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F1 2020

Rokit leaving Williams was the final nail in the coffin
It was the departure of Williams’ title sponsor this year that prompted the sale of the team. That is the admission of Claire Williams, the daughter of founder Sir Frank Williams, as they both depart Formula 1 following the sale to Dorilton Capital.

“I had my chance and I’ve run out of energy,” Claire Williams told reporters, “I wish for the new owners someone who still has the strength to put everything into it. That’s no longer me.” Williams’ title sponsor, the British telcom Rokit, pulled out of the deal in May amid the corona crisis. Claire Williams said that was the final nail in the coffin.

“We had exhausted every possible source,” she said. “I thought things would really get better this year. We managed to get a new title sponsor who promised us the world. When that fell apart and the coronavirus struck, that was the end of the story. There was no way to recover from that,” Williams added. “If those two things hadn’t happened, we would have made it.” Williams, 44, said she is now looking forward to life outside of Formula 1 with her young family. “This sport demands a lot from you,” she admitted. “I want to rebuild myself after this difficult time and find out who I am outside Formula 1. “I have always been Frank Williams’ daughter. Now I just want to become my own person, see if I like that.”
 
Who really owns Williams F1 (Will Nicoll of Forbes looks into it)
On Saturday, representatives of Williams Racing’s new owner, Dorilton Capital LLC, attended the Tuscan Grand Prix in Mugello, Italy. The deputy team principal of the Williams Formula One racing team, Claire Williams, had just departed the team—making this the first time in 43 years that the Formula 1 team founded by Frank Williams was outside family management. Yet despite the presence in Mugello of Dorilton chairman Matthew Savage, the group’s general counsel Stephanie Dattilo and the CEO of Eden Rock, James Matthews—himself a former racing driver—we still remain unclear on who Williams’ new owner really is.

In my last article for Forbes, I flagged new leads in the search for Dorilton’s new owner. After discovering a maze of offshore companies in writing that article, an interesting trend emerged. Dorilton’s acquisition of the British team has been one of the most silent M&A deals in many years. Who owns Williams, and why is anonymous ownership of Formula 1’s most storied team so sacrosanct to the parties concerned?

As I reported for Forbes on September 6, several high-net-worth individuals had been linked to the acquisition by the Italian publication La Gazzetta dello Sport, including Williams driver Nicholas Latifi’s father, Michael, a Canadian-Iranian businessman who already owns 10% of the equity in McLaren Group. Russian businessman Dmitry Mazepin and Israeli businessman Chanoch Nissany were also referenced by La Gazzetta, with both men’s sons, Nikita and Roy, already racing in Formula 2. In my September 6 article, I highlighted a potential connection in businessman Calvin F. Lo, who had not been previously been linked to the $180 million acquisition. Upon receiving a Glomar response from Lo’s attorney on whether Lo was behind Dorilton, further questions arose. Because of the disappearance of news articles on Lo’s business activities, and delays caused by allowing a response from Lo’s attorney, various publicly available documents that demonstrated possible links to Dorilton could not be reported. Lo has still not provided any public response to the article. His attorney will neither confirm nor deny the businessman’s involvement in Formula 1’s most mysterious M&A.

During my correspondence with Lo’s representative, Edward Watts, I noticed that Watts responded (on one occasion) via an email address linked to an entity different from Lo’s company, R.E. Lee International. The entity—known as R.E. Lee Octagon—was traceable to the Cayman Islands. Documents provided to me by a third party on the condition of anonymity implied R.E. Lee Octagon’s ownership, or significant control, over several entities. While many are involved in processes necessary to automotive engineering, including research and development, the most notable is Octagon Commodities—an entity with substantial interests in the extraction of rare earths. Asked directly whether the documents were proof of Lo’s ownership of Octagon, Watts confirmed in a written response that “further to your provision of [these] materials, we can confirm that R.E. Lee Octagon is a fund which operates from Grand Cayman, with the purpose of managing Calvin Lo’s personal investments.”
 
