As if any more proof were needed that F1's costs are spiralling out of control, a report by Christian Sylt in the Daily Telegraph has revealed that Williams made a massive £28m loss in 2006.

This marks a dramatic turnaround from 2005, the team's last year with BMW, when it posted a £29.6m profit. Williams' revenues also slipped by more than 30% to £58.1m forcing it to spend all but £30,000 of the £20.8m it had in its bank account.

The team's finances took a blow following BMW's departure, which coincided with the loss of its main sponsor HP. With no replacements lined up, Williams spent an estimated £10m on its Cosworth engines and finished eighth in the constructors' standings.

The team took desperate measures to get through the drought, with its two directors, Frank Williams and Patrick Head, taking an £800,000 pay cut.

But thankfully things are looking up for 2007 and Williams has said that it believes it has enough resources to continue operating for the foreseeable future. This year it has signed major sponsorship deals with AT&T, Lenovo and Air Asia, which are worth an estimated £27m, according to Formula Money which monitors the sport's financial health.

Notably, Williams is not the only independent team that has been in the financial doldrums in the last few years. In 2005, Midland made also made a large loss of £19.6m.