Williams ready to sell the teamMay 30, 2020
Williams Racing announced the termination of the contract with the British company ROKiT, which until recently was the title partner of this Formula 1 team. Moreover, only last July it was announced the extension of the sponsorship agreement from three to five years. The reasons for this decision are not explained.
Moreover, as can be seen from the financial statements of Williams Grand Prix Holdings PLC for the year 2019 and official comments on it, published on Friday, the team can be put up for sale.
Williams’ extremely weak results over the course of two seasons led to a decrease in prize payments from Formula 1 – they were reduced by £ 35 million. Total revenue last year fell by 13 million pounds.
Nevertheless, Williams hopes that the company’s restructuring measures, the sale of a controlling stake in the technology division of Williams Advanced Engineering, a long-term contract with Mercedes for the supply of engines and loan funds will provide the team with “resources for implementing a new strategic plan”.
The possible sale of the entire company is one of the scenarios that is being considered by the Williams board of directors. But not the only one, since attempts will also be made to attract new investors and shareholders.
“Although no decisions have been made so far so that negotiations with interested parties are possible, the company announces the start of a formal sale process,” the Williams management statement said on May 29. The team did not receive concrete proposals about this, but preliminary negotiations with potential investors are already underway.
The statement also emphasizes that Williams has a budget for this season: “Although the company has encountered a number of difficulties, Williams currently has the necessary funds and is ready to return to racing as soon as the 2020 calendar allows.”
In the previous two seasons, Williams took the last, 10th place in the Cup of designers.
“The financial results of 2019 reflect the recent decline in the competitiveness of the Formula 1 team and the subsequent decline in revenue from participating in the championship,” commented Mike O’ Driscoll, Williams Executive Director – The previous two seasons were very difficult. In the past nine months, we have taken significant steps to restructure the team and strengthened its technical leadership.
Of course, the 2020 season was interrupted due to a pandemic, and this will affect our income. The team also announces a breakup with the title partner, ROKiT, and its main sponsor, ROK Drinks.
Like many other enterprises, we have taken large-scale measures to mitigate the consequences of what is happening, including extending the period of forced vacations for most employees.
As this terrible global crisis is gradually passing, everyone at Williams Racing is ready for the start of the new season. ”
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