Part 2
FIA President Jean Todt shocked many industry insiders when he announced on April 1, 2019, that the Formula One World Championship would switch entirely to all-electric engines by 2021. The industry considered this statement notable. As I previously reported, one of Lo’s close friends is the actress Michelle Yeoh, best known in the United States for her role in Crazy Rich Asians. Todt is Yeoh’s partner. The extraction of rare earth metals is not just critical to achieving the FIA’s goal, but to broader environmental plans for car manufacturing. Octagon Commodities possesses several significant contracts with China Nonferrous Mining. One, which is publicly available, is for annual capped purchase of copper—up to the value of $36.4 million. R.E. Lee Octagon also holds other commercial ties to China Non Ferrous for purchase of many rare earths used in the manufacture of electric cars.

My statements here must not be read to imply any form of impropriety between Lo and the former FIA president—this move toward sustainability in automotive engineering has been the subject of significant discussion for many years, and between many different individuals, as high carbon emissions have long been considered inappropriate by those within F1 and beyond. Tesla has devoted significant discussion already to sourcing the cobalt necessary to meet its production plans. Yet as Lo enjoys close friendships with senior figures in Formula 1, it is difficult to understand the level of secrecy he and his representatives have met my inquiries with. The deal is unusual in motorsport, where owners tend to be vocal characters with public-facing roles in the sport. Could the new Concorde Agreement, and potential exposure to liability caused by payment disputes, be the reason Formula 1 teams and companies go offshore? Is Dorilton an example of a new trend where motorsport chooses opaque jurisdictions and takes the business offshore?

As attorney Juris Gulbis told me by phone during the course of my review of corporate filings on Octagon, mapping ownership of sports assets across multiple jurisdictions has become “a way for both entities and high-net-worth individuals to navigate a regulatory landscape in Formula 1 pegged to changing considerations.” Gulbis is referring to the new legal guidelines issued by the FIA, which were intended to avoid further patent disputes between teams following the infamous case of the pink Mercedes. “Appendix 6 of the 2020 F1 Sporting Regulations clearly specifies ‘listed parts’ to avoid these concerns in future. Offshore or anonymous ownership may become a trend amongst teams who wish to mitigate risk by choosing jurisdictions with more favorable terms for challenges specific to Formula 1 team ownership,” Gulbis told me. But he added, “In Dorilton’s case, and in R.E. Lee’s, anonymity of ownership appears to be the prevailing concern. A significant number of jurisdictions, trusts and partnerships are used—not for tax efficiency or asset protection, but to hide the ultimate beneficial owner as robustly as possible.”

When I contacted Watts again for comment, he stated (jointly, and in his capacity as Lo’s attorney) that “R.E. Lee Octagon’s relationship with various mining companies is well documented, as is my client’s interests in the sports entertainment sector and the automotive industry.” Lo’s counsel’s acknowledgement of interests in rare earth extraction is—to some extent—public demesne. However, in exchanges for my last Forbes article on Dorilton, neither Lo nor R.E. International had acknowledged any stake in the sports entertainment sector. Upon investigating this angle, a relatively large number of entities emerged with links to Lo, and the myriad subsidiaries his company comprises. Because of closed company registers and the ongoing disappearance of articles referencing Lo’s business activities, what follows must not be read to prove Lo’s ownership of Dorilton, or any other entity—rather, to show personal friendship and commercial relationships with parties who have significant assets in Formula 1, and to whom Lo’s counsel will “neither confirm or deny knowledge or links in any form, whether to REL Group or to Calvin Francis Lo.”

While neither confirming nor denying knowledge is often a standard corporate response, and should not be read to imply anything besides “neither confirming nor denying,” I suggested in an exchange with Lo’s attorney that refusing knowledge could be read by some to imply involvement with Dorilton. These entities all have common ties to REL Group and form a maze of entities in seven jurisdictions—from Nevada and Wyoming to the United Kingdom, via Cayman, the BVI and Delaware. Lo’s attorney’s responded, “I reiterate the response already given.” To avoid litigation, I supplied R.E. Lee International with quotes used prior to the publication of this article.

