The Rise and Fall of Arrows Grand Prix
Atlas F1 GP Correspondent
The news that Arrows Grand Prix are in dire financial situation came as little surprise to the Silverstone paddock, but as events unfolded over the weekend it became shockingly clear just how deeply tangled team owner Tom Walkinshaw has gotten himself, in attempts to prolong the existence of his dream - to run a successful F1 team. In the most detailed chronicle published to date, Will Gray unravels the wrangles and hindrances that Walkinshaw has been facing over the last four years, and those he is likely to face further in the near future. Exclusive for Atlas F1
Beneath the hard exterior lies a very complicated man with a very astute mind - and a real fighter. He was faced with the total collapse of his Formula One business when, two months in debt with Cosworth, he was forced to find $4.75 million in less than 48 hours. Somehow he did it. But, it seems, that was still not enough.
Atlas F1 has attempted to unravel the way in which Walkinshaw ended up in a contractual nightmare which left Cosworth commercial director Bernard Ferguson admitting there are so many injunctions connected with Arrows Grand Prix, that nobody was truly sure what they could and could not do during the dealings which led to Walkinshaw dipping into his own pocket to fund the crucial continuation of the team.
In a hastily arranged press conference at 8:30am (British time) in the Silverstone paddock on Saturday, Walkinshaw said that the situation was "very complicated" but explained that the problems had occurred when part owners Morgan Grenfell, the finance investors owned by Deutsche Bank, prevented any investment being pooled onto Arrows Grand Prix until their shares were sold.
Walkinshaw took the helm at Arrows, which first entered Formula One in 1978, at the start of 1996 and moved the operation to his TWR group's Leafield Technical Centre headquarters. The team ran satisfactorily in the early days, scoring a ninth place in the Constructors' Championship in Walkinshaw's first season and moving up to eighth in 1997, when ambitious plans saw former Ferrari designer John Barnard and reigning World Champion Damon Hill give their high profile names to the Arrows cause.
That year saw the team's best ever result, a second place at the Hungarian Grand Prix after victory fell from Hill's grasp with a technical problem late in the race. Arrows, it seemed, were on the rise, and Walkinshaw, who had been involved with the Benetton team with which Michael Schumacher won his first World Championship in 1994, looked to be on his way to achieving success with his own team. But then he began to attempt to expand by selling up to external parties. And so the story began...
Walkinshaw manages to convince Morgan Grenfell to convert the loan that they gave to Arrows following the Prince Malik problem by diluting their position in the shareholding and take preference shares in place of their debenture, which then had a 10-year payment schedule.
The company also announces that they will terminate their current sponsorship deal with Sauber at the end of the season, after team boss Peter Sauber insisted on the signing of Finnish youngster Kimi Raikkonen instead of Bernoldi. The signing begins a strong link with the energy drink manufacturers.
Unknown Lincolnshire farmer Charles Nickerson, an old friend of Walkinshaw's from touring car racing in the 1970s, begins an investigation into the purchase of the company - and therefore its rights to race. The company is no more, but under French law its registration number still exists. The theory is that if Nickerson can snap up that registration, he can also obtain all the team's rights to race in the Formula One World Championship under the Concorde Agreement, as long as he makes it to the grid in Australia.
Walkinshaw is still trying to block Stoddart's efforts to obtain the money, and, it is rumoured, has offered to drop his obstructions if his rival agrees to split the $12 million two ways. His attempts fail.
Stoddart enters the meeting with fighting talk, but adds: "I am not making any predictions because when you think something is right both legally and morally it doesn't seem to carry a lot of weight." Walkinshaw, meanwhile, fights his battle quietly.
It later transpires that Morgan Grenfell have put an injunction on Walkinshaw preventing him from introducing any new investors into the team, or allowing any current investors to add funds to the budget, before the finance investors' 45 percent stake is sold.
Frentzen later admits: "I was expecting to race, then I got to know that we were not practicing but I was at no time really in doubt that we would not be racing at all this weekend. I knew there was a situation, things were going on so I was waiting basically to hear something. I was on standby ready to go any time."
