McLaren Group is considering selling a stake in McLaren Racing, its division responsible for the McLaren Formula One team and recent Indycar efforts.

Citing sources familiar with the matter, Sky News reported Thursday that McLaren raised the possibility of selling between 20 and 30% of McLaren Racing during recent talks with advisers and lenders.

The news follows McLaren's announcement in May that it will shed 25% of its workforce as part of a restructuring to deal with the Covid-19 coronavirus pandemic and a new budget cap to be introduced in F1. The budget cap will start at $145 million in 2021 and drop to $135M in ensuing years.

McLaren, like all F1 competitors, has lost revenue due to the delayed start of the 2020 season (the first race will now be held in July). Another iconic team, Williams, in May said it was considering selling part or all of its business.

McLaren has also seen sales slow at its McLaren Automotive road car division. Its 2019 deliveries came in at 4,765 vehicles versus the prior year's record tally of 4,863 vehicles, and 2020 will likely come in substantially lower due to recent coronavirus-related shutdowns.

McLaren, which is majority owned by the Bahrain government, had requested an emergency loan of 150 million British pounds (approximately $185 million) from the British government but was knocked back, Sky News reported in May. It also looked at raising funds by offering its headquarters and some of its classic race cars as collateral. This was after shareholders made an equity injection of 300 million British pounds in March.