Lo’s business activities are extremely hard to discern—with limited resources, simply confirming his company’s management of $8 billion and his ownership of the Mandarin Oriental Hotel in Taipei. The demand for privacy has slowed this article’s completion and has also necessitated a cautious approach to publication for my own legal liability—but the links to motorsport (besides rare earths and research and development of automobiles) that I flagged to Lo’s counsel for comment are as follows. Corporate filings for The Jane Goodall Institute, in which Lo has been involved for several decades, show various connections (at least in the corporate sense) that Lo enjoys to a plethora of philanthropists, sports personalities and many others who enjoy fast cars.

Octagon, for instance, is a California entity with various branches, in various U.S states—and is actively involved in motorsport. A further two Nevada entities (including a service jet broker and a commodities extraction company with concession ownership in Chile for rare earths) are also linked. While Octagon is a reasonably common name for shelf companies, built for purpose by formation agents, the UK non-resident entity Engels No. 1 Limited is registered as having previously been named Octagon Motor Sports—until its name changed rather suddenly.

This is where Lo shares a tie to the famous primate conservationist, after which the initiative was named. Notably, the auditor responsible for signing off on past accounts for the The Jane Goodall Institute (previously JGI International) is Oluwafikayomi Tomori, whose declared profession to UK authorities is “professional sportsman.” Tomori has close links to Brands Hatch Circuits Limited, a U.K. non-resident corporation that was previously named Octagon, too, while Brands Hatch itself is linked to various M&A deals in motorsport and the acquisition of non-tangible assets in Formula 1. Tomori, therefore, according to publicly available information, has dual cross-over with both Engels No. 1 (Octagon UK, until recently) and that company’s predecessors (Brands Hatch, Octagon and Silversmith). [If you managed to read this much well done]
 
Part 2
FIA President Jean Todt shocked many industry insiders when he announced on April 1, 2019, that the Formula One World Championship would switch entirely to all-electric engines by 2021. The industry considered this statement notable.

That may have been published somewhere as an April Fools joke, but what Todt has actually said is it will be decades before F1 will use fully electric power units. I would have thought the industry would consider such a statement risible, rather than notable 😉
 
More gossip from Eddie Jordan
Eddie Jordan “Toto, take the money they offered you and leave this team.” exclaims the former team boss of the Jordan Formula 1 team. A few days ago, Eddie Jordan announced the buyout of Mercedes by its current technological partner, Ineos, as well as the departure of its director, Toto Wolff, at the end of the season. The Austrian replied a few hours later that all this was pure speculation. However, Jordan repeated his assertions, this time on the Dutch TV channel Ziggo Sport.

When Robert Doornbos, a former Formula 1 driver, asked him if there was a possibility that Toto Wolff would not renew his contract with Mercedes and leave next year for Aston Martin, the Irishman replied “It’s obvious that there’s a good chance of that happening. The only thing I’m really sure of is that Ineos will buy the Mercedes team, I recognise that Toto is a phenomenally successful manager. But the time has come for him to leave. He has already won everything he can. He has also created a whole myth around Lewis Hamilton and this team. We must not forget that there are always good and bad times in life. And for Toto it is the right time to leave. If I were his advisor, I would tell him: Toto, take the money they offered you and leave this team, because it will be harder to do so later.”

Has Toto found the next Hamilton
Wolff and Mercedes Formula 1 have found the future Lewis Hamilton – His name is Andrea Kimi Antonelli, he is Italian and at only 14 years old, he has just won the European Karting Championship. Considered as the future Lewis Hamilton, the young prodigy has made a very good impression this year. The Mercedes team is keeping a very close eye on the young Andrea Kimi Antonelli, a young go-kart driver who has been part of the Mercedes junior team since the 2019 season. Moreover, he also shows a real professionalism before taking on each race weekend.

Kimi is currently part of the Kart Republic team led by Dino Chiesa, known in the industry for having been the Team Manager of the two Formula 1 World Champions, Nico Rosberg and Lewis Hamilton. His future seems to be already mapped out as he will be personally followed by Toto Wolff and Mercedes who will take care of his career in the car, from Formula 4 to Formula 1 if all goes well. Certainly worth watching the youngster below via the embedded Youtube player.