"I have known Tom for a long time," said Jordan. "Tom is a miracle maker because I will promise you he will be here, hell or high water, tomorrow. I can guarantee it to you. I know the guy, he is a great fighter." Rumours now circulating suggest the cars are on their way to the circuit in a transporter, but are parked in a lay-by and could be impounded before they arrive at the track.
Frentzen and Bernoldi are left to wander around the paddock in their race overalls as the call to drive fails to come in either morning or afternoon session. Frentzen later reveals how his day panned out: "I spoke with my family, I did a little of business around on my phone, and we were also still running the simulators, developing data. There is always some work to do even when you are not running."
"We negotiated a settlement that we see is robust for the rest of the season," said Ferguson. "We now have a solution that I think is good for everybody, good for F1 really, because we don't want this kind of thing going on every weekend. It has been very difficult for them and for us.
"There were so many conversations but the bottom line was that we had to keep working away and chipping away, and finding a way that we could satisfy everybody's needs without going against any of the judgements that appear to have been made over the last few weeks.
"It was just a process of talking and talking, it was all done very amicably, everybody had the same objective in mind, we wanted to race, and fortunately we managed to come up with a set of agreements that satisfied the needs.
"It was purely coincidental that it was the British Grand Prix. There were not any plans for a confrontation. If these things drag on, you end up with a situation that the team can't recover and that we can't recover."
But it still remains a mystery how Walkinshaw was able to pay the money that allowed his cars onto the grid at Silverstone, despite the legal injuction from April 2002 that apparently forbade him to do just that. There are two ways in which he could have done it: Either he convinced Morgan Grenfell to allow him to add extra funding to the team, or he went against the injunction.
Done in the one way, he secured a crucial victory. If, however, done in the other, then he has risked potentially more than he invested. Ferguson surely knows, but he gives nothing away. "It looks like he has taken a risk, doesn't it," he said. "He indicated that he paid the money, and he did." The next part of the story, therefore, awaits to be unfolded.
The news of Arrows boss Tom Walkinshaw's precarious financial position, which reared its head in the form of an amicable but embarrassing head-to-head with engine suppliers Cosworth last weekend, came as no surprise to many. But the fact that the stocky Scotsman is one of the canniest operators in Formula One's 'Piranha Club' left many astonished that such a situation could be played out in one of the most high-profile events on Britain's sporting calendar.
Walkinshaw, a greatly respected member of Britain's Rugby Union elite as owner of Premiership side Gloucester, is believed to have upwards of 140 companies under his control and his complicated web of business schemes involve many areas of British industry. His TWR (Tom Walkinshaw Racing) group, which to a certain extent runs Arrows Grand Prix, is a major player in the motoring world and is even involved with the development of a Grand Prix circuit on the outskirts of Moscow.
Walkinshaw sells part of his Arrows shareholding to joint bidders Morgan Grenfell and Nigerian Prince Malik Ado Ibrahim in a bid to secure the team's short-term future. Former owner Jackie Oliver is completely bought out and the shares are split up, with 25 percent retained by Walkinshaw, 25 percent going to Prince Malik, and 45 percent taken by Morgan Grenfell. The remaining 5 percent share is left reserved for the management team at Arrows to enable possible future employee incentives.
Morgan Grenfell insist they will not be active in the team, despite their major shareholding, while Prince Malik is eager to be involved in marketing and claims to be the first black team boss in Formula One. The team, however, is still to announce a sponsor for the year because their 1998 title sponsor Danka is in financial difficulty.
Rumours in the paddock at the Hungarian Grand Prix suggest that Prince Malik has left the team, selling his 25 percent stake after falling out over his failure to bring in promised funding from his 't-minus' brand, which has adorned the car throughout the year despite mystery surrounding what the brand was actually trying to promote. Rumours also suggest increased funding is on its way for the 2000 season from oil company Repsol, who support Arrows's Spanish driver Pedro de la Rosa, while Walkinshaw is tipped to be attempting to lure Nissan into Formula One for 2001.
