Why Williams' sale marks the end of an era for Formula 1

Good news surrounding Williams has been rather hard to come by in Formula 1 over the past few years.

Since slumping to the bottom of the pecking order in 2018 and enduring its 'annus horribilis' last year, when delays in the car build left it a long way adrift from the rest of the field, Williams looked nothing like the team that once claimed five constructors' titles in six years.

But Friday brought a welcome announcement that pleased the entire F1 community. After a strategic review that considered options, including a partial or full sale of the team, it was announced that Dorilton Capital had acquired Williams Racing.

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It's the start of a new era for Williams, but the end of an important one for F1 as a whole.

Williams' status as an independent, family-run team has been something it has long been proud of. The resilience and fortitude shown by founder Sir Frank Williams throughout his life and career has been reflected in every fibre of the team's operations, even in the hardest moments faced by the group, many of which have come in the past 18 months.

Williams never wanted to lose control or step away from the ideals that he had built the team upon. BMW found that out when it tried to widen its technical partnership with the team into an acquisition, only to be told by Sir Frank where to go. The German manufacturer took its money and resources to Sauber instead.

Similar resistance has also been clear in recent years. Lawrence Stroll brought backing and sponsors to Williams when his son, Lance, was able to join the grid with the team in 2017. But he is understood to have had designs on a closer technical partnership with Mercedes, similar to the one now being enjoyed by Racing Point.

Once again, Williams was reluctant to go down such a path, focusing on designing and producing all of the team's parts in-house, and only enjoying a customer relationship with an engine manufacturer. The Strolls duly went to Racing Point instead, where the benefits of a closer technical alliance have become evident this year.

"This may be the end of an era for Williams as a family-owned team, but we know it is in good hands" Claire Williams

Keeping everything 'in the family' and retaining such independence was admirable, but, as its on-track fortunes slumped and revenues began to dip, Williams was forced to take action. After selling off its Advanced Engineering company last December and commencing a refinancing process, Williams confirmed in May it was beginning a process to find fresh investment, potentially going as far as a complete new buyer.

Deputy team principal Claire Williams said last month there had been "a number of very interesting potential investors" that were "high quality", giving the team options to explore. It led to Friday's announcement that American private investment firm Dorilton Capital had acquired Williams in a deal worth €152 million.

The sale had "unanimous support" from the company's board, including Sir Frank, who held 52% of shares. And although his name may no longer be 'above the door' officially, the announcement made clear there would be no changes to the identity of Williams itself.

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It will still be called Williams Racing. Future cars will still follow the FW naming scheme used since the early days of Frank Williams' racing escapades in the mid-1970s. And the team will remain at its Grove base in Oxfordshire. These family elements at the core of the team will remain.

Claire Williams was satisfied that Dorilton would "respect the team's legacy", adding: "This may be the end of an era for Williams as a family-owned team, but we know it is in good hands. The sale ensures the team's survival but most importantly will provide a path to success."

This deal appears to be a satisfactory resolution for Williams. The name will live on, and it now has the backing with which to gain stability heading into F1's budget cap era. The financial picture is far more appealing for smaller outfits heading into the new Concorde Agreement, allowing some to even dream of turning a profit across their F1 operations.

Dorilton is not a megabucks investment fund looking to make a quick profit and move on, either. It looks to "create value over the long-term by reinvesting cash flow and avoiding excessive leverage", and work with the existing management structures in place that have "a successful history and culture".

"We firmly believe in our companies continuing with the elements that have made them successful," the company overview states. It's a good match given the strength of the Williams brand and its significance within F1.

Dorilton says it looks to work with companies that have a net income between $4m and $25m. Last year, Williams made a loss of £10.1m on its F1 project, so while there is work to do to improve this, the brighter future laid out by the new agreements that were finalised earlier this week will have surely appealed to Dorilton.

Claire Williams said upon signing the Concorde Agreement that it marked "a major step forward, for both Formula 1 and Williams." Without such favourable terms, it is likely finding a buyer would have been a far bigger and more daunting challenge.

The founders of Dorilton also have strong connections in the business world. Chairman Matthew Savage and CEO Darren Fultz both previously held positions at Rothschild, one of the world's largest financial advisors, before leaving in 2009 to set up Dorilton. All of the signs are promising at face value.

But the deal nevertheless marks the end of an era for not just Williams, but also F1, which no longer has a family-owned team on the grid. Now every team either has manufacturers, companies, funds or consortiums backing them, perhaps taking away some of the romance surrounding dynasties in the championship.

That idea has long been outdated in F1. As romantic as the notion of 'Garagistes' like Cooper, Lotus and Williams flying the flag against the might of the manufacturers may have been in the past, that has not been relevant in F1 for a long time now.

The shifting ground combined with its on-track struggles left Williams without any real alternatives but to give up the independence it has defended for close to half a century

The downfall of F1's three new teams in 2010 proved how things had changed in F1, showing it could not be done without proper support and funding. Sauber's struggles since being bought back by Peter Sauber following BMW's exit at the end of 2009 also proved the challenge those trying to go it alone faced. Sauber too had to admit defeat in the end, selling up to Longbow Finance in 2016, the deal paving the way for a far more successful and sustainable F1 future for the Swiss outfit.

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If you want to be an independent F1 outfit, unless you have a bottomless pit of money to delve into thanks to a particularly wealthy backer, you need a business case that is sustainable and works. Haas entered F1 successfully in 2016 and changed the game with its business and operational model, but made clear it could not have considered racing any other way.

The shifting ground combined with its on-track struggles left Williams without any real alternatives but to give up the independence it has defended for close to half a century. As much as it may have taken a step forward this year, giving George Russell and Nicholas Latifi a fighting chance in the lower-midfield fight against the likes of Alfa Romeo and Haas, running a regular loss of £10m per season just wasn't sustainable.

The crucial thing was for Williams to realise this sooner rather than later, ensuring it could take action before it was too late, and that it was not in a desperate position to take the first buyer that came along. In Dorilton, it appears to have found a like-minded party that is looking at the long-term. There should be the commitment in place to help bring stability to Williams, but also encourage its growth and return to being truly competitive in F1.

We may have no more family-owned outfits in F1, but if that means we have 10 competitive and stable teams on the grid, that bit of romance is a tiny price to pay.