Williams bust, saved by Bernie

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WhiteBlue
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Williams bust, saved by Bernie

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The Story how Williams survived 2008 here
Ecclestone brokers deal to keep team racing
Published: January 23 2009 23:20 | Last updated: January 23 2009 23:20
Bernie Ecclestone, Formula One commercial director, has revealed that he advanced the struggling Williams team £14.5m after it committed to stay in the sport, write Christian Sylt and Caroline Reid.

Williams has made a loss of £50m over the past two years but the boost from Mr Ecclestone has helped the team get its budget in place until the end of 2010.

A total of £130m has been set aside as an incentive for F1’s nine teams to sign the Concorde Agreement, the contract that binds them to race in F1 but which expired at the end of 2007.

The teams now race in F1 under a Memorandum of Understanding (MOU) agreed in 2006 with CVC, the private equity group that has majority control of F1, but this is not legally binding.

The MOU increased the teams’ annual prize money from 25 per cent to 50 per cent of the sport’s underlying profits and these payments began last year. But the teams have not signed a new contract, prompting Mr Ecclestone to say: “We have no contract and no invoice so why are we paying them?”

CVC offered the teams a signing bonus, comprising the difference between the old and the increased prize money backdated from 2004-07 and estimated at £130m, subject to the signing of a new Concorde Agreement, which CVC needs if it wants to withdraw from the business.

Williams, however, has already received its share of the money from 2006 and 2007. “It’s a prepayment,” says Mr Ecclestone. “They are entitled to some back-payments only due for payment when they sign the Concorde . . . we said to them we will pay you now.”

The back-dated payments represent about 20 per cent of Williams’ revenues and will have helped the team get its budget in place in spite of losing sponsors.

Copyright The Financial Times Limited 2009
Bloody Hell!!! I did not think it was that bad. But Wiliams are a household name to preserve in F1. Glad they made it by the skin of their teeth. The 2009 car must perform or there will be hell to pay.
Last edited by WhiteBlue on 24 Jan 2009, 08:29, edited 1 time in total.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

xpensive
xpensive
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Re: Williams bust, saved by Bernie

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Most interesting, WB, this is actually what I have been afraid of since the bread-and-butter launch with little of serious sponsorship. Not visible such anyway.
In this context, I am even more doubtful that Williams would have spent Bernie's money on the development of some ground-breaking KERS technology.
"I spent most of my money on wine and women...I wasted the rest"

andartop
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Re: Williams bust, saved by Bernie

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So, no conspiracy there since the F-word is not involved, right? (Please do not answer by "Yes, but Ferrari blah blah", this thread is about Williams!)
The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents. H.P.Lovecraft

xpensive
xpensive
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Re: Williams bust, saved by Bernie

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Don't worry andartop, there's a conspiracy indeed, when Bernie simply had no choice in order to deliver 20 cars for 2009. Besides, Williams sided with Bernie against the manufacturers in 2006.
"I spent most of my money on wine and women...I wasted the rest"

alex1015
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Re: Williams bust, saved by Bernie

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I've never been a fans of theirs but I'd hate to see Williams go. They are the last of the privateers and an F1 legend. But if it could happen to Lotus...

They MUST have a good 2009

waynes
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Re: Williams bust, saved by Bernie

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blimey, thats surprising news

would miss Williams greatly if they went

edit: what i find more surprising is the fact this news actually made print, not like F1 to publish its troubles

andartop
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That was my point, that conspiracies don't revolve only around the BIG BAD RED TEAM, but have always been a part of F1, and the world in general.. so we can either get on with our lives or end up like Fox Mulder! Anyway, I d'hate to see Williams go as well, as most people around here.
The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents. H.P.Lovecraft

donskar
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andartop wrote:That was my point, that conspiracies don't revolve only around the BIG BAD RED TEAM, but have always been a part of F1, and the world in general.. so we can either get on with our lives or end up like Fox Mulder! Anyway, I d'hate to see Williams go as well, as most people around here.
Yes, Williams would be a big loss. IMHO, Williams WILL be a big loss. They will not survive more than another couple years (IMHO), because they are, or try to be, pure racers. They are an anachronism, dinosaurs. F1 is not about racing any more. It's a marketing tool / spectacle / money machine. I still love it, but my loved one is getting fat and wrinkled.
Enzo Ferrari was a great man. But he was not a good man. -- Phil Hill

xpensive
xpensive
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Re: Williams bust, saved by Bernie

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I'm with you all the way donskar, although I think Williams should be happy to live through this year as it seems most sponsors are gone. On a pure technical note however, I am so intrigued by that fly-wheel thing, electrical or not.
Now I am afraid we will never really know.
"I spent most of my money on wine and women...I wasted the rest"

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ISLAMATRON
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Re: Williams bust, saved by Bernie

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this really isnt as big a story as it seems... Bernie didnt really lend them money, he just gave them their WCC money a little ahead of time, we've known Williams has been in the red for the last couple years... they were fools not to let BMW buy in, now they are paying the price.