Arrows announce that Prince Malik has, indeed, left the team, but there is contention over who has bought his shares. Stories suggest that Walkinshaw has taken over the 25 percent stake to take his share up to 50 percent with Morgan Grenfell retaining 45 percent and the final 5 percent remaining with the team. Following Walkinshaw's Silverstone 2002 press conference, however, is now clear that Morgan Grenfell had to cover the loss with a long-term loan to Arrows, so they had a debenture in the company (a long-term loan backed only by the integrity of the borrower).
The team is in a muddle over who is their title sponsor, as the Formula One circus heads for Australia for the opening race of the season, and it seems Walkinshaw is playing a number of investors off as they bid for top spot on the car. The team was set to become 'Chello Arrows' with the Broadband internet company having been told they would be the title sponsors, but the launch is cancelled two weeks before it is scheduled to take place because of the appearance of a new 'title' sponsor.
Walkinshaw is reportedly called by telecommunications giant Orange while skiing in the French Alps, leading to the initiation of a new sponsorship deal.
Orange is announced as Arrows's title sponsor after securing what is believed to be a $110.5 million three-year deal, which will last until the end of 2002. Arrows's sponsorship package now looks healthy, with multimedia software company Lost Boys and Repsol also on board. So too are the Morgan Grenfell-owned betting company Coral International, who decide to promote their Eurobet brand on the bright orange cars.
Italian minnows Minardi are struggling to survive into the next Formula One season and are searching for a saviour. They have neither the budget nor an engine to compete in the 2001 Championship, but Formula One ringmaster Bernie Ecclestone interferes to help the team by securing a supply of Ford engines, as long as the sufficient budget can be obtained to pay for them. Ecclestone, it appears, has not provided any financial help, but admits: "I have done all I can to give them a hand."
Morgan Grenfell announce that they have made dramatic losses after dabbling in Formula One supremo Bernie Ecclestone's Formula One Holdings company, SLEC. The sale of their shares to German media corporation EM.TV lost them an incredible $365 million. That loss ends plans that Morgan Grenfell had been considering to buy itself out of owners Deutsche Bank. Internal rumours suggest that the top boss of Morgan Grenfell wants to sell betting company Coral, which was bought at the end of 1998, and a power struggle develops within the company.
Eurobet shock Arrows by pulling out of their sponsorship deal with immediate effect after suffering losses of more than $70 million over the year 2000. "It was our biggest deal but it is a tremendously expensive sport," said Eurobet boss Simon Clare. "We are now refocusing."
The online Betting agency had a three-year contract with the team and their departure comes as a blow to Walkinshaw, who is forced to seek a solution for the lack of funding from Coral International. His problems are compounded when Chello also leaves the team, creating a budget deficit of around $50 million. But funds at Coral owners Morgan Grenfell, who continue to own a 45 percent share in Arrows, have topped out, so there is no money available from that source.
The team reveals a new link-up with energy drink Red Bull as they hold their commercial launch in front of the garages in the Melbourne pitlane during the build-up to the Australian Grand Prix. The new sponsor's arrival has come about because of the arrival of Brazilian Enrique Bernoldi, who has been backed by Red Bull throughout his career and has moved to Arrows to make his Formula One debut.
Arrows sign Dutchman Jos Verstappen for another year, with Enrique Bernoldi also expected to drive for the team despite Verstappen's declaration that the Brazilian is the worst teammate he has ever had.
The tragic terrorist attacks on New York send shockwaves around the world and immediately dampen discussions on the future sponsorship involvement with Formula One for many companies. Walkinshaw has been speaking to a number of potential investors, but they all put their interest on the back burner as they try to come to terms with the economic impact of the disaster at the World Trade Centre. Walkinshaw is forced to begin to fund the team himself to ensure it escapes insolvency.
Team bosses at the press conference in season-ending Japanese Grand Prix declare that Formula One is in the grip of a global recession and warn of problematic times ahead as the season comes to a close.
Privateer team boss Eddie Jordan admits: "It would be preposterous for us in this sport to think we are immune, that everyone else can cut budgets by 20, 30, 40, 50 per cent to make sure [we [revail] the tough times that are confronting us - and it's not just because of September 11. I think it's been on the cards for some time. The world is in recession and we are not recession-proof and unless we make and cut our cloth to suit we will suffer the penalties."
