Arrows - 'and now, the end is near...'

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vat_man

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Well, it was pretty much a given anyway, but news has come this morning that Inland Revenue (the UK's IRS, or ATO if you prefer) has a winding up order against the Arrows Grand Prix team to be heard on October 15, over unpaid taxes. I think from memory Frentzen's winding-up order is heard mid-next month.

If the tax office is in there, then it's good night nurse - I wonder if Uncle Tom will even bother turning up...
 
Originally posted by f1king
Why dont they cut the head off already.

Oh, they won't be coming back, that much is obvious - I think once it came through that the supposed sale to that US fellow hadn't happened (and I personally wonder if that was ever on) it was pretty obvious Arrows were gone. It will make a great book one day.

As I said earlier, this certainly explains Walkinshaw's enthusiasm in getting behind the Phoenix/Prost bid earlier in the year - he knew back then Arrows was in big trouble.

It was a bit of a shame - it was a tidy little car that, if they'd had more money at the start of the year to test properly, could have gotten HHF quite a few points.

Lucky the political intrigue and the silly season's been good this year, because the racing's been a disaster.
 
mmmm well that's one down, is minardi next?

In the words of ITV :tv:, 'F1 needs to take a long look at itself'..Though the safety is second to none :thumbsup:
 
Actually, alex, Minardi is doing quite well.

It has won over the sympathy of the crowd, and ofcourse also potential sponsors. Yoong and KL have both done the team well financially. And Webber has proven to be a consistent, good formula 1 driver.
 
Well, curiously Arrows actually settled out of court with Inland Revenue - love to know where the cash came from for that one!

That said, the 28 days for the business to reorganise themselves expires on Friday 18 October, so there's another hurdle. I've heard Frentzen is willing to settle for a lot less than he's actually suing for.

This thing isn't done yet....

Oh, by the way, the Orange sponsorship has expired and isn't being renewed.
 
Originally posted by rufrgt_sn00pie2001
Actually, alex, Minardi is doing quite well.

It has won over the sympathy of the crowd, and ofcourse also potential sponsors. Yoong and KL have both done the team well financially. And Webber has proven to be a consistent, good formula 1 driver.

Not really true Ruf. Yoong is almost certainly out now, which one has to suppose will lead to an exodus of said Malaysian sponsors. They only just had enough money to finish the season, although Stoddart's claim that if he didn't get the $8m "Prost" money, he wouldn't make it past the British GP was almost certainly a large portion of hoo-ey.

No, more serious is the loss of the 'free' engines provided by Asiatech (who have pulled out, and are not going to pursue their chassis dream), as a supply of Ford Cosworths is going to cost in the region of $10m. The fact that they appear to have failed to sell Webber to Jaguar could be a problem for them too. They have to hope that the likes of Bryan Herta can come into the car and bring a lot of US cash with him. Personally I don't see it.

I think that we will see Minardi next year, but that they will be very very poor. Poor enough to retain Yoong? Stranger things have happened, as Gaston Mazzacane and Pedro Diniz will tell you!
 
Originally posted by vat_man
Oh, by the way, the Orange sponsorship has expired and isn't being renewed.

That was always on the cards ever since Hutchison Telecom sold Orange, and they then bounced around for a while. Who owns Orange now? I think it's Mannesmann.

But I think wel will look back in 10 years on how the OrangeArrows tie-up was one of the better title sponsorships. It's a shame really. I think I'm about the only person on :gtp: who actually likes Walkinshaw!
 
Originally posted by GilesGuthrie


That was always on the cards ever since Hutchison Telecom sold Orange, and they then bounced around for a while. Who owns Orange now? I think it's Mannesmann.

But I think wel will look back in 10 years on how the OrangeArrows tie-up was one of the better title sponsorships. It's a shame really. I think I'm about the only person on :gtp: who actually likes Walkinshaw!

Oh, I agree, Orange definitely got their money's worth - much more so than Vodaphone with Ferrari (I'm on record on this here!).

