F1: Rich Energy Announces End of Haas deal, Against Investors Wishes

Rich Energy announced that they have terminated their sponsorship contract with the Haas Formula 1 Team via twitter yesterday.

The British energy drinks company cited poor performance but also that the ‘politics and PC attitude’ of F1 is inhibiting its business. It comes but a few days after a court order issued that Rich Energy could not use its stag logo after 18 July as it breached copyright of the logo used by Whyte Bikes.

The partnership was announced at the start of the season when the black and gold liveried VF19 was unveiled at the Royal Automobile Club (RAC) in London. But the partnership has been anything but successful and has been mired by messy politics from both sides.

Rich Energy announced the split unconventially through twitter, likely written or approved by CEO William Storey, citing;

“Today Rich Energy terminated our contract with Haas for poor performance,” read the company’s message on Twitter.

“We aim to beat Red Bull Racing and being behind Williams in Austria is unacceptable. The politics and PC attitude in F1 is also inhibiting our business. We wish the team well.”

https://twitter.com/rich_energy/status/1148994221686370304

Despite Rich Energy announcing their shock split, Haas have insisted that Rich Energy is still its title sponsor, with team principal of Haas F1 Team Gunther Steiner taking to twitter and said:

“Rich Energy is currently the title partner of Haas F1 Team.”

“I cannot comment further on the contractual relationship between our two parties due to commercial confidentiality.”

But Rich Energy currently find themselves under increasing strain as Rich CEO William Storey is required to provide details of the company’s drinks production and financial performance including its relationship with Haas F1 Team by 1 August.

A source representing the companies investors told Autosport that;

“The deal is not terminated and William has no authority to do so. The investors are trying to clear up the PR mess, but it’s business as usual.”

The investors for Rich Energy include; Brandsellers Holdings Ltd, Robert Lee, Charlie Simpson, Neville Weston and Lloyd Tunicliffe.

Thoughts from our Writers

Nathan Hine

So until this is 100% confirmed on both sides, it would be a major blow to the Haas F1 Team financially. Rich Energy seemingly have a lot on their plate at the moment after losing a court case and now being forced to declare the company’s productivity.

As such, I beleive it is better for Haas not to get involved in the company’s misgivings and hope to find a company with financial stability and confidence to invest in the team. Rich Energy have proved to be a rather different face in the F1 paddock, but whether that has been a positive thing is another question.

Connor Jackson

Kevin Magnussen, the teams lead driver finished behind Williams George Russell last round in Austria after a double pitstop and a drive through penalty. It was the second time this season the Dane has failed to beat Russell and he remains the only driver to twice finish behind a Williams on track this season.

Steiner referred to Austria as “negatively amazing” and the French GP as ‘their worst weekend since the team entered Formula 1’. They haven’t scored in three rounds and despite Magnussen’s great qualifying at the Red Bull Ring, they sit ninth in the constructors on 16 points. To that extent Rich are correct to say the team has not performed.

However; this does not mean Steiner or Haas themselves are at fault, as there is no word on Rich’s financial situation to Haas themselves and to have a narrow 3-race view on proceedings suggests this might have been an excuse for Rich to part-ways.

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