Prost Grand Prix has been struggling to find funding for 2002 throughout 2001 and, with the close season well underway, team chief Alain Prost, a four-time World Champion on the track but a frustrated businessman off it, denies that major shareholder and former Arrows driver Pedro Diniz has left the team but admits they are in a "serious situation" as he continued to seek new investors.
Prost Grand Prix folds after failing to find any backers who could provide a strong proof that their investment would offer the company long-term stability. The assets of the former team are passed into the hands of the liquidators, who can now sell them off part by part to the highest bidder.
Arrows Grand Prix are forced to pay former driver Pedro Diniz $700,000 in compensation after dragging the Brazilian through the courts over his departure from the team at the end of 1998. The Court of Appeal, in London, backed the High Court's finding of 1999 that Diniz's contract had been validly terminated, leaving Arrows little option but to pay off their former driver.
Arrows sign Heinz-Harald Frentzen, confirming rumours that have been running throughout the winter that Verstappen was set to be ditched, despite having a watertight contract. His manager, Huub Rothengaater, declares that they will fight the team for loss of earnings as all the remaining seats in Formula One have now been filled and the sacking has seriously damaged Verstappen's Grand Prix future.
Walkinshaw announces at the Australian Grand Prix that his TWR group are involved with a company which has purchased the assets of Prost Grand Prix. The Scot tells reporters: "TWR is going to be supporting the engineering side of it but the principals behind it will announce the whole thing when they're ready. I think they will do the job properly but it is up to them to tell you what's what. I think Minardi made an offer as well but they were unsuccessful, but Arrows is in good shape for the year, so that's where I'll be focused."
The so-far unnamed team is understood to have turned up in Australia with two nosecones in a bizarre bid to enter scrutineering. It is, perhaps, believed that if the team presents itself to the Australian stewards, then it will be accepted as part of the championship, will not forfeit a race with the company trading under insolvency, and will, therefore, not lose their the right to compete in Formula One.
Nickerson, through the newly-formed Phoenix Finance, is named as the purchaser of Prost Grand Prix's rights to race. He picks them up for a sum of around $2 million from the French team's liquidators in a last-minute meeting in France. Walkinshaw is thought to have been instrumental in these meetings, although he insists his involvement is purely as a supplier of engineering knowledge to the team. It seems more likely that he is using Nickerson to front a scheme by which he buys the rights to win $12 million in television rights - a clever scam, if that is what it was.
Minardi boss Paul Stoddart had also been bidding for the rights, but claims he was "screwed" by his rival and threatens court action if 'Phoenix' manages to get up and running. Stoddart begins fight for the television money, which he sees as rightfully his.
A source at the FIA declares that Phoenix can now not claim the Prost Grand Prix television money even if their purchase of the team is declared legal because the team has missed the opening Grand Prix of the season whilst insolvent. It seems that Walkinshaw's apparent plan has failed.
Members of the Phoenix team, most carrying TWR papers, turn up on a Malaysian Airlines flight to Kuala Lumpur, as the team bids to enter its cars in the Malaysian Grand Prix. Arrows marketing team member Helen Shergold is assigned as temporary press contact, but says little of the situation and is able only to explain that the team members are wearing all-blue uniforms and that there are cars in Malaysia which they will attempt to get through scrutineering at the Sepang circuit.
The Phoenix cars are blocked at immigration and impounded because they are deemed not part of the Formula One World Championship and cannot, therefore, be granted the special entry allowances offered to all the other teams. Phoenix's plan to enter the second round of the season is flawed and Walkinshaw's friend's efforts to get the team on the grid are worsened.
The FIA issue a release explaining that Phoenix Finance's Grand Prix team will not be allowed to take part in the Malaysian Grand Prix or any subsequent round of the Formula One World Championship. "The FIA has informed Phoenix and Mr Nickerson that they are not entered in the 2002 FIA Formula One world championship and that it cannot allow them to participate in Malaysia even on a provisional basis." Suggestions were that Nickerson had been given "flawed" legal advice, but Phoenix fire back with a release stating "Phoenix intends to redress this situation and to take up its rightful position on the starting grid as soon as possible."
