2019 Rich Energy Haas

Discussion in 'Formula One Discussion' started by Publius Cornelius Scipio, Nov 30, 2018.

  1. I have seen some very nice pics of the possible livery for next year's Haas, with the logo of Rich Energy.

    That looks like great news, a new sponsor, an exciting livery, all very exciting BUT that is not enough for starting a new thread...

    What I find fascinating is Rich Energy: some of you might remember that some time ago there were talks of Rich Energy buying Force India, sadly that deal never happened. I had a chance to look up some info about Rich Energy and it's a very intriguing story.

    Buying an F1 team or becoming the title sponsor of an F1 team requires a big investment, in order to make a big investment you need lot of cash and here the road gets a bit rocky for Rich Energy... Rich Energy's turnover? unknown! Yes, they never published their turnover, they published their accounts in 2017 and the turnover was unreported. However, I looked up Rich Energy in Endole (here) and it is listed as "Micro – Less than 10 employees or turnover under £2 million": yes, a company with 3 employees and a turnover of less than £2 million and £581 (and a share capital of £10,000) in the bank is going to be, or so they say, the title sponsor of Haas... In case you think that I'm making this up and that my source is inaccurate you can check Rich Energy's entry at Companies House here

    now what is my problem in all this? my problem is that I see this company, this
    (description taken from Companies House), associated with F1. There is clearly something wrong in all this story, because a company with an unknown turnover, 3 employees, a debt ratio of nearly 68% and £581 in the bank cannot sponsor an F1 team, they cannot even buy a few tickets for a go-kart race, let alone be involved with F1. So how can they get away with all this? In the past Sassetti's Andrea Mode was banned from F1 after an unpaid creditor impounded his cars, are we really to believe that Gene Haas didn't make a simple check on his new title sponsor?

    I fear that this will end in tears, or, as with the purchase of Foce India by Rich Energy, this will never happen. but at least we will have something to talk about during the winter months, before testing and racing starts again
     
    FB and RasputinLives like this.
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  3. Grizzly

    Grizzly Bear Contributor

    The whole situation is bizarre. The limited company has no assets of value so clearly the money is not coming from there. I'm not sure they have even sold any product yet beyond a couple of independent bars and restaurants. I was relieved they did not get an opportunity to meddle with Force India - team ownership would have been far more damaging to a team than losing a sponsor if they go belly up.

    William Storey is the sole director of Rich Energy Racing Limited as well, setup i believe for the failed Force India deal (their first attempt, before FI went into administration this year) although this company is yet to file any accounts.

    There is only one other director of Rich Energy Limited, who has limited voting rights. There were, however, 6 shareholders reported last year, with the company having been divided from 100 to 10,000 shares just recently. The division of the 10,000 has not been reported yet, but i assume this will be where the money will begin to appear if his 'backers' are real.

    Sometimes i think the guy simply has an incredibly bold method of promoting his fledgling company and raising awareness and interest, but that doesn't get you a black and gold branded helicopter does it!?
     
  4. I think that you nailed it
     
  5. Grizzly

    Grizzly Bear Contributor

    If that is the case, the Dietrich Mateschitz model for brand promotion may not work out so well in full public view, but if he can make a go of it, good luck to him.

    Give it a year or so and we'll find he bought the rights to an ancient recipe from a penniless man in Africa or something 10 years ago..........
     
  6. Maybe the guy has learned a few tricks from Jay Rutland, Bernie's former son in law
     
  7. Bill Boddy

    Bill Boddy Professional layabout Premium Contributor

    It could be a shell company, there just to pass money to get round taxes. Some years ago Brogan published a chart of all the companies owned by Ecclestone, it would be interesting to revisit it if it is out of copyright :D
     
  8. Brogan

    Brogan Leg end Staff Member

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    This one?

    It's almost 20 years out of date now but highlights just how complex it was.

    F1 Structure.png
     
    Bill Boddy likes this.
  9. the problem is that Bernie used to get deals done, Rich Energy so far has never achieved anything whatsoever. With all due respect to publicans and fitness instructors, Bernie would never use a shell company managed by a publican and a fitness instructor and besides why would he want to sponsor Haas? And as per the chart shown above in deals involving Bernie there was always a lot of money moving around, with Rich Energy so far there is only a lot of words.

    Besides if Bernie really wanted to put some dodgy money (and I don't think that he's got much to launder, I think that in purely legal terms he's totally legit) back into circulation he wouldn't use a company registered in England and headquartered on a residential street in East Putney (you can check it out by yourselves, the registered address is 5 Manfred Road, London, England, SW15 2RS).
     
  10. Il_leone

    Il_leone Champion Elect

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  11. Bill Boddy

    Bill Boddy Professional layabout Premium Contributor

    With the financial turnover that occurs in F1 I would have thought that a rather poor salary.
     
  12. very poor salary and not very safe job I'd say
     
  13. besides, is Rich Energy's role as title sponsor for Haas confirmed?
     
  14. Il_leone

    Il_leone Champion Elect

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    Well that is a decent wage for an accountant - it is the market rate
     
  15. one of my favourite subjects in F1 is under the spotlight once again... the sponsorship deal between Rich Energy and Haas... at first Rich Energy claimed that they had terminated their sponsorship deal with Haas then Rich Energy's mighty shareholders say that it's not true... hand on a second, what is Haas saying about this? they say that the deal is still on...

    what an amazing story, my favourite bit is in the first article that I linked, where it reads
    how intersting is that? Rich Energy has never published any meaningful financials, no one knows how many cans they sell (I have never actually seen their products on the shelves of a supermarket, maybe I'm just unlucky and West Ealing's Waitrose is being difficult with them), their shaholders are a slightly odd bunch of people with no track record of running a business, they have just lost a court case and now, a few days before they have to disclose their numbers (relevant for deciding the compensation that they owe to Whyte Bikes for copyright infringement) they unilaterally terminate their contract with Haas because of poor performance (something tells me that there is no such provision in their contract with Haas, or at least not under such terms), how convenient is that? if I was being naughty I could say that is looks just like a very poor way of trying to limit your liabilities before filing for bankruptcy ROFL

    this story is going to be be very interesting, I really look forward to know how much money Rich Energy actually paid to Haas, I wouldn't be suprised if the answer was 0 (from the first article linked
    )
     
    Ruslan likes this.
  16. Grizzly

    Grizzly Bear Contributor

    I'll just get my popcorn, settle down and watch the show :popcorn:
     
  17. F1Brits_90

    F1Brits_90 Race Winner

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    very true, as im so confused I still feel it wont happen & is more like toys being chucked out of the pram
     
  18. Grizzly

    Grizzly Bear Contributor

    Here we go then Publius...

    I'm just quoting Motorsport.com

    Mr Storey gone or do they have mole in their endless employee list?
     
  19. Grizzly

    Grizzly Bear Contributor

    Who's eaten all my ****ing popcorn?

    Own up or i'm taking to Twitter!
     
  20. Il_leone

    Il_leone Champion Elect

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    well if this is suppose to create PR.. this is very embarrassing for both team and Rich
     
  21. I think that it's especially embarassing for Haas, they clearly didn't do their homework (not, I'm not referring to last race's poor result, but to the lack of any meaningful due diligence on Rich Energy, which, if I'm not mistaken, is still operating from some remote garage in a back street in south London)
     
    Last edited: Jul 11, 2019

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