Ecclestone & FOTA Save Williams from Bankruptcy

Frank Williams admitted that the latest cost-cutting plan introduced by the FIA – and backed by Formula One Teams Association (FOTA) – for Formula 1 had a life-saving effect for his team. The former championship winner revealed that the situation was close to unbearable given the loss of sponsors lately, and the only way an independent team could survive the economic crisis was for the series to feature a complete reorganization.

“(Given) the financial pressure we are under, the consequent changes to the rules to reduce the cost of racing are a major benefit,” said Williams in an interview for the British newspaper The Financial Times.

Williams was one of the first team principals in Formula 1 to ask FIA for the introduction of a budget cap in the sport. The Englishman insisted that the international body should not limit themselves to the cost-reduction plan approved in December 2008, but should continue to find new ways of reducing costs in the sport.

While backed by some teams in the F1 paddock and by the president of FIA himself, Max Mosley, the proposal was slammed by F1 supreme Bernie Ecclestone. He insisted that, should certain manufacturers commit to compete in Formula 1 for the long run, they should be allowed to spend how much they want.

Having lost plenty of sponsors lately, including Brazilian oil company Petrobras and Chinese PC company Lenovo, the team was recently given 14.5 million GBP by F1 commercial rights owner Bernie Ecclestone to survive the current economic downturn, according to a report published by the Financial Times.

“They are entitled to some back-payments only due for payment when they sign the Concorde. We said to them we will pay you now,” admitted Ecclestone for the aforementioned source.