Following continued discussions with interested parties, Walkinshaw tells Morgan Grenfell that he found a new backer for the team, but the investment company puts an injunction on the team preventing Arrows from completing the transaction, adding that any new investor should buy part or all of their 45 percent stake in the team rather than just offer sponsorship. It has become clear, following Walkinshaw's press briefing at Silverstone, than neither he nor any current investors were permitted to contribute any further funding to the team. The legal barrier would prove to be crucial in the survival of the team and discussions begin over how to solve the situation. Cosworth are kept informed.
Team bosses meet in the A1-Ring paddock ahead of the Austrian Grand Prix to conduct discussions over the financial problems in Formula One. Stoddart has already declared that three teams are on their way out of Formula One (naming Minardi, Arrows and Jordan) but after the meeting with Bernie Ecclestone, all the team owners are told to keep quiet and present a positive and united front for the sake of the sport.
Phoenix Finance lose their court battle against the FIA over the purchase of the assets of Prost Grand Prix and are also asked to pay court costs. Max Mosley later describes the whole process as "a frustrating waste of time" and claims the case has "cost them a fortune." The decision appears to be another blow for Walkinshaw.
Arrows are understood to have been refused the use of their Cosworth engines after falling behind on payments, and are faced with the prospect of missing scrutineering for the prestigious Monaco Grand Prix, which would halt their participation in the race.
Walkinshaw manages to raise the required cash to fund the supply of engines in time to get his cars through scrutineering and they are allowed to compete in the race. It appears the Arrows boss, who must pay for his engines in monthly installments, has now paid all outstanding invoices up to and including those for April. He is still to pay the May installment.
Minardi reveal in the affluent surroundings of the Monaco paddock that they have been forced to cut 22 staff from their British base in Ledbury. "It's not necessarily going to stop there," said Stoddart. The angry team boss believes he will still not see the television money he believes is rightfully his, even though the Phoenix Finance bid for the assets of Prost Grand Prix has finally been thrown out. "I am sick to death of this whole Phoenix issue," adds Stoddart. "I came into Formula One for the sport, not to play politics."
Stoddart threatens to sue Walkinshaw after the Arrows boss circulates a letter around the Canadian Grand Prix paddock calling to team bosses to block his rival's attempts to claim all estimated $12 million of television money. Stoddart has already sent a letter to the team chiefs stating his position, but Walkinshaw's is signed by five fellow bosses. It appears that the Arrows man is heading for victory in the fight.
McLaren-Mercedes team boss Ron Dennis openly backs Walkinshaw's efforts to stop Stoddart getting his hands on the television money, claiming that the end of Prost Grand Prix cannot promote Minardi to 10th place in the 2001 championship which finished with Prost still active and they would therefore not be entitled to any more than a share of the estimated $12 million 'floating funding'. "There are a quantity of teams, and I am firmly in that can, who do believe strongly that Minardi has no legal rights to the funds," said Dennis.
Formula One team principals meet with FIA president Max Mosley and Bernie Ecclestone at a hotel near Heathrow Airport to discuss the problems facing the sport in what is fast becoming a financial crisis. Stoddart is still trying to convince his rival team chiefs he is the rightful owner of Prost's television money, while Walkinshaw is trying to get them to agree to split the money ten ways (Toyota are not eligible for the funding because they were not in the championship in 2001) so that he can secure more than $1 million extra for his team.
Arrows receive an offer for the team from current sponsors Red Bull, but the team cannot sell because of Morgan Grenfell's injunction.
Stoddart confirms to Atlas F1 that he has finally been given the television money he insists he needs to complete the rest of the season, but the Australian is strongly criticised by many rivals for "whinging" too much and "being a cry baby" in a bid to convince Ecclestone and Mosley that the money should be handed to him rather than spread amongst the teams. The situation is a huge blow for Walkinshaw, who had been hoping to secure extra funding for the team.
Cosworth have still not received a payment for engines since that given to them at the Monaco Grand Prix. Walkinshaw now owes two instalments, those for May and for June, and Cosworth inform him that he must stump up the money before the British Grand Prix or he risks being unable to enter his cars in his home event.
