Williams: Cost-cutting rules saved team

Williams GP were considered particularly vulnerable amid the economic downturn as they do not have a car manufacturer backing, and because several of their sponsors had been severely affected by the financial crisis.

Former backer Baugur was caught up in the collapse of Iceland's economy, and major sponsor RBS has also faced difficulties. Petrobras and Lenovo have also ended their involvement with Williams.

In an interview with the Financial Times, Williams described the budget-reducing rule changes as "a fresh start" for his team.

"[Given] the financial pressure we are under, the consequent changes to the rules to reduce the cost of racing are a major benefit," he said.

Williams conceded that his team had made a loss in recent years, but believes they can absorb this - especially given the prospect of reducing expenditures in the coming years.

"We need to make a profit," he said. "To be successful and to be certain of staying in business, we need to be successful financially too. So, we need to make a profit every year. We've lost in the last two years, or three, I think, but we have the reserves and resource to manage that."

According to another report in the Financial Times, Formula One's commercial rights holder Bernie Ecclestone advanced a total of 14.5 million GBP to Williams to keep them afloat, as part of what they will eventually receive, upon signing the new Concorde Agreement.

"It's a prepayment," Ecclestone explained. "They are entitled to some back-payments only due for payment when they sign the Concorde.

"We said to them we will pay you now."

The team's CEO Adam Parr emphasized that Williams would not have been able to continue borrowing money in order to stay afloat had budgets not come down.

"I think it would be fair to say we have reached a point where further borrowing is not acceptable to the board of this company," Parr told the FT.