people at Silverstone from my time there previously and I am confident that we will be able to deliver results."

I love it when someone has a passion for something that I will never understand in a zillion years!

At least you care and for that I salute you.

The world needs more people who care about something!

I hated Midland.

I hate it when a team just sells after about a year and a half.