AUGUST 12, 2002
Arrows not going to Hungary?
There are reports on the www.crash.net website that the Arrows team trucks have turned for home while on their way out to Budapest. If that happens there is little doubt that the team will have to miss the event and the implications of that are worrying indeed. If a team misses a race while insolvent (this is obviously an arguable state) it loses all its benefits and rights in relation to the Concorde Agreement. In other words the team is out of the sport. There are however arguments of force majeure that could be put forward to allow a team to miss a race (if not insolvent) although some team principals argue that this will mean that the Arrows team will have no claim to any TV money next year. Once again this is arguable.
It is no secret that in recent weeks Craig Pollock has been talking about a deal with Tom Walkinshaw but this has involved the complicated process of due diligence, which means that the Arrows books have to be looked at by accountants to establish just what the team is worth. Apparently this has led to problems. Why this should be the case is a point of interest. Whatever the case, the deal has not gone ahead as had been hoped.
The question of whether or not the team can go on will be one which will no doubt keep the lawyers happy for some time.