February 26, 2009

Williams Formula One team have suffered a huge financial blow when one of their major backers pulled the plug on a deal worth around £10 million ($A22 million) a year.

The BBC said that the ailing Royal Bank of Scotland (RBS) will end its agreement as a direct result of the economic downturn.

On Thursday, the RBS is expected to report a loss of up to £28 billion, a record in British corporate history.

Team principal Sir Frank Williams, whose group has been a permanent fixture on the grid for 30 years, said they would battle on.

"RBS has been a great partner for this team and we are grateful for the way that they have handled this difficult situation,'' he said.

"We are in a strong position to ride out the inevitable challenges of the next two years.''

The partnership with between Williams and RBS, which began in 2005, will now conclude when the current contract finishes at the end of the 2010 season.

The move is part of RBS proposals to cut its funding of British sport by half by 2010.

The bank also says it plans to review its sponsorship deals with individuals such as tennis star Andy Murray.

"We recognise that we are now operating in a very different economic environment and have been reviewing all of our activities since October,'' Dr Andrew McLaughlin, RBS group director, told the BBC.

"It is imperative that we respond to the reality of the situation we face and that we do so in an orderly way that respects the commercial agreements we have in place and the implications for our partners and the jobs they support.''

Williams’s title sponsor is telecommunications firm AT and T.

Last month, the RBS said it would extend its sponsorship of the Six Nations rugby union championship for a further four years in a deal worth £20 million.

Williams has won seven drivers titles in its history, but the last was delivered by Jacques Villeneuve in 1997.

In 2008, the team celebrated its 500th Grand Prix, but finished in eighth place in the championship.