Williams is sold and Vettel opts for Racing Point
Sir Frank Williams has been a fixture in Formula 1 since 1969, and the team that bears his name remains the second most successful of all time in terms of constructors’ championships won. The name will remain but the Williams family has taken its leave, stepping away from management duties after selling the team to Dorilton Capital, an investment fund acting on behalf of a high-net-worth European family.
While Sir Frank had remained nominally in charge of the team, and held a majority shareholding of 52.25%, his daughter Claire superintended day-to-day operations in her role as deputy team principal. Mike O’driscoll, who has been Group CEO since 2013 and held a minority shareholding, announced that he would be retiring after the transition period. Managing director Simon Roberts, recently recruited from Mclaren, will serve as acting team principal until a replacement can be found; the F1 rumour mill has already connected Andy Cowell, who is leaving Mercedes Benz High Performance Powertrains, with the role.
“Dorilton, I’d like to make it clear, wanted me to stay,” said Claire Williams during the Italian Grand Prix weekend. “This was my decision. I felt it was the right choice for me to step away.
“There will be a period of transition. This is obviously going to be my last race weekend, but I am going to be working a few days per week over the course of the next few weeks in order to hand over, in order to talk to Dorilton about the team, the inner workings of the team, and the expertise they need to come in.
“They’re in the business already, they’re doing their due diligence, they’re reviewing the capabilities, and they’re looking at what they can do in order to invest into the business. I will be helping them with that to advise that over the coming weeks.”
The sale brings to an end a period of financial turmoil. Diminishing competitive returns on track over the past five seasons has been accompanied by a fall in commercial revenues and declining share of the prize monies. The writing has been on the wall since 2017, when Williams undertook a round of refinancing, sold a neighbouring plot of land for £9m, and accepted an estimated $35m to run Lance Stroll in a race seat. Having finished fifth in the constructors’ standings that season it slumped to 10th as completely new car concepts for 2018 and 2019 failed to deliver the goods. In recent months it sold its Advanced Engineering division but reported a £13m loss for the financial year – and was then forced into a fresh round of refinancing when a key sponsor defaulted on payments.
The Dorilton buy-out valued the assets of the company at £135m. After costs, and the discharge of a loan made by Canadian businessman Michael Latifi, the departing shareholders were left with £99m.
So who are the people behind Dorilton Capital? Chairman Matthew Savage and CEO Darren Fultz, who co-founded the investment fund in 2009, both had long careers at Rothschild & Co, one of the world’s largest financial advisory companies. They are now also two of the three individuals on Williams F1’s board of directors, the third man being James Matthews, co-founder and CEO of the Eden Rock Group, a financial advisory and venture capital company. Eden Rock is also the name of a luxury resort on the Caribbean island of Saint Barthélemy, acquired by Matthews’ father David in 1995.
David Matthews made his fortune in second-hand car sales and property development, and dabbled in motor racing. He competed in a Broadspeed Capri in the British Saloon Car Championship until a severe crash in the support race for the 1973 British GP dissuaded him from further involvement. James was a promising single-seater racer – he won the Formula Renault Eurocup in 1994 – before turning his attention to the City. He enjoys a moderately prominent public profile in the tabloids by dint of his marriage to Pippa Middleton, sister of the Duchess of Cambridge.
“The new Board recognises and appreciates the importance of retaining Williams’ heritage and culture and will continue to work with senior management to leverage its capabilities to return it to racing competitively,” said a team statement.
Completion of the sale followed swiftly in the wheeltracks of the successful signing of the Concorde Agreement by Formula 1 and all 10 teams. The terms of the new commercial contract are understood to have been vital to the sale: as well as a more equitable share of revenues among the teams, it also demands that new entrants pay $200m (£155m) towards a prize-money “dilution fund” (see separate story) which is then shared between the existing teams.
In effect, therefore, for less than it would cost to lodge an entry, let alone assemble a factory, staff and equipment, Dorilton has acquired a turn-key race operation which is already entitled to a share of the commercial revenues. A smart move – if it can turn the team’s fortunes around.
“THE WRITING HAS BEEN ON THE WALL SINCE 2017, WHEN IT UNDERTOOK A FRESH ROUND OF REFINANCING”