Williams sells stake in team
Discussion
Frank Williams and Patrick Head have sold an equity stake in their Formula 1 team to an Austrian investment company.
Williams and Head have been the sole co-owners of Williams since it was formed in 1977 - and there has long been resistance to selling off a part of the company despite frequent speculation linking the team with numerous manufacturers.
However, Williams announced on Friday that a deal has been reached with an Austrian investment company led by investor Toto Wolff for him to have shares in the team. He will also sit on the company's board.
As well as his business activities, Wolff is a part-time racer – having competed in recent years in the FIA GT championship and the Austrian Rally Championship – in which he finished runner-up last year.
Frank Williams is expected to speak later today about the motivation behind the selling of shares.
Williams and Head have been the sole co-owners of Williams since it was formed in 1977 - and there has long been resistance to selling off a part of the company despite frequent speculation linking the team with numerous manufacturers.
However, Williams announced on Friday that a deal has been reached with an Austrian investment company led by investor Toto Wolff for him to have shares in the team. He will also sit on the company's board.
As well as his business activities, Wolff is a part-time racer – having competed in recent years in the FIA GT championship and the Austrian Rally Championship – in which he finished runner-up last year.
Frank Williams is expected to speak later today about the motivation behind the selling of shares.
Mr Wolff back in April -
http://www.youtube.com/watch?v=aOQ_6TM_3Ac
http://www.youtube.com/watch?v=aOQ_6TM_3Ac
Edited by funster on Friday 20th November 10:40
About Toto Wolff: http://en.wikipedia.org/wiki/Toto_Wolff
Sounds like Sir Williams and Patrick Head chose the right person to sell the team to. Of course, we will see in time whether it was truly a good move, but at least Wolff seems to be have a genuine passion for motorsport, not unlike Williams.
Sounds like Sir Williams and Patrick Head chose the right person to sell the team to. Of course, we will see in time whether it was truly a good move, but at least Wolff seems to be have a genuine passion for motorsport, not unlike Williams.
Q&A with Frank Williams
Why choose now to sell a stake in the team?
Frank Williams: I'm 67, I'm not going to live forever. I want to take care of one or two private needs. I've never taken a penny out of the business in 40 years and time is getting on a bit. Most emphatically, I have no intention of stopping my involvement in this company or of ceasing my Formula 1 activities.
Have you sold more equity in the company than Patrick Head, or is it an even split?
FW: The shareholding is of a certain ratio and the sale more or less follows that. I don't want to go into too many details because our new partner is a fairly conservative-minded businessman. I would also emphasise that we've sold a minority shareholding in the true sense of the word.
Can you clarify how much this will leave you with in terms of your involvement in the team?
FW: Nothing changes. Adam Parr, as our CEO, runs the business on a day-to-day basis. I have a keen interest in the sponsorships of the team and work fairly extensively on that with all the other guys here. Patrick is still very involved, comes in every day. Adam comes in every day, and I come in every day. We've all just got to get on with our party. I've done it for a long time and I have no reason at this time in my life to want to stop doing that.
Is it simply a change in ownership, or is it going to have a net capital boost for Williams to the degree that it can change the team's status?
FW: It's entirely for private motives. I've never taken a penny out in many decades and Patrick and I decided that it's time to take care of some other needs and pay a few bills - my mortgage, for example.
What benefits will this have for the team?
FW: He's a very shrewd businessman. He has owned and created a number of businesses, and almost always sold them on for a profit. He's only 37, which is most surprising. He's a very clever young man. He has one or two investments about which he's very tight-lipped. It's also a method of ensuring that everyone who supports this team, namely our partners and workforce are taken care of. The present owners are taking steps to ensure that this all continues. As will inevitably happen, I'm going to get too old to do this one day. So I'd rather not rush into something at the last minute.
Will his business contacts help attract new sponsors?
FW: It's an area in which he is pretty active. I'm not going to disclose too much about it, but it is certainly an area where he can be very useful - finding sponsors.
Will you and Patrick retain such a hands-on status in running the team?
FW: Toto will turn up for board meetings. We have one every six or eight weeks, and he will come to as many as he wants. He doesn't have plans to attend one or two, or to attend every one. It just depends on where he is at any given time. I cannot stress highly enough that he is a minority shareholder, the company is still under my control and I will not relinquish control of the business until I go completely. That's not going to change.
Will Toto have any input into the sporting side of the company?
FW: No. That's not foreseen. Sure, if he has an opinion on something, we'll listen. It would be unwise not to.
You said you won't relinquish control until you stand down. Have you set a timeframe for that?
