Williams Formula One Team Suffers Brutal RBS Sponsorship Loss
The Williams Team is one of the stalwarts of Formula One, but has been having money problems the last few years. The loss of RBS as a primary sponsor is simply a brutal one.
Sir Frank Williams formed the Williams Team in 1969. It has had a successful run with no less than 9 championships, a number the Toyota Team would give its right Prius to be anywhere near. The particularly amazing thing about the performance of Williams is it is a private team not backed by a manufacturer like BMW, Ferrari, Renault and so on.
The last five years have seen a really rough run for Williams. The team has not lost its competence or competitiveness. It simply no longer has the ability to keep up with the big factory teams that spend upwards of $300 to $500 million dollars a season. Some are even believed to spend more than these staggering amounts.
The recent cost cutting measures introduced to Formula One for the 2009 season were seen as a ray of hope for the Williams Team. The belief is if the team can get on equal footing from a budgetary point of view, then it can compete with the manufacturers’ teams. Just when things were looking good, a major wrench has been thrown into the process.
The Royal Bank of Scotland, better known as RBS, is a big sponsor of sports. In relation to Williams, the bank is one of two primary sponsors on the car and pays between 10 and 15 million pounds to have its name on the body and rear wing of the two Williams cars. As you might have noticed, banks are having a bad time of it. RBS just announced losses closing in on 30 billion dollars. With such a dire financial situation, it can no longer afford to go racing.
The loss of RBS is a brutal blow for Williams. Losing a primary sponsor is bad enough given the damage it does to the budget, but the timing of the loss is also a major problem. The current economic situation is such that it is hard to imagine Williams finding a replacement sponsor before the 2010 season. Large corporate entities are losing money hand over fist. Those few that are not are so worried about the economy that they are unlikely to be splashing their name on the Williams or any other car soon. All and all, the situation doesn’t look to good for Williams.
There is some light at the end of the tunnel. First, RBS has agreed to continue sponsoring Williams through the 2009 season which starts in a few weeks. This means Williams is not cut off at the knees before the first race, but it also means there is going to be major pressure to win and win big. Second, Sir Frank Williams has indicated that the team is financially secure for the 2009 and 2010 season, which means there is a buffer of money for an emergency such as this. Both of these developments are good news.
I have never been a big Williams fan. That being said, I think Sir Frank Williams is one of the shining lights of Formula One in his honesty and willingness to speak his mind. The loss of Williams from Formula One could certainly be overcome, but that doesn’t mean it would not be a major tragedy. Here’s hoping that sponsorship is found and Nico Rosberg is given a car that matches his immense talent.
Lemmy