SAILING: Arrows' future in Formula One, and even its participation in this weekend's British Grand Prix, is in serious doubt this morning after team boss Tom Walkinshaw yesterday lost a case in the English High Court brought against his team by investment company, and former Arrows shareholder, Morgan Grenfell over millions of dollars which the company believes it is owed by the team.
The action was brought to stop Walkinshaw from selling off the prime assets of the team, namely the huge revenue in TV money from Formula One which Walkinshaw was believed to be using as a carrot to attract new investors to the money-hungry team.
Yesterday, the High Court in London ordered Walkinshaw to pay $7.9 million to various creditors, one of which is Cosworth Racing, the Ford-owned company which supplies Arrows with its engines and is reportedly owed $5 million.
The ruling on those payments means Arrows will also have to clear the unspecified debt owed to Morgan Grenfell, which could sink the finance-starved racing team.
Yesterday afternoon, Arrows personnel were at Silverstone assembling the team's garage ahead of this weekend's home race, but there was no sign of the team's car for the crucial scrutineering session at which the cars are cleared to race. Non-appearance at that inspection normally results in automatic exclusion from the race, but it is believed Walkinshaw has obtained an extension until this morning.
A reprieve on the team's debts and lack of inward investment may not be so easy to obtain. Yesterday's ruling was greeted with dismay by the team's lawyers who were quoted as saying that "nothing short of a miracle" would save the team from "doom".
Walkinshaw's team has been in financial trouble from some time, with sponsorship revenues significantly down on previous years, and millions away from the heady days of 2001 when the team announced a $70 million, three-year title sponsorship deal with mobile phone company Orange.
Since then, the team has found it hard to attract sponsors, especially in the wake of September 11th, although Walkinshaw was able to bring in Red Bull, whose boss, Dietrich Mateschitz, may yet come to the team's rescue.
Ironically, the low in Arrows' financial performance has corresponded with a relatively purple patch in the team's racing form. Matching an unadventurous but reliable chassis to one of the paddock's most highly-rated engines, the Cosworth CR3, and teaming those with Jordan and Prost refugee Heinz Harald Frentzen has yielded two points-scoring finishes, both for Frentzen in Spain and Monaco, after just nine races.
The previous season Arrows scored a single point, that coming from Jos Verstappen in Austria, who was sacked in favour of Frentzen prior to the start of this season.
Verstappen may yet have the last word, as he may appear with a winding up order for the company when he, too, takes Walkinshaw to court next week over matters still extant from his sacking.
Yesterday, Eddie Jordan, himself no stranger to the financial perils of Formula One, offered words of support to his embattled fellow team principal.
"I've known Tom for a very long time and all I can say is he's a miracle maker. Come hell or high water, I'm sure he'll be here tomorrow. He's a great fighter."
Meanwhile, Jenson Button still appears to hold the key to this year's driver merry-go-round. The British driver, who this Sunday will compete in his home grand prix for the third time, is believed to be on his way out of Renault despite putting in strong performance for the French team this season.
Rumours around the paddock have suggested that highly-rated test driver Fernando Alonso will be his replacement, though there is also the possibility that Jacques Villeneuve, who was a target of the team last year, may still leave his troubled home at BAR.
Yesterday, though, Renault boss Flavio Briatore denied that a decision had already been made regarding Button's future.
