Williams is considering a partial or even full sale of its Formula 1 team, as part of a strategic direction with the aim to secure its future in the sport.
Increased financial pressures have occurred with the current coronavirus pandemic, the Grove based team has therefore taken steps in order to secure its future in Formula 1. They have appointed joint financial advisers to assist in its revenue and find potential investors or a full scale takeover.
On Friday morning, Williams' Chief Executive Officer, Mike O'Driscoll, also revealed a termination within the team and their title sponsor ROKiT, a telecommunications company.
Williams finished last in the Constructors Championship for the second consecutive season in 2019. Yet in 2017, they finished fifth.
The team has been experiencing increasing financial issues after a downturn in commercial sponsors and interest. In early April, Williams also announced a £50 million loan from Latifi's father's company, after putting almost the entirety of their historic cars up as collateral.
The announcement about the team's strategic steps comes after the Williams Group revealed its 2019 financial figures, which resulted in a loss of £13 million. Compared to the previous season with a profit of £12.9 million.
A statement from the team read, "The WGHP board is undertaking a review of all the various strategic options available to the Company. Options being considered included, 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 statements goes on to say they had not had any discussions yet about being bought, but there had been talks regarding investment opportunities. "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 regarding a potential investment in the Company."
Mike O'Driscoll also released a statement saying, "The financial results for 2019 reflect the recent decline in competitiveness of the F1 operation and the consequent reduction in commercial rights income. The 2020 Formula 1 season has, of course, been disrupted due to the COVID-19 pandemic, and this will have an impact on our commercial rights income this year."
He continues with, "The Team have also served notice to terminate its relationship with its title sponsor, ROKiT, and major sponsor, ROK Drinks."
In light of this current global pandemic and the increased financial issues within Williams, they have taken extensive precautions, one of them being an increased period of furlough for much of their staff.
With the teams current financial situation as it is, can they continue racing through to the 2021 season?
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