By Royal Appointment:
by Mark Skewis.
Autosport, January 28, 1999 issue..

Heard the one about the Scotsman, the African and the German bank? It's not a joke. Quite the opposite, in fact: with a
potent new triumvirate behind it, the Arrows Grand Prix team just got serious. A £110 million deal uniting the team's boss, Tom Walkinshaw, Prince Malik Ado Ibrahim and Morgan Grenfell, a subsidiary of Deutsche Bank, means the team has emerged triumphantly from a winter of discontent.

A few weeks ago, the outlook was uncertain. Walkinshaw, who himself rescued the struggling operation from the brink three years ago, was seeking a partner. One potential suitor, Zakspeed, wanted the outfit relocated to Germany. It was also increasingly viewed as a stalking horse for Toyota's Formula 1 ambitions. The Malik consortium's successful bid means Arrows' future is safe. GP racing's longest losing streak could soon be in jeopardy. Malik, a member of the Nigerian royal family, has sought an opportunity in motorsport for over a year. He insists this was one just too good to miss.

"It was the biggest present just waiting for somebody to capture it", he says. "The team was perched just right. People say, 'You spent a lot of money', and we did. But we bought a lot of things: intellectual property rights, gearbox, chassis, engine, everything we need - in-house. No one other than Ferrari can boast that. The problem with buying another team is that you have to rent a powerplant, or buy one, and that's 25 millions dollars (£15 million) a year. Arrows was important because we didn't have to beg anyone for an engine".

The consortium follows hard on heels of Jordan's partnership with finance house Warburg Pincus, which is rumoured to have invested around £40 million in the team. Walkinshaw believes the sport has entered a new era in which financial institutions will increasingly recognise the potential for a TV windfall, and become the only viable alternative to a manufacturer tie-up. Given the current franchise system, which limits the F1 field to 12 teams, and Honda and Toyota about to gatecrash the party, Walkinshaw acknowledges that the sport's privateers will no longer be able to fight on their own. GP ringmaster Bernie Ecclestone's attempts to exploit his circus through a stock exchange flotation have been frustrated by an ongoing European Union investigation into TV rights. If F1 won't go to the City, then, on the evidence, the City will come to F1.

That can only be a good thing, says Malik. "The individuals in F1 right now are mostly people who started early in the sport in one way or another. The difference is that I come from a business background, and am bringing big business - the City - to a sport that needs that uplift. If Manchester United can be worth a billion dollars and not have the type of TV figures we do, all I can say is watch out"!

The plan is for the prince to front the commercial operation, with Walkinshaw retaining charge of all things technical. Malik believes the combination could recreate the structure his partner enjoyed during a spell when he took Benetton from woolly jumper manufacturer to F1 World Champion. "Myself and Morgan Grenfell can take away some of the distractions", he says. "Tom's at his best when he's focused. If he gets the scent of something, he'll go for it. If he can't do it, he won't play. That is what you want: someone you can go to and say, 'Can we get there?' and he'll say, 'We need two years, this is what I need, this is how much I need'. And he'll achieve it".

Not that Arrows have achieved much in its 21-year history. Even Walkinshaw has, with the exception of Damon Hill's near-miss in Hungary in '97, struggled to transform its fortunes since taking charge in '96. The burden of history doesn't deter the new investors. "People look at the team and say, 'Oh, it's at the bottom'. It's not", contends Malik. "We beat Ford and Peugeot last year, and came seventh in the championship. The journalists are the only ones who make it an issue. I've never had anyone else say, 'You've never won anything'. Besides which, we've only just got the team. As far as we are concerned, we're newer than British American Racing. It's like the Labour Party. That's the best way to describe it. You've got Labour, and New Labour. This is New Arrows and now we are going to try to redefine what the sport is all about".

With its financial security guaranteed, New Arrows enters the coming season in high spirits. The car, penned by technical director Mike Coughlan, will be "80% new". Its engine has been developed to produce an extra 100 horsepower in the 11 months since it first raced at Melbourne last year. "I think it will surprise a few people", suggests Walkinshaw. "It's not going to be up with Ferrari, Mercedes, or Honda, but I think it will be on par with the rest".

A man with the Midas touch, the Scot talked boldly of fighting for the championship within three seasons when he took over the team. He loves being reminded of that. "The way people like McLaren-Mercedes and Ferrari ae going about F1 is totally different now to what it was two or three years ago", he explains. "That change took everybody by surprise and everybody is struggling to catch up. They have good drivers, reliable cars and huge resources behind them, and they've had the lead time now to get those resources to deliver".

Any predictions now? He raises a wry smile. "I'm older now". Wiser, too. This time around, the goals are more realistic. The new partnership seeks to build a long-term dynasty rather than effect a quick fix. "We are working with a financial institution that wants to see goals set", says Malik. "With the City, you need to be able to present yourself in a predictable manner - they've got to know that you are going to set yourself goals and hit those targets. This is a foundation year. We see ourselves moving forward within the next two and fighting for podiums in the third".

Ultimately, though, Malik and Walkinshaw believe they can scale F1's summit. "New Arrows, new direction, new look", sums up the prince. "It will take some time for the cream to rise, but then look at a pint of Guinness. The black's at the bottom!" His voice trails off with a booming laugh at the irony of the colour reference. Notwithstanding a royal title, he's an engaging character. He's also ambitious. "We're trying to create leadership in commercial aspects", he says, "and we've got the second largest bank in the world. Show me a team with that, and I'll show you a winner".

--End of Article--

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