Williams F1 post massive half-year loss
Williams F1 made a small profit for the first half year of 2018, some £200,000, but have made a massive loss for the first half of 2019. Williams are a listed company (they are listed on the Frankfurt stock exchange as Williams Grand Prix Holdings PLC). As a public company they have to produce half yearly accounts for share holders and this year they have shown a loss of £16.8 million January-June 2019. Their sister company Williams Advanced Engineering, part of the Williams group did offset some of that loss by showing a £9m profit.
The vast majority of their losses came from the big drop in prize money from Formula 1 but they also lost a lot of money because Lance Stroll leaving meant that Lawrence Stroll took his millions to Racing point. they also lost sponsorship money from Lance Stroll and Sergey Sirotkin, their current drivers didn't bring in anywhere near the sponsorship they lost. They also lost their title sponsor in Martini who were paying millions more than their current sponsor ROKiT.
They are going to finish last in this years championship which is very likely going to put even more financial pressure on the team, can they survive this continued drop in money. Well Frank still owns 51.3% with Brad Hollinger holding 11.7%, Patrick Head has 9.3% and 3.6% is held by the employee trust fund, so just 24.1% is held on the public market place. Between them Frank, Brad and Patrick could see around another 24% and still keep control, but having read about Frank Williams in a number of book I'm sure he will want to try and keep full control.
While Williams Advanced Engineering keeps managing to keep the team afloat, they have a good chance of staying in F1, but a large drop in their income could see a takeover. Formula 1 pays prize money in year in arrears, so William will need to improve hugely in 2020 to any increase in prize money for 2021, as this year and next they will get 10th place money (they finished last in 2018 and look likely to do the same in 2019).
Haas and Rich Energy part company
So it looks like the inevitable has happen and Haas has lost their title sponsor Rich Energy effective immediately. The now-former title sponsor of Haas had been the source of discussion at the British Grand Prix in July when former Rich Energy CEO William Storey announced that he had terminated the partnership. As both Haas and the shareholders of Rich Energy sought to recover the partnership, Storey was removed as CEO under suspicion that he personally went rogue by announcing the split on social media. The agreement was eventually rekindled.
Now, however, a split seems more permanent. Haas team boss Guenther Steiner had said recently that a decision on the partnership going forward would be made ahead of the Singapore Grand Prix, the next race on the current calendar. “Haas F1 Team and Rich Energy have amicably agreed to end their partnership together in the FIA Formula One World Championship with immediate effect. While enjoying substantial brand recognition and significant exposure through its title partnership of Haas F1 Team in 2019, a corporate restructuring process at Rich Energy will see the need for a revised global strategy. Subsequently, Haas F1 Team and Rich Energy concluded a termination of the existing partnership was the best way forward for both parties. Haas F1 Team would like to express its thanks and best wishes to the stakeholders at Rich Energy”.
The team will continue to run in their black and gold livery for the remainder of the season, but it will not feature the Rich Energy branding.