RBS’ Williams F1 team sponsorship ends in 2010

The Royal Bank of Scotland RBS will not renew its contract with the F1 team Williams.

RBS is one of the hardest hit victims of the ongoing global recession.

The ailing Royal Bank of Scotland (RBS) will end its agreement with Williams as a direct result of the economic downturn.

The £12m-per-year contract with the F1 team will end with the close of the F1 season in 2010.

The Williams’ F1 team’s founder-manager Sir Frank Williams, has said that they will find a way to deal with the setback.

“RBS has been a great partner for this team and we are grateful for the way that they have handled this difficult situation,” he said.

“We are in a strong position to ride out the inevitable challenges of the next two years,” he added.

Andrew McLaughlin of RBS said, “We recognize that we are now operating in a very different economic environment and have been reviewing all of our activities since October.”

“It is imperative that we respond to the reality of the situation we face and that we do so in an orderly way that respects the commercial agreements we have in place and the implications for our partners and the jobs they support,” he added.

This news is not only a severe hit to the Williams F1 team, but could also prove to be a harbinger of bad news to all other sports investments RBS has. The bank has invested heavily into other sports like golf, cricket, baseball, rugby union and tennis. RBS has also sponsored individuals, such as British tennis player Andy Murray, golf legend Jack Nicklaus and cricket superstar Sachin Tendulkar.

Other F1 teams also see themselves short of sponsors. In mid-February 2009, Renault lost long-term sponsor ING, the Dutch bank. In January 2009, Credit Suisse announced it was pulling its backing for BMW Sauber.

Honda has withdrawn from F1 in December 2008, because of the global financial downturn. The Northampton shire-based team have been looking for a buyer ever since, with Sir Richard Branson touted as a possible savior, although chief executive Nick Fry and team principal Ross Brawn have been linked to a management buy-out.