Williams may sell F1 team after poor on-track performance hits earnings
Williams is considering selling the Formula 1 team after a dip in financial results.
The Williams Grand Prix Holdings group reported an adjusted loss of £13 million for 2019, against profits of £12.9m in 2018, and investment is being sought. Offering a minority or majority stake will be considered but so, too, will an outright buy-out.
“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.
“As part of this new strategic direction, the WGPH board is undertaking a review of all the various strategic options available to the company.
“Options being considered include, but are not limited to, raising new capital for the business, a divestment of a minority stake in WGPH, or a divestment of a majority stake in WGPH including a potential sale of the whole company.”
The Grove-based team, founded by Sir Frank Williams, pictured, says it is yet to receive any offers but plans to take its place on the grid as and when racing returns.
The statement continued: “The company is not in receipt of any approaches at the time of this announcement and confirms that it is in preliminary discussions with a small number of parties. There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.
“While the company has faced a number of challenges, Williams currently remains funded and ready to resume racing when the calendar allows in 2020.”
Williams’ F1 revenue declined by more than £35m to £95.4m and chief executive Mike O’driscoll said: “The financial results for 2019 reflect the recent decline in competitiveness of the F1 operation and the consequent reduction in commercial rights income.
“After four years of very solid performance in the FIA F1 Constructors’ Championship, we endured a couple of very difficult seasons.
“There has been an enormous gap in earnings and expenditurebetweenthethree 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 firstever cost-cap for the sport, will deliver a more level playing field for 2021 and beyond.”
The Camanachd Association has cancelled all of shinty’s 2020 cup competitions and will replace the leagues with local competitions – if it is safe to do so.
Following a meeting of the board, which considered the latest coronavirus guidance from the Scottish Goverment and consulted its international team doctor John Wallace, the announcement was made yesterday.
The board believes that the sport will only be able to resume when Phase 4 of lifting lockdown is reached and social distancing is eased.
Local shinty events may take place later in the year and the Camanachd Association stated: “The focus will be on providing competitive opportunities and reducing travel for all when it is safe to do so.”
Camanachd Association president Keith Loades said: “This decision was taken to provide clarity for clubs but also to highlight our commitment to the protection and wellbeing of our community.
“Wecanonlydelivercompetition when it is safe to do so and in line with what our clubs and officials are comfortable engaging with at that time.”
Competitions director and vice-president Steven Mackenzie added: “A return to shinty this year clearly requires smooth progress through a number of the Scottish Government phases and should that occur we then have to consider the time available and reducing travel to and from different communities so soon after a global pandemic.
“We are hopeful that progress will continue to be made to overcome the virus and when it is safe to do so we hope to arrange local league competitions.”
The association’s chief executive Derek Keir praised sponsors for sticking by the sport and promised to keep all member clubs updated.
He said: “I would like to extend a special thanks to [league sponsor] Mowi for their incredible continued support during this difficult period and to all of our competition sponsors for their understanding.”