Williams considering sale of famous world title-winning Formula 1 team

Williams has announced it is considering selling the Formula 1 team after a dip in the company’s financial results.

The Williams Grand Prix Holdings group reported an adjusted loss of £13million for the year ending 2019, against profits of £12.9m in 2018, and new investment will now be sought.

Offering a minority or majority stake will be considered, but so too will an outright buy-out.

Williams has also terminated its title sponsorship deal with Rokit.

“The WGPH board believes that the strategic review and formal sale process is the right and prudent thing to do in order to take time to consider a full range of options and put the Formula 1 team in the best possible position for the future,” said a statement.

The Grove-based team says it is yet to receive any formal approaches but has confirmed “preliminary discussions” with possible investors. It also stated that despite the change of approach the company has both the funds and the intent to reclaim its place on the grid as and when racing returns.

Williams’ F1 revenue declined by more than £35m to £95.4m and chief executive Mike O’Driscoll admitted a downturn in results had been a contributing factor to the current difficulties.

“The financial results for 2019 reflect the recent decline in competitiveness of the F1 operation and the consequent reduction in commercial rights income” he said.

“There has been an enormous gap in earnings and expenditure between the three largest teams and the rest of the grid for a number of years, but we are confident that Liberty Media’s long-term vision and plans, including a first-ever cost-cap for the sport, will deliver a more level playing field for 2021 and beyond, on which all teams can compete more fairly.”

meanwhile, Mercedes’ parent company Daimler has rejected reports that the German brand could be about to pull out of Formula One and that Toto Wolff was planning to resign as managing partner.

At a time when six-time world champion Lewis Hamilton has been discussing a new contract with the Silver Arrows, reports in Germany suggested Wolff might step away from his current role in order to partner with Lawrence Stroll to oversee a buy-out of Mercedes.

However, a statement from Daimler reaffirmed its commitment to Formula One.

“Speculation regarding a potential withdrawal from Formula 1 continues to be unfounded and irresponsible,” the statement said.

“The sport has taken the right measures to address the consequences of the Covid-19 pandemic and its future financial sustainability, and we welcome these steps.

“It is our clear intention to continue competing in Formula 1 as a Mercedes-Benz works team in the years to come, and to do so with our managing partner Toto Wolff.”

This week, governing body the FIA approved plans to introduce strict budget caps which will see the amount each team can spend annually reduced in each of the next three years.

The move is expected to hurt the big teams the most but it was approved unanimously, deemed necessary both due to the pandemic and the need to increase competition.

Mercedes have won the drivers’ and constructors’ championships in each of the past six seasons, having been the class of the field during the turbo-hybrid era.

In 2019, the team won 15 of the 21 Grands Prix as Lewis Hamilton and Valtteri Bottas finished first and second in the standings.

Wolff, who joined the team in 2013 from Williams, has masterminded that run of success but there have been suggestions the Austrian - who owns 30 per cent of the team - could be seeking a change.

Hamilton, who is out of contract with the team this winter, has previously indicated his next move could depend on that of Wolff.

In addition, Renault has reaffirmed its commitment to Formula One despite announcing that almost 15,000 jobs will go worldwide as part of a two million euro cost-saving package over the next three years.

The measures were announced during an online press conference on Friday morning as the Renault Group warned it needed to respond to a major crisis facing the automotive industry amid the coronavirus pandemic.

However, interim chief executive Clotilde Delbos said the measures will not include a withdrawal from Formula One.

“We have said publicly and we can confirm that we remain committed to Formula One,” Delbos said.

“The fact that the FIA has capped expenses is great news for us.”

Earlier this week, the governing body approved plans to introduce significant budget caps into the sport from next year, starting at 145million US dollars (£117million) from 2021, then further reduced to 140m US dollars in 2022 and 135million US dollars across 2023-25, based on a season of 21 races.

In addition to its works team, Renault currently supplies engines to McLaren, but the British team is due to switch to Mercedes next season.

Renault returned to F1 in 2016 but is yet to replicate the success it enjoyed prior to leaving in 2010, with the last of its drivers’ titles won by Fernando Alonso in 2006.

The works team is searching for a new driver to partner Esteban Ocon following confirmation that Daniel Ricciardo will join McLaren next season.

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