I've no idea of the ownership structure - my partner actually works for Orange in Australia, and they're partly floated here but majority owned by Hutchison Whapoa (apparently a front for Chinese Intelligence if you believe the conspiracy theorists :thatsodd: ).

Tom's an odd one - I was fairly ambivalent about him, although you have to respect TWR's work on the ol' Group C Jags, and the factory Commodores here - but that crap he tried to pull earlier in the year with Phoenix and the TV money, that was below low, and it's hard not to be cynical about the Arrows mess.
 
Just to get a little nostalgic, but F1 has really changed a lot since Arrows was a breakaway crew from the old Shadow team. This was from a time when you could design a chassis, plug in a DFV and a Hewland gearbox, and go F1 racing if you had a million or so smackers to spare.

Shadow had regained a little bit of its edge in 1977, but it wasn't up to the task of winning races as expected (one, in all). Several team members had runaway with plans for the new '78 challenger, and lo and behold, the Arrows was a virtual copycat of the Shadow. Eventually, the FA1 was banned from racing because of its similarity.

Arrows FA1-Ford
02036_8W.JPG


Shadow -Ford
04017_RN.JPG


Well, 1978 was as good as it got for Arrows. Leading the South African GP, a 2nd place in the Swedish GPs, and some good results by Patrese made it a fairly good initial season. But some unusual designs and the lack of a real engine deal until 1984 hurt the teams chances over the years.

They had the championship-winning BMW powerplants from 1984 to 1986 (re-badged as Megatrons through 1988), but were never on the pace of the Brabhams, and eventually, the Benetton. But sucess eluded them.

In 1989 and '90, it was back to the venerable DFZ engine, doing nicely in '89 with a few points here and there, but they never were much of a threat again. There was the Porsche V12 disaster in '91, which effectively ruined their season (the only one in which Arrows didn't score any points, although the cars were usually known as "Footworks" from '91 to '93).

Team ownership and sponsors bounced around several times until 2000, this engine and that engine installed...the team rarely got to settle down to a single powerplant, do significant testing and refine their car.

Damon Hill came within 3/4 of a lap of winning the 1997 Hungarian GP (yours truly, never much of a DH fan was almost crying when he lost that one), but that was a complete fluke and a performance like that has never been repeated. Arrows were just...Arrows, the Charlie Brown of F1.

Things looked on the up with massive sponsorship from Orange, but the Supertecs were ditched for Asiatechs, and it just looked like a silly move from the get-go. The 2002 car was looked quite capable in the hands of HHF, but a severe lack of funds halted development of the car...another sad story.

So what happens next? It's hard to say...but the end from Arrows is coming very soon. Sad, but true, but from 1978-2002, there were no wins for the little A-team.
 
This is from Autosport.com:

Arrows confirms team buy-in

The troubled Arrows Formula 1 team has announced it has signed a contract with unnamed German-based investors.

In a short press release, Arrows confirmed the deal, which will bring vital money to the cash-strapped outfit. The team missed six out of the final seven races of the season due to budgetary problems and had looked set to drop out of Formula 1 altogether.

Rumours of possible buyers for the Arrows team have been circling for some time. The squad did not name the German investors referred to in the press release, stating that the deal must remain confidential until it had been fully completed.

Arrows are also due to return to court this week for a hearing that was adjourned in September. The team has sought the protection of the court in order to provide the time it needs to achieve completion of the new deal.

If Arrows is to race in F1 next season it will have to register its entry with the FIA by Friday.
 
And this from another web site:

ARROWS RESCUE CONFIRMED
2002-11-12 12:57:00


Arrows have confirmed that they have agreed a rescue package with investors following earlier reports in the Italian press.

The beleaguered team has issued a statement, however, detail remains scant.

It reads, "Arrows has agreed and signed contracts with German based investors for the introduction of substantial new equity into the Team. Until we reach Completion, the terms of the deal must remain confidential.

"However, in view of the various parties involved the process is taking some time to complete.

"There was a Court Hearing, adjourned in September, which was due to be heard this week. In light of this, Arrows has sought the protection of the Court in order to provide the time it needs to achieve Completion on the deal. A further statement will be issued at this time."

