27/06/2024
NEWS STORY
Haas has been ordered to refund its former title sponsor Uralkali following arbitration proceedings.
Haas dropped the Russian potash giant in the wake of Russia's invasion of Ukraine in February 2022, subsequently also dropping driver Nikita Mazepin, son of the company's owner Dmitry Mazepin.
Uralkali had demanded the refund of $13m (£10.2m) in sponsorship money it had paid in advance to cover the 2022 season, together with $8.6m (£6.8m)in compensation. In a counter-claim, Haas alleged it was owed €8m (£6.7m).
The panel deemed that the title sponsorship was active until 4th March 2022 - the date of termination - and consequently Haas was allowed to keep a portion of the fee to cover that period, however, the remaining balance had to be returned to Uralkali. On the other hand the panel denied Uralkali the right to compensation.
"The tribunal found that Haas was in violation of the contract and obliged the team to pay compensation to Uralkali" said the Russian company in reaction to the ruling. "The tribunal also rejected all of the team's counterclaims toward the company".
Haas saw it differently, claiming that "the arbitration panel ruled that Haas had 'just cause' to terminate its sponsorship contract with Uralkali, and denied Uralkali's claims for breach of contract".
"Haas terminated its agreement with Uralkali on 4 March 2022, shortly after Russian military forces invaded Ukraine," it added in a statement. "The arbitration panel ruled that, in light of all the facts relating to the parties' relationship, including Uralkali's association with Russia, Haas 'could not be expected to continue the Sponsorship Agreement under such circumstances', and concluded that "the Arbitral Tribunal finds that Haas had a just cause to terminate the Sponsorship Agreement'.
"The panel emphasised that multiple other sports organizations severed their ties with Russian companies immediately after the invasion of Ukraine, and thus there was a risk 'that Haas could rapidly be the last non-Russian sport team continuing with a Russian name sponsor'.
"Accordingly, the panel ruled that the sponsorship was effectively terminated on the date of Haas's notice of termination, and ordered that Haas retain the portion of the sponsorship fee for the period before the termination, and refund any balance to Uralkali."
The American team is also involved in legal action with former team principal Gunther Steiner who is suing over unpaid commission and the use of his likeness without permission.
Haas, subsequently issued a counter claim against the Italian and the publisher of his book, Surviving to Drive, alleging breach of copyright in terms of a number of photographs, including the cover shot on the book, which is published by Ten Speed Press.