Antonelli was born in Bologna, Italy, in 2006 and caught the racing bug at the age of nine. He quickly won titles at the wheel of a kart after starting racing in 2014. In 2015, he won the championship in the Easykart Easy 60 category and took third place in the Trofeo Industrie 60 Mini category the following season. After that, he quickly moved on to the WSK Super Master Series 60 Mini in 2017, placing third again. 2018 was a great season for Antonelli, as he won the WSK Champions Cup 60 Mini category, driving for Energy Corse. He also took part in various other karting competitions, finishing second in the Italian Championship in the 60 Mini category, fifth in the WSK Final Cup and winning the 23° South Garda Winter Cup in the Mini ROK category.

He was officially announced as a member of the Mercedes-AMG Petronas Motorsport junior team in April 2019, at the age of 12, but Toto Wolff, CEO and director of the team, had been closely watching Andrea Kimi Antonelli’s progress for some time. Other highlights of 2019 include fifth in the FIA World Karting Championship (OKJ), fourth in the WSK Champions Cup (OK Junior), third in the Italian Championship (OKJ) and second in the SKUSA SuperNationals XXIII (KA100 Junior). In 2020, Andrea is tackling a number of karting categories in the OK class, including the 25° South Garda Winter Cup, the WSK Super Master Series and the WSK Champions Cup. He also competes in the FIA European and World Karting Championships, also in the OK class.

Gwen Lagrue, driver development advisor for the Mercedes-AMG Petronas F1 team, has no shortage of compliments for the young Italian. “Kimi (his nickname) is a phenomenon. He races for Kart Republic, Dino Chiesa’s team, which previously took care of Lewis Hamilton and Nico Rosberg about 20 years ago. ” explains Lagrue. “We were really impressed with him – he is very mature for his young age, very patient and extremely intelligent. He is fast, whatever the conditions, and I have never seen him make a stupid mistake. His love and passion for motorsport is obvious and he loves his races like I have never seen him do before. The way he runs, overtakes, builds his race weekend is very special and we are really looking forward to see him move to the car. ”

Do away with blue flags
Mercedes technical director James Allison has come up with a novel idea to spice up F1, although it's one that doesn't stand a hell's chance of ever getting adopted. From drastic changes to the technical regulations to the controversial concept of reverse grids, Formula 1's chiefs are sparing no effort to try and boost the show on the track. But when it comes to provocative ideas, the typically analytical and rational Allison in not one to be outdone. In a recent 'Ask Me Anything' video published on Mercedes' YouTube channel, the brilliant engineer was asked what single technical or sporting rule he would change given the opportunity to do so.

"First off, I wouldn't really muck around in the technical regulations, it's a bit of a mug's game," Allison explained. "It's valuable if you want to make the car safer or if you want to speed them up or slow them down. But it's really really difficult to make a technical change that will materially effect the way in which the cars race against one another." Allison then switched to a mischievous grin while putting his eloquent tongue in his cheek. "Sporting regulations, well that's a very different prospect," he added. "There, I would make one change. Everyone around me would probably hate me for it - I know Toto would definitely not support it - but I would say, do away completely with the blue flags! It would make the races an absolute nightmare for a fast car because as we came up to lap people they wouldn't get out of our way, we would have to fight our way through them. That would make every race interesting all way through the race. It would also mean that teams would have to forge alliances with one another, and where you would have to be very very nervous of teams that you've fallen out with which would make it politically incredibly intriguing as well. So, such a change would be disastrous for us but probably really interesting in the long term for the sport."
 
Well, here comes another GP weekend.

Привет, Сочи!

The UK times aren't too bad:

Fri 25 Sept
FP1 - 09:00
FP2 - 13:00

Sat 26 Sept
FP3 - 10:00
Qual - 13:00

Sun 27 Sept
Race - 12:10

Будем надеяться, что это еще один захватывающий уик-энд.
 
BBC is reporting that Stefano Domenicali will take over as CEO of F1 next year. Chase Carey stays as chairman. I suppose that technically SD will be Ross Brawn's boss.

Which means the heads of commercial rights and governing body (Jean Todt) will both be ex-Ferrari bosses.

On the one hand, it's nice to see an F1 insider at the F1 helm, rather than a 'bleed-it-white' corporate beast. On the other, it's an awful lot of Ferrari luggage on the F1 carousel, no?