Conceptual
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Re: Williams bust, saved by Bernie

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ISLAMATRON wrote:this really isnt as big a story as it seems... Bernie didnt really lend them money, he just gave them their WCC money a little ahead of time, we've known Williams has been in the red for the last couple years... they were fools not to let BMW buy in, now they are paying the price.
I wonder if forwarding the prize money to Honda would give them enough to be on the grid in 2009... Even as a Super Aguri, since they would still be owed backpay as well!

Honda backpay + Super Aguri backpay = Super Aguri Honda on the grid in 2009.

I'm sure with the engine rule, that 24 Honda powerplants could be scraped together... I mean, how many did SA have left when Nick Fried them?

Belatti
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Re: Williams bust, saved by Bernie

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donskar wrote:
andartop wrote:That was my point, that conspiracies don't revolve only around the BIG BAD RED TEAM, but have always been a part of F1, and the world in general.. so we can either get on with our lives or end up like Fox Mulder! Anyway, I d'hate to see Williams go as well, as most people around here.
Yes, Williams would be a big loss. IMHO, Williams WILL be a big loss. They will not survive more than another couple years (IMHO), because they are, or try to be, pure racers. They are an anachronism, dinosaurs. F1 is not about racing any more. It's a marketing tool / spectacle / money machine. I still love it, but my loved one is getting fat and wrinkled.
Tyrrell, Lotus, Brabham, Ligier, great teams, great names, but apparently nothing is essential.
"You need great passion, because everything you do with great pleasure, you do well." -Juan Manuel Fangio

"I have no idols. I admire work, dedication and competence." -Ayrton Senna

xpensive
xpensive
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Re: Williams bust, saved by Bernie

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Don't forget Tecno, AGS, Life Racing and Andrea Moda...they were most definetly not essential to F1 racing per se, but just like in Hollywood, they were there to make the stars look good.
"I spent most of my money on wine and women...I wasted the rest"

donskar
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Re: Williams bust, saved by Bernie

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xpensive wrote:Don't forget Tecno, AGS, Life Racing and Andrea Moda...they were most definetly not essential to F1 racing per se, but just like in Hollywood, they were there to make the stars look good.
And BRM, Cooper, BRP . . . SIGH

Is it just that my cynicism is out of control? Or does it sound like Williams has sold its vote on the future Concord agreement?
Enzo Ferrari was a great man. But he was not a good man. -- Phil Hill

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vyselegend
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Re: Williams bust, saved by Bernie

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I kind of agree with ISLAMATRON, I think the Honda affair has somewhat traumatized us. Like a few said already, the end of F1 is anounced every two years... If we rely on internet forums, Toyota should be memory since it's third season, and Renault has so little commitment in F1 that it is gone for sure, every year :roll: .

Williams is living in the deep red for a few years, this is no secret. Certainly the hesitating manoevers from sponsors are stressfull, and to know the team is now living on it's future litteraly, is quite ironic, or even poetic I'd say, because this future precisely depends of what the team can realise with that budget.

However,as the saying goes, "don't sell the bear before killing it". :wink: That team, on par with it's founder, has a very rough and hard skin. I prefer being totalled by the announcement of their withdrawal after the season, than living a whole year shivering and seeing signs of apocalypse everywhere...
I HATE sensational journalism such as Auto Motor und Sport Build and Co, to be honnest.

For now, I strongly believe in Williams, especially Rosberg, although this is the third consecutive season I bet on them with no real success, even while the potential is here, definitly. This time it's different, and the gamble over the Flywheel KERS system should be a good one in terms of exploitation costs, if I understood it correctly, while no one can tell for sure that it won't be as performant as electric KERS, especially for the begining of the season.

Obviously we won't be able to tell before the fourth or fifth race of 2009, in a few month.