These are troubled times for Formula 1. Honda, rich as it is, has bailed out of F1 and is still looking for a buyer. Other teams are struggling to make a budget that adds up, despite the backing of billionaires and car manufacturers. But what of the real lone independent of F1 – Williams? How is it managing to stay afloat, despite losing an engine deal with BMW in 2005 worth £75 million a year, and missing out on sponsorship worth £33 million in the last year alone?
Williams F1- Bernie Ecclestone keeps them in the game.
Well, it seems that Bernie Ecclestone is the saviour. It is often said that Bernie is only interested in the big players – the likes of Ferrari. But in this case Bernie has ensured that Williams is in a fit state to run until 2010 by advancing them money ‘owed’.
So what is this money ‘owed’? F1 teams are currently running under a MOU (memorandum of understanding) as the last official contract expired in 2007.
The MOU allowed the F1 circus to continue by upping the money paid to teams from 25% to 50% of the profits made by F1. As an incentive to get teams to sign a new agreement, Bernie has offered to pay out an increased share of the profits backdated to 2004. But none of the teams seem to have signed up to this yet.
However, Williams has given an undertaking to stay in F1 until 2012, and as a result Bernie has subbed them their increased prize money from 2006/07, enabling the team to fund their operation until 2010.
Smart cookie, that Bernie.
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