US F1 Loses Over $30M after Sponsor Quit

What is currently happening to US F1 may very well be described as the chronicle of a death foretold. It will take nothing short of a miracle for the Charlotte-based organization to financially survive prior to the start of the 2010 Formula One season, as it seems the two main backers that initially joined efforts to help Ken Anderson and Peter Windsor set up the operations have left the building.

Yesterday morning, we've reported to you (citing a media statement from Swiss based Locstein AG) that the aforementioned company withdrew their financial support for the North American team because they saw the organization was going nowhere. Although we initially believed the deal between the two parties was for around $10 million for one season, it seems the actual deal involved more money.

According to an insider (the story is yet to be confirmed, and will probably stay that way for a while), Locstein was prepared to pour in around $32 million for a 3-year period of time into US F1's account. Reportedly, this is the deal Ken Anderson was hoping to secure, once the International Automobile Federation (FIA) had granted his team permission to miss the first 4 races of the season.

Nevertheless, with the Swiss company now gone, another important sponsor for the North Carolina based team, namely YouTube founder Chad Hurley, has also “stopped the pipe.” Additionally, Germany's motorsport-total.com cited an insider within the team as saying that this entire situation is the result of bad management by Anderson.

“USF1 is breaking apart because (team principal) Ken (Anderson) is not able to manage such a project. We hear that sponsor funds could emerge if Ken Anderson goes,” said the insider quoted by the German website.

The FIA is currently investigating US F1's financial potential for the upcoming season of F1, and will issue a decision in due time.