In a strange turn of events, McLaren, the leading Formula 1 team, is set to face a substantial financial loss as it is unlikely to receive a seven-figure sponsorship fee that has been outstanding. The money, originating from a controversial ex-sponsor, Huski Chocolate – a Swedish company, is now almost certainly lost as the company’s parent firm, Choki AB, filed for bankruptcy earlier this year.
The Huski Chocolate brand was prominently featured on McLaren’s rear wing in 2019 as part of a three-season sponsorship agreement. However, since 2021, the brand has disappeared from McLaren’s cars, following a dispute over an unsettled €4.66 million deal revealed in court documents.
What has transpired between McLaren and Huski Chocolate is the final chapter in a peculiar tale. Huski, a hot chocolate brand primarily marketed at alpine ski resorts, came under fire from its own shareholders, faced legal battles with various organizations it sponsored, and racked up millions in debt.
The company’s association with the sports world was not limited to McLaren. Huski’s branding was also displayed on Sauber’s F1 car in 2019, a team owned by Finnish billionaire Finn Rausing. Rausing has strong ties to Marcus Ericsson, who raced under Huski’s red-and-white colors for four years (2020-2023) at Chip Ganassi Racing’s IndyCar team. Huski also sponsored several football teams in Sweden and internationally, some of which, like McLaren and Stockholm’s major club Hammarby, pursued legal action to recover unpaid fees.
Choki AB’s latest annual report disclosed a net loss of 79 million Swedish krona (approximately £6m) for 2023 alone. The company admitted to winding down operations and facing numerous disputes with sponsors and sponsorship agreements. Furthermore, Choki was embroiled in an ongoing legal dispute with its partner in the United States, ex-NASCAR driver and one-time IndyCar starter Stanton Barrett. Barrett, a minority owner in Huski Americas and Choki, successfully sued to reverse a forced dilution of his stake.
McLaren’s relentless pursuit of the unpaid amount came to a halt with Choki’s bankruptcy. Even though the payment was due by December 1, 2021, over €1.1 million remained unpaid as of May 2023. McLaren initiated legal action against Choki AB and its guarantor, real estate company Kvalitena AB, who repeatedly ignored communications.
Despite the risk of a default judgement in McLaren’s favor, Kvalitena did not meet the deadline to submit either a confirmation of service or a statement of defense. This led the High Court of Justice in the United Kingdom to rule in May 2024 that McLaren was still owed two amounts: €1,250,910.30, and £81,884.66. McLaren’s demand for payment, as per the judgement, went unanswered by Choki and Kvalitena. Lawyers representing McLaren in Sweden requested the Stockholm district court to enforce the UK decision in Sweden and hold Kvalitena accountable for additional costs incurred. However, neither Choki nor Kvalitena responded, leaving the costs unsettled.
Despite the financial setback, McLaren enters the 2025 season this weekend at the Australian Grand Prix on a high, having won the constructors’ championship last year and shown promise in pre-season testing. The saga with Huski and its parent company, however, serves as a stark reminder of the volatility and risks inherent in sports sponsorships.
