BBC SPORT Arabic Spanish Russian Chinese
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX    SEARCH 

BBC Sport
 You are in: Motorsport: Formula One  
Sport Front Page
-------------------
Football
Cricket
Rugby Union
Rugby League
Tennis
Golf
Motorsport
Statistics
Formula One
World Rally
Motorbikes
Boxing
Athletics
Other Sports
-------------------
Special Events
-------------------
Sports Talk
-------------------
BBC Pundits
TV & Radio
Question of Sport
-------------------
Photo Galleries
Funny Old Game
-------------------
Around The UK: 
N Ireland
Scotland
Wales

BBC Sport Academy
BBC News
BBC Weather
SERVICES
-------------
LANGUAGES
EDITIONS

  Wednesday, 14 August, 2002, 10:25 GMT 11:25 UK
Arrows near end of line
Enrique Bernoldi and Heinz-Harald Frentzen race their Arrows at the European Grand Prix this year
Arrows may have raced for the last time

The Arrows team will almost certainly be kicked out of Formula One as a result of their failure to participate in the Hungarian Grand Prix this weekend, BBC Sport Online has learned.

Arrows have said they will not race at the Hungaroring while they try to sort out their ongoing financial crisis.

But if the team do not race, they will have broken several provisions that govern their place in F1 and would be poised to lose all their rights to compete.

That is because their failure to race has stemmed from their financial troubles - if a team miss an event because of insolvency they forfeit all F1 benefits.

And that means that any potential buyer would be extremely reluctant to take on the team, as they would be treated as a new competitor.

New teams have to pay a $48m (31.2m) deposit before they can be accepted into F1.

If Arrows were to launch a legal battle to retain their rights, the case would go to arbitration.

But according to legal sources in F1, it would be difficult for Arrows to win the case, because there is strong evidence that they are insolvent.

  • They have failed to pay their employees' wages for July.

  • They have been struggling to pay for their engines.

  • A High Court judge ruled in July that Arrows had been trading insolvently.

Arrows boss Tom Walkinshaw denies the team are insolvent.

By not participating in Hungary, Arrows are in breach of contract with the organisers.

That leaves them liable for compensation to race organisers under the Concorde Agreement, the secret covenant by which F1 is run.

But Walkinshaw and his management team also face potential criminal action as a result of last month's High Court ruling.

A spokesman for motorsport's governing body, the FIA, said it was waiting for developments and was not making any comment.

Arrows were unavailable for comment.


Road to nowhere

Analysis
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Formula One stories are at the foot of the page.


E-mail this story to a friend

Links to more Formula One stories

© BBC ^^ Back to top

Sport Front Page | Football | Cricket | Rugby Union | Rugby League |
Tennis | Golf | Motorsport | Boxing | Athletics | Other Sports |
Special Events | Sports Talk | BBC Pundits | TV & Radio | Question of Sport |
Photo Galleries | Funny Old Game | N Ireland | Scotland | Wales