While Arrows engine supplier Cosworth opens doors to journalists to show off latest F1 engines - with the team's driver, German Heinz-Harald Frentzen and Enrique Bernoldi still unaware of the depth of the problems as they parade around the factory as special guests, Arrows are in High Court at a hearing of the 'Morgan Grenfell and Deutsche Bank vs Arrows Grand Prix, Arrows Autosports, Tom Walkinshaw...' case.
Rumours circulate in the Silverstone paddock as journalists assemble for the British Grand Prix that Arrows owes $4.7 million to Cosworth and cannot race until the money is found. The team's transporters are parked in the paddock and the motorhome is set up, but all the garages along the pitlane are open except for those of the Arrows team, who have placed one nosecone outside the closed doors to suggest all is well.
Arrows Lawyer Robin Potts declares at the High Court in London that the team is "doomed" short of a miracle. Justice Sir Gavin Lightman said that the defendants - Arrows and Walkinshaw - "can only be described as underhand and improper, indeed downright dishonest."
Walkinshaw does not turn up for the FIA press conference which he is scheduled to attend alongside fellow team bosses Flavio Briatore and Eddie Jordan. The pair are told of the court report, and both insist that Walkinshaw will fight back.
The stewards of the meeting grant Arrows an extension on scrutineering, which should normally have been completed by 4:00pm on Thursday. The official FIA release declares that the team now has until 10:00am on Friday to get their cars into the race.
Walkinshaw is called to present himself in front of the stewards at 10:15 on Friday to explain the actions that led him to miss the FIA press conference on Thursday. He faces a possible fine or some other punishment for the misdemeanour.
The Arrows cars arrive at circuit in a plain white transporter and are wheeled through the pitlane. It is understood that both machines are fitted with Cosworth engines, but that the Northamptonshire-based company has taken out the electronic control units (ECUs) which enable the powerplants to be fired up. Without these devices, the cars will not be able to pass the scrutineering. Walkinshaw is, effectively, being held to ransom.
After an antagonising wait, Arrows are informed by Cosworth that the ECUs will be provided for them to pass scrutineering, but will then be taken away to prevent them running until the money owed for the engines is paid. Bernard Ferguson later explained: "If they did not make scrutineering they would have been dead, and we clearly wanted to preserve the value of the team. That gave a bit of extra time, until qualifying."
The High Court ruling, which failed to see Morgan Grenfell's ban on new investment lifted, has led to crisis meetings and Walkinshaw is at the track early to begin meetings with Cosworth officials, who have come to Silverstone especially to discuss the situation with the Arrows boss. Ferguson is the main player in the discussions, while technical director Nick Hayes is also involved in day-long meetings inside the team motorhome which include a full run-through of all Arrows legal documents.
A source at Arrows confirms to Atlas F1 that the team has passed scrutineering and the FIA confirms this with an official statement, signed by FIA technical deligate Jo Bauer, declaring: "The car numbers 20, 21 and the T-car of the Orange Arrows team underwent preliminary scrutineering this morning. These cars were found to be in conformity with the safety requirements of the 2002 FIA Formula One Technical Regulations." The source insisted the team was now preparing the cars to take part in the morning's opening practice.
Walkinshaw escapes with no punishment for missing Thursday's FIA press conference, and an FIA release, signed by race stewards Paul Gutjahr, Olafur Gudmunsson and Anthony Scott-Andrews, declared: "The Stewards accepted that exceptional circumstances prevented his (Walkinshaw's) attendance and no further action was deemed necessary."
Cars head out onto the track for the opening practice session of the race weekend as rain soaks the Silverstone circuit. But the Arrows cars remain in their garage as engineers appear to look busy working, and it seems that the ECUs are still to be delivered.
Bernoldi heads out of the paddock as a gaggle of reporters clamber for the Brazilian's comments on the situation. He insists he is hopeful of racing on Sunday, but tellingly adds: "It doesn't look good, does it." Meanwhile, reporters hang around the Arrows motorhome, waiting for news. A Cosworth source hints at a search for a compromise deal, when he comments: "We would not be meeting if we didn't think there would be a solution."
