Zoom RBS set to join ING and Credit Suisse in leaving F1

The Royal Bank of Scotland confirmed today that it is to cut sporting sponsorship drastically.

One major company to be effected is Williams, who currently enjoy significant sponsorship from the struggling financial institution.

RBS is however to honour its existing contract with the team until the end of the 2010 season but like Dutch-based banking rival ING, will not be represented in trackside advertising next year.

As the global recession depends, pressure has mounted on RBS and in a statement this evening it emerged that 'non contractual costs (F1) have already been reduced by over 50 percent and the company has made further savings by cancelling trackside advertising for 2010. In all RBS sponsorships, hospitality costs in 2009 have been reduced by around 90 percent.'

The 70 percent state-owned bank, set to confirm a massive restructuring process, is due to post its end of year financial results on Thursday and it will undoubtedly be grim reading. RBS sponsorship of the Williams team is said to be in the region of 22 million Euro per season.

Sir Frank Williams, Team Principal
“RBS has been a great partner for this team and we are pleased to have made our contribution over the past four years to developing the RBS brand internationally. Thanks to the support of RBS and our many other loyal partners, we are in a strong position to ride out the inevitable challenges of the next two years. "

"RBS is showing great responsibility to the role that we play in the British economy, supporting over 500 highly skilled technology jobs in a sector in which Britain leads the world. In the last three years, Williams has spent over £100 million with 2,700 UK suppliers and it is of course important that this business endures.”

Andrew McLaughlin, RBS Group Director, Communications
“We recognise that we are now operating in a very different economic environment and have been reviewing all of our activities since October. 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."

"Throughout our relationship, Williams have shown great understanding and innovation in driving the programme forwards. They have been very supportive in finding ways to reduce costs over the remainder of our contract. This early announcement allows Sir Frank Williams and his team to plan ahead financially.”

E.A. © CAPSIS International