10/02/2011
NEWS STORY
From reading some of Wednesday's coverage of the Williams flotation one would be forgiven for thinking that the team's founders Patrick Head and Sir Frank Williams are leading the charge into a bold new future.
"Williams, Head still committed to team" read one headline with another article quoting Head saying that "I will still be getting on my scooter to get to Paddington, and getting on the train at some ridiculous early hour of the morning. It is not like I am going to start working three days a week or anything like that." Hang on a minute! Isn't this the same person who announced his retirement just two days ago?
"I am pretty sure that I will stand down as Director of Engineering at some point in the near future, said Head on Tuesday adding that he would retire "over the next couple of years." Again, this didn't sound like Head would be leaving imminently so Pitpass' business editor Chris Sylt was surprised to read in the Williams investors' prospectus (pdf file) that "it is the intention of Mr Head...to retire in the course of 2011." Presumably this is the definitive version of what will happen as, after all, the prospectus contains data which Williams is providing to people who will (hopefully) invest in the team.
And what is Head going to do in his retirement? Again, the prospectus is the place to look as it states in black and white that "the issuer will not receive any proceeds from the offering... the selling shareholders... will receive such proceeds." Patrick Head will be providing around 65% of the total number of shares which will be floated so the majority of the proceeds invested by the man on the street will be going straight to his pocket. It remains to be seen whether the public will be prepared to supply Head's retirement fund in this way.
In contrast, the issuer, Williams Grand Prix Holdings, owns the F1 team yet will receive none of the money which is raised. It means that if fans think they will be helping the team by buying shares in it they should think twice.