The saga of Arrows’ survival has been going on since July’s British Grand Prix when it emerged that engine supplier Cosworth was in dispute with the team over missing payments.


Arrows failed to take part in final five grand prix of the year after running short of funds
and the future of the team looked seriously under threat.


However, a report in the Italian newspaper Gazetta dello Sport claims that a company called German Grand Prix Racing has acquired a controlling stake in the team after purchasing Morgan Grenfell’s 51% shareholding. The firm is believed to be a front for investors from the United Arab Emirates.

Tom Walkinshaw will maintain his minority stake in the team and has reportedly been asked to stay on as team manager.

Oliver Behring - owner of Asset Trust Partners, the holding company of German Grand Prix Racing - was quoted as saying the new owners did not wish to be known.

"They have bought more than 51% of Arrows, but I cannot say how much in total," Behring said. "In any case, the acquisition comprises and now goes beyond the shareholding of the merchant bank Morgan Grenfell, which is now out of the picture."

However, it remains to be seen whether the team will be on the grid next season. There are a number of obstacles, not least that the team does not seem to have a viable engine option. Cosworth are still to chasing money owed from last season and are unlikely to consider supplying Arrows again.

Asiatech, whose engines Arrows used in 2001, closed its doors last week and the only other customer engine option is Ferrari. However, the Ferrari package is rumoured to cost close to £25million a season and the Italian manufacturer will want assurances about finance.

The team was also in breach of the Concorde Agreement because it failed to take part in all of last year’s races. Arrows is also likely to face resistance from rival team bosses before it is allowed back in the F1 paddock.
 
These are just estimates...

FIA:
wanting about 100 million dollars

Cosworth:
demanding 50 million dollars

Paying off the other teams:
20 million dollars

Seeing a new can't-get-it's-act-together F1 team fail miserably:
priceless
 
The FIA have just released the entry list for 2003, and it does not feature Arrows, in spite of them lodging an entry with the $200,000 fee.

That, it would seem, is that...
 
So even with the money coming in they wont be able to compete at all next year anyway. They cant even get an engine either. So is it even possible that the might come back in 2004?

For all their misshaps and miseries I did like arrows and as previously stated, the 2002 car was pretty good.
 
Actually - scratch that. I should put my issues with Tom Walkinshaw aside here. It's never a good thing when a GP teams falls over (except maybe for Life and Andrea Moda).

The sad thing here is that because of the poor handling of the team's finances alot of quality people are out of work. As Race Idiot pointed out the 2002 car was actually pretty handy (when it was running). Still, more money for Paul Stoddart...
 
[hopeful]Just because they're laying off staff doesn’t mean there is no arrows anymore, right?[/hopeful]

Edit:Ah you posted something else.
 
Originally posted by Race Idiot
[hopeful]Just because they're laying off staff doesn’t mean there is no arrows anymore, right?[/hopeful]

Edit:Ah you posted something else.

Heh - mate, they're in more trouble than Flash Gordon was - in that episode where Flash died horribly as a result of that trouble.
 
So that means that there is another space for a new team now. Eventually we wont have any teams like McLaren and Williams but just manufacturers.
 
Originally posted by Race Idiot
So that means that there is another space for a new team now. Eventually we wont have any teams like McLaren and Williams but just manufacturers.

Well, I don't know if that'll happen. The sport has been dominated by manufacturers before, and in a business environment where we're seeing car companies consolidate I think you'll see a balance not that different to where it is now, with a couple of factory teams, a couple of teams very close to manufacturers, and 'customer' teams.

The main reason I think this is that car companies have fairly limited patience with spending huge amounts of money for limited success and exposure, so will be a bit more inclined to drift in and out of the sport.
 
Originally posted by vat_man
The main reason I think this is that car companies have fairly limited patience with spending huge amounts of money for limited success and exposure, so will be a bit more inclined to drift in and out of the sport.

I dont understand how they can afford to "drift in and out" of F1 like that though. Although I remember Peugeot pulled out pretty sharpish from making engines, when they realised that they were complete cack.
 
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