Walkinshaw emerges from the motorhome in apparently relaxed mood, with a smile on his face. The Cosworth team have disappeared, and although he refuses to comment as he chats to a couple of members of the media, he consoles his motorhome staff as they prepare the mechanics' evening meal. "When your head dies, your body dies with it," he says, with a smile on his face as he insists he must remain positive. Signs begin to suggest a deal has been brokered.
As members of Arrows marketing department rush around the motorhome with pieces of paper flying in all directions, the Cosworth team returns with a notebook, in which is a roughly-written document that Walkinshaw signs, rips out, and hands back. Both Ferguson and Hayes receive one-pace typed documents from Arrows and leave. Signs strengthen that Arrows will be on the grid on Sunday as mechanics begin to prepare the tyres for Saturday's practice session.
Walkinshaw ushers the members of the media, with whom he has been chatting over the past hour and a half, out of the motorhome as he calls all his staff in for a meeting. The heavens open and rain pelts down on the paddock tarmac as reporters who have been in the media centre rush out to join the ever-growing throng of journalists now standing underneath the tyre cover opposite the motorhome. The meeting lasts for around 10 minutes.
One member of the Arrows team who has been working in the team transporter hops over the tyres and rushes past the assembled media as the staff leave the meeting and cries: "How did I miss that!" All staff have been told not to discuss the situation with the media but their faces suggest the race is on. Walkinshaw apologises as he insists he cannot inform reporters of the news, but when pressed he says: "I wouldn't play it negatively."
It is understood that the deadline for Arrows to pay Jos Verstappen's demands of an undisclosed but hefty sum for his sudden sacking at the start of the season comes and goes, leaving the Dutchman free to instigate a winding up order on the team.
Walkinshaw holds a hastily arranged press conference in the Arrows motorhome, to explain his situation to the media. It is understood that a revised payment programme has been arranged with Cosworth, but Walkinshaw admits that he has paid for the weekend's supply of engines out of his own pocket. He also admits that he may be forced to sell the team. He hurriedly ends the gathering as first practice approaches, saying: "Sorry, I have to go and watch my cars."
Attention turns to the track to see both Arrows the first cars out, and Frentzen and Bernoldi immediately shoot up to the top of the timesheets, holding first and second for much of the session. By the end of the two 45-minutes practice sessions, Frentzen is ninth and Bernoldi is 15th. Frentzen says: "Actually, there was not any disadvantage at all. Silverstone is very often raining, and we have done lots of testing in the wet. Today was the first time we had dry conditions so everybody was back to square one anyway."
The qualifying session is complete, with Frentzen 16th and Bernoldi 18th. Their grid positions are not as good as the pair had hoped, but they are both in the race. Walkinshaw's smile will have been broadened not only by that fact, but also by the fact his bitter rival Stoddart had seen his driver Alex Yoong fail to qualify for the second race of the year after finishing outside the 107 percent margin.
Both Arrows cars fail to finish the race and the team pack up after a tough weekend. Frentzen is ironically prevented from what looked like being a points finish by engine failure. Walkinshaw leaves the circuit determined to re-join the circus at Magny-Cours in one and a half week's time. However, he must pay a further sum to Cosworth by Wednesday July 17 to be able to compete. He begins a bid to rapidly change Morgan Grenfell's view to allow him to secure sponsors in time to get back on the grid for the French Grand Prix.
So, as Walkinshaw chases the crucial cash to keep going, Cosworth were able to breathe a sigh of relief after receiving their payment and setting up a settlement that they believe will keep the pressure on him to pay, but keep things a little less 'high-profile'.
Please Contact Us for permission to republish this or any other material from Atlas F1.
 Email to Friend
Volume 8, Issue 28
Atlas F1 Exclusive
The Rise & Fall of Arrows
Q & A with Montoya
Articles
Anoraks to the Rescue
Ann Bradshaw: View from the Paddock
Tech Focus: Transporting an F1 Team
British GP Review
British GP Review
British GP - Technical Review
Champions-Elect
Stats Center
Qualifying Differentials
SuperStats
Charts Center
Columns
Season Strokes
Elsewhere in Racing
The Grapevine
> Homepage |