:hmm:
 
BBC is reporting that Stefano Domenicali will take over as CEO of F1 next year. Chase Carey stays as chairman. I suppose that technically SD will be Ross Brawn's boss.

Which means the heads of commercial rights and governing body (Jean Todt) will both be ex-Ferrari bosses.

On the one hand, it's nice to see an F1 insider at the F1 helm, rather than a 'bleed-it-white' corporate beast. On the other, it's an awful lot of Ferrari luggage on the F1 carousel, no?

It’s not going to help dispel the “FIA=Ferrari Intl Assistance“ wailing on twitter, each time Ferrari gets a favourable decision from race stewards, etc.
 
Speculation over Hamilton's contract delay
Ex-F1 driver Ralf Schumacher says a possible sale of the Mercedes team and Lewis Hamilton’s multi-year demands could be holding up contract talks between the two. Heading into the 2020 campaign it seemed like a formality that Hamilton would be handed a new deal at Mercedes pretty early into the season. After all, he has won five World Championships with the team and is on his way to a sixth with the dominant Silver Arrows. Sealing the title this year would put Hamilton level with Ralf’s brother Michael Schumacher’s record of seven titles, so surely the Briton would then want at least one more year with Mercedes while the rules and chassis remain largely the same in 2021? He would be the overwhelming favourite to wrap up World Championship number eight.

But with the 2020 season past its halfway point only Hamilton’s team-mate Valtteri Bottas has signed up for 2021. And Schumacher has a theory about Hamilton’s delay. “The new contract has still not been signed,” Schumacher told Sky Germany. “That’s exciting to look at so what’s next for him and Mercedes? I can only assess the situation like this: there is a rumour that Mercedes wants to sell its team by the end of next year. This rumour persists in the paddock. Of course, this uncertainty also has consequences as it freezes such future decisions. Lewis is an important figure at Mercedes and certainly a very expensive one. He also wants a contract that is longer than just a year. The uncertainty that hovers over the team is certainly a good reason why the negotiations between him and the team are taking so long and are still not final.”

Mercedes boss Toto Wolff has strongly denied those rumours that Daimler are looking to sell a majority stake in their F1 team to Ineos, while he also maintained that the delay on Hamilton’s new deal was just because they haven’t had time to dig the old contract out. “It must be this season. You can’t start a new year without knowing what your driver line-up is,” he told Channel 4 when asked for the deadline for a new Hamilton contract. “Having said that, I’m pretty sure it’s going to continue like it is. With the intensity of this season we just didn’t have the time to spend the day properly with each other because you want to recover in those days between. We keep it pretty loose, and at a certain stage we’ve already said we’ve got to sit down and take the old contract out that we haven’t looked at since three years ago and say ‘okay, what do we want to change in that?’”

2021 street race in Jeddah Saudi Arabia

According to news reports, next year there will be another race on the calendar and it will be a street circuit. The Formula 1 circus would travel to Saudi Arabia, in the city of Jeddah. Report that Formula 1 is planning another race in the Middle East for 2021, in the city of Jeddah, home to nearly four million people. The race will take place prior to the Abu Dhabi Grand Prix. In Abu Dhabi, the Formula 1 season has traditionally ended several years ago. Because it is a street circuit, the city will need a lot of time to prepare, so a spot on the calendar later in the year is obvious. Formula 1 would be looking for another deal in the lucrative Middle East for next year. A partnership with Saudi Aramco, one of the largest oil companies in the world, was announced in March. Partly because this collaboration has been delayed by the coronapandemic, a race in the prosperous country would be looked into.
 
RIP Clive Byfield who sadly passed away on Monday 14 September 2020
All at McLaren remember our team-mate and friend, Clive Byfield who sadly passed away on Monday 14 September 2020. Clive Byfield was a renowned personality within the Quality & Production areas for more than 20 years at McLaren Racing. For those that worked with him, he will be remembered not only for the great pride he took in his work but his mischievous sense of humour that accompanied it. He was a stalwart for doing what needed to be done and supporting those around him. Clive’s relationship with McLaren goes back even further than his time at McLaren Racing. He joined Nicholson McLaren Engines Limited in 1973 as an engine builder at the David Road site in Colnbrook, where he built the Ford Cosworth DFV engines that powered James Hunt to the 1976 World Championship – an appreciative James later presented Clive with an engraved silver tankard to thank him for all his efforts. Engines were Clive’s first love: he knew exactly what it took to get the very best performance from them. And, over a period of nearly 25 years, he worked his way up from the shop floor to workshop foreman and on to John Nicholson’s second-in-command.

