Sponsorship, a huge pawn in the motorsport game providing money, connections and a broader access to a variety of audiences. But when sponsorship agreements and relations go awry, what do Formula 1 teams do?
Recently, Haas F1 Team has been in the headlines over issues concerning their current title sponsors, Rich Energy. After losing a legal battle over copyright issues, Rich Energy have decided to part ways with Haas F1 Team. Previous to the British Grand Prix last weekend, rumours were already circulating as Rich Energy announced over social media their termination of sponsorship from the American team, however, these were quickly deemed unlawful due to contractual obligations. As such, Silverstone saw Haas sporting their classic 2019 livery with Rich Energy front and centre.
However, after such lawsuit, Rich Energy will now be known as Lightning Volt. Along with this, Rich Energy have terminated their sponsorship of Haas F1 Team with immediate effect due to "repudiatory breach of sponsorship agreement by Rich Energy". As such, Haas can claim £35 million from Rich Energy as they are contractually obliged to sponsor the Formula 1 team until December 2022, thus the early termination allows for monetary value.
But what does this mean for the Formula 1 Team? Thankfully, Gene Haas, Haas F1 Team owner, can sustain the daily runnings of the actual team and therefore this won't have a detrimental effect on the team, just a small bump in the road to success.
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