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Variety article: Rokit Leaves Trail of Millions in Deserted Deals, Lawsuits and Bankruptcies [split]


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#101 george1981

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Posted 05 April 2023 - 08:08

No team can do more than guess their performance. It would be like a gambler saying he wanted to sue because a horse didnt win. Laughable.


The point is though Rokit extended the deal during the 2019 season so they clearly weren’t that unhappy about the performance during 2019. If the 2019 performance didn’t reach the expectations Rokit had before the season started they wouldn’t have extended.

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#102 baddog

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Posted 05 April 2023 - 09:09

Actually, I remember several sponsor contracts being mentioned in the media that specified a minimum number of points scored by the team during a season. I believe those were about Ligier and Minardi. That was in the 1990s when I read Autosport. 

 

So a sponsor demanding a certain level of competitiveness is not unheard of and would therefore suggest teams "promise" a certain performance level even if we know they can only guess.....

 

Yes a contract that stated, for instance, varying payments or extension terms dependent on results would be sensible enough.



#103 george1981

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Posted 05 April 2023 - 09:19

Yes a contract that stated, for instance, varying payments or extension terms dependent on results would be sensible enough.

 

I think it's very standard and especially used to include a top 4 finish clause. I'm fairly sure it was reported in 1998 that Benetton and in 1999 Williams were able to pursuade their sponsors that they should ignore the results of Jordan and Stewart respectively when paying their sponsorship fees due to what were perceived to be freak results that affected the WCC in those years. Jordan's 1-2 at Spa in 1998 and Stewart's 1-3 at the Nurburgring, these two races gave the winnings teams almost half their points in those seasons and the argument was they didn'r reflect the true pace of the cars so the sponsors should pay more than was agreed in the contract. 



#104 Sterzo

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Posted 05 April 2023 - 10:52

Yes a contract that stated, for instance, varying payments or extension terms dependent on results would be sensible enough.

And would be so clear and specific that no dispute would be possible. Which makes me wonder about the current situation...

 

It's also conceivable that the reporting is based on a misunderstanding. It's common for "performance" to mean doing things promised in a contract, rather than to have the racing-specific meaning of performance on track. Maybe, just maybe, there are some other aspects of the contract which are at the root of this dispute.



#105 Beri

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Posted 05 April 2023 - 13:33

From the sidelines it looks a lot like:

 

Guy: "Hey Buddy, we think we got a better car next year. Wanna sponsor us?"
Buddy: "Well ok Guy, but how good is it?"
Guy: "It will be better than last years."
Buddy: "Ok so it is good? Then I'll sponsor you!"

 
Pandemic occurs and racing season is slashed in half
 

Buddy: "We still want to be on your car, but we will pay half of our agreed amount as there are half the races being done."
Guy: "Thats not how we agreed upon it, Buddy."
Buddy: "Well guy, take it or leave it."

 
Contract ripped up.
 
 
c96.jpg



#106 onemoresolo

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Posted 05 April 2023 - 13:40

From the sidelines it looks a lot like:

 

 
Pandemic occurs and racing season is slashed in half
 

 
Contract ripped up.
 
 

 

Basically yep, but - the season wasn't slashed in half. It was reduced from 22 races to 17. Williams were surely right to refuse given that at the time it wasn't clear how many races there would be. In the end, 17 is more than enough to be considered a full season. I strongly think Rokit made an ultimatum hoping Williams would take it, but Williams called their bluff. 



#107 ARTGP

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Posted 05 April 2023 - 14:28

Is it a coincidence that Rokit is asking for an entire season's budget more or less? 


Edited by ARTGP, 05 April 2023 - 14:28.


#108 Rinehart

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Posted 05 April 2023 - 16:28

I think it is understandable, that Rokit did not want to pay the same amount for 50% of the races as for the expected 100% of the races.

 

Much more dangerous is that Rokit says Williams made guarantees about the performance of the car. If Rokit can prove Williams made such statement in order to get sponsorship, then Williams could be in a lot of trouble.

 

How could Williams "guarantee" performance without knowing the performance of the other teams. Thats what performance clauses are for, the presence of which, Kendrick has failed to mention. 

Read the linked article at the start of this topic. Rokit have a history of defaulting for spurious reasons and countering with bizarre claims of their own. They are nothing more than a nonsense factory. Just an even more ludicrous Rich Energy.

I always enjoy reading these topics but just cannot understand how anyone takes them seriously.