When Clive joined McLaren Racing in 2000, he began work in the composite inspection area mastering, among other skills, the Faro Romer arm. With this latest technology of the day, Clive completed several firsts for McLaren, including the first full 3D inspection of the McLaren chassis and the first laser surface scans of new components, in addition to pioneering the software development with our supplier. Clive’s passion for quality and racing laid the foundations for our modern composite inspection environment, a testament to his work at McLaren. For those lucky enough to get to know Clive personally, they’ll always remember a thoughtful individual who aimed to lift the spirits of those around him while doing his job with pride.

May he rest in peace.

Aston Martin to go British Racing Green

From 2021, the current Racing Point will become Aston Martin. Whereas the car is now completely dressed in the pink of the sponsor BWT, Lance Stroll indicates that a new colour will be seen in Formula 1 in 2021. In recent years the livery of Racing Point has been perhaps the most striking. The all pink livery is quite unique in Formula 1 and so as a fan of the team it is not very difficult to discover your favourite drivers during a Grand Prix. In 2021 this might be a bit more difficult if the team chooses other colours.

According to Auto, Motor und Sport, Stroll has announced that Aston Martin's car will be dressed in 'British Racing Green' in 2021. This green is Britain's international racing colour and although there is sometimes discussion about the exact hue of the colour, a dark, deep green can be assumed. Still a unique colour in the Formula 1 paddock, but a dark livery nonetheless. Mark Antar Design designed a design based on these colours and that looks very cool. The question is what will happen to sponsor BWT? Will we see the pink colours on another car in 2021 or will the sponsor stay connected to Aston Martin?

Sochi FP1
Valtteri Bottas was fastest in the first practice session at Sochi while team mate Lewis Hamilton was unexpectedly last among the 19 drivers who set times. The first 90 minutes of running at Sochi Autodrom was also disrupted by separate crashes for Carlos Sainz Jnr and Nicholas Latifi. After very slow starts to practice in Monza and Mugello, cars were straight out on track at Sochi with several teams bringing upgrades Lance Stroll running new parts on his Racing Point and both McLaren cars trying a new “nosebox” evolved from their Mugello update.

However McLaren’s running was not helped when Sainz crashed into the barriers at turn seven. The MCL35 slid in backwards, breaking both the wing and the car’s rear structure. He was able to return to the pits with the wing hanging off the back of the car, under warning from his engineer to go as slowly as possible. He only managed half an hour of running in the upgraded car, which his team were unable to repair before the end of the session. Latifi also crashed in almost the same place later in the session. Drivers had been being warned about crosswinds in turns 10 and 13 but both Latifi and Sainz’s crashes seemed to be the rear sliding out from under them in the 90-degree corner at turn seven. Latifi’s crash was heavier than Sainz’s, going into the barrier side-on with the left of his car crumpled into the tyre barriers, bringing out a brief red flag to retrieve the Williams.

Daniil Kvyat looked rapid early briefly topped the times at his home grand prix while running on medium tyres early in the session. But Bottas was able to move ahead on the harder compound, followed by the Renaults, Verstappen and the Racing Point cars. Hamilton suffered an uncharacteristically low-key session, only setting times on hard tyres and without a huge amount of running after suffering a lock-up what flat-spotted his front-left. He finished the session 19th fastest, almost three seconds back from Bottas’ time. His initial attempt at setting a soft tyre time was also disrupted by the Virtual Safety Car triggered out by Sainz’s crash

Several drivers complained about being held up by their rivals, but no investigations were registered, and Bottas finished the session fastest with a 1’34.923. As the track was still very green at this stage in the weekend, this was over three seconds why of Charles Leclerc’s 2019 pole time of 1’31.628.
 
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