Damon wasn't left with too many options anyway. While I understand he had something of a right to play hard ball with contracts as the reigning world champion, I think he priced himself out of the market with a lot of teams.
I love Hill to bits and really admire the job he did at Williams but let's be honest, a number of drivers in that era would have produced the same results.
Arrows had a works engine deal with Yamaha. Tom Wilkinshaw was running the team after having over seen Schumacher's 1994 title and had a relatively successful year with Ligier. Finally, Arrows moved into a brand new, purpose built factory at the end of 1996.
It was the best of a poor list of options and someone more willing to pay the wedge Damon thought he deserved.
The biggest knock on effect from Damon being dumped by Williams in favour of Heinz Harold Frentzen was Adrian Newey leaving for McLaren after disagreeing with Sir Frank's decision.
Interestingly, at the same time as Damon entered into negotiations with anyone who'd listen, Eddie Jordan was courting