FW: I have no idea. Generally speaking, Formula 1's my life and as long as I'm mentally and physically able, I'll carry on doing it. I have no desire to go and do anything else, or to sit at home and read the papers.
Why choose now to sell a stake in the team?
Frank Williams: I'm 67, I'm not going to live forever. I want to take care of one or two private needs. I've never taken a penny out of the business in 40 years and time is getting on a bit. Most emphatically, I have no intention of stopping my involvement in this company or of ceasing my Formula 1 activities.
Have you sold more equity in the company than Patrick Head, or is it an even split?
FW: The shareholding is of a certain ratio and the sale more or less follows that. I don't want to go into too many details because our new partner is a fairly conservative-minded businessman. I would also emphasise that we've sold a minority shareholding in the true sense of the word.
Can you clarify how much this will leave you with in terms of your involvement in the team?
FW: Nothing changes. Adam Parr, as our CEO, runs the business on a day-to-day basis. I have a keen interest in the sponsorships of the team and work fairly extensively on that with all the other guys here. Patrick is still very involved, comes in every day. Adam comes in every day, and I come in every day. We've all just got to get on with our party. I've done it for a long time and I have no reason at this time in my life to want to stop doing that.
Is it simply a change in ownership, or is it going to have a net capital boost for Williams to the degree that it can change the team's status?
FW: It's entirely for private motives. I've never taken a penny out in many decades and Patrick and I decided that it's time to take care of some other needs and pay a few bills - my mortgage, for example.
What benefits will this have for the team?
FW: He's a very shrewd businessman. He has owned and created a number of businesses, and almost always sold them on for a profit. He's only 37, which is most surprising. He's a very clever young man. He has one or two investments about which he's very tight-lipped. It's also a method of ensuring that everyone who supports this team, namely our partners and workforce are taken care of. The present owners are taking steps to ensure that this all continues. As will inevitably happen, I'm going to get too old to do this one day. So I'd rather not rush into something at the last minute.
Will his business contacts help attract new sponsors?
FW: It's an area in which he is pretty active. I'm not going to disclose too much about it, but it is certainly an area where he can be very useful - finding sponsors.
Will you and Patrick retain such a hands-on status in running the team?
FW: Toto will turn up for board meetings. We have one every six or eight weeks, and he will come to as many as he wants. He doesn't have plans to attend one or two, or to attend every one. It just depends on where he is at any given time. I cannot stress highly enough that he is a minority shareholder, the company is still under my control and I will not relinquish control of the business until I go completely. That's not going to change.
Will Toto have any input into the sporting side of the company?
FW: No. That's not foreseen. Sure, if he has an opinion on something, we'll listen. It would be unwise not to.
You said you won't relinquish control until you stand down. Have you set a timeframe for that?
FW: I have no idea. Generally speaking, Formula 1's my life and as long as I'm mentally and physically able, I'll carry on doing it. I have no desire to go and do anything else, or to sit at home and read the papers.
Partick Head and Frank Williams have a tied relationship in a similar vein to Ron Dennis and Mansour Ojjeh. Patrick H wanted to reduce his shareholding a number of years ago but was unable to sell without Frank doing the same. With times looking tough at Williams for 2010 it makes sense to sell part of their business to somebody with racing experience, a great dal of money and who is not yet going to rock the boat.
They will both be around for some time but eventually the old guard will go as times change.
They will both be around for some time but eventually the old guard will go as times change.
Iain328 said:
Racers and above all Gentlemen. Good luck to them.
Very refreshing in this day and age to read comments from somebody genuinely not trying to create a "media event" out of something like this. FW had to say something, such is the media interest, but this seems reasonable.It is also interesting to contrast Williams with Ron Dennis. I don't imagine RD has a mortgage which still needs paying...
BigBen said:
skwdenyer said:
It is also interesting to contrast Williams with Ron Dennis. I don't imagine RD has a mortgage which still needs paying...
I find it fairly far fetched that Frank Williams does.Like some others, I think Willaims' choice of investor is curious. Is this really the beginning of Frank's succession plan? Would Frank want to sell a small share to someone with the hope of grooming them to become the majority shareholder? Or would Frank want a fairly weak investor to use as an ATM? I have no clue as to how large of an investment fund Wolff runs, so don't know which of the two roles he could take on. It will be interesting to learn more about him as information comes out.
belleair302 said:
I think Ron has more to worry about that his own mortgage. Just think what buying back his McLaren shares will cost in addition to the upkeep of the 'Death Star' in Woking and whatever his ex wife Lisa walked away or will walk away with!!!
The whopping fine from the FiA, the pain of the Alonso vs Hamilton, Montoya, etc. He has had it tough during his F1 time, and deserves a lot more credit than he gets.
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