Just one year after entering the WorldTour and winning the Tour de France, automaker McLaren appears to be ending its activities and sponsorship of Bahrain McLaren at the end of this year.

The British firm has suffered huge financial losses in recent months due to financial pressures stemming from the coronavirus outbreak, with 1,200 UK-based staff laid off earlier this spring. The Bahrain McLaren team's riders and staff received up to 70% wage deferrals for three months, agreed earlier this year, to help the team stave off financial difficulties; according to Cyclingnews, these deferred wages will not be paid in full, but the team's owner Shaikh Nasser bin Hamad Al Khalifa has guaranteed that he will continue to run the team until 2021, so the team will finish the year with 75% of its annual salary.

Meanwhile, the behind-the-scenes staff is scrambling to find new sponsors in the event that the car company terminates its commitment to cycling.

"The team is looking for something else, but nothing concrete has been found. 'Prince is still backing us, but he is the only one keeping the team alive at the moment. McLaren is focused on keeping the F1 project alive.

"The level of deferral depends on who has less money, but the plan is to equalize the wages so that by the end of the year they are about 75% of what they should be. There was a conference call last week and no one knew what was going to happen. Some people thought that because of everything that was happening at McLaren, the wage deferral would remain at 75 percent." [The Bahraini royal family owns a majority stake in McLaren, but the financial pressure on both sides has been immense in recent months; according to Forbes, McLaren's profits will fall from $217.7 million in 2019 to $136.2 million in 2020, while the brand's pre-tax loss jumped 600 percent to $165.6 million. Also at the end of June, it was reported that McLaren had received a £150 million loan from the Bank of Bahrain, but even that may not be enough to keep McLaren's cycling team afloat.

Bahrain McLaren team principal Rod Ellingworth would not elaborate or confirm whether McLaren would still be part of the team next year. He told Cycling News that the team is actively seeking sponsorship, but that this is normal as the team is always looking for additional investment.

"We are always looking and having good discussions with people.

"McLaren still owns half of the team along with Bahrain and will be racing motorcycles for a few weeks wearing the McLaren jersey. We know that these are really tough times for a lot of companies. McLaren has been going through some tough times recently, but we are carrying on as we are"

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A McLaren Group spokesperson told Cycling News, "We are working closely with Team Bahrain McLaren to prepare for the resumption of cycling. As with all of our activities, we are continually working to assess our brand fit and reach to a global audience."

The team is also working with the McLaren Group to ensure that the team's brand is not only a success, but a success as well.

The cycling team increased its budget for 2020 and signed a number of riders, including Mark Cavendish, Wout Poels, and Tour de France podium contender Mikkel Landa. Teams also approached Chris Froome, but the four-time Tour de France winner ultimately signed with the Israeli startup nation.The financial impact of COVID-19 led some teams to cut salaries with their riders, including Mitchelton Scott and Lot Soudal among the teams that agreed to take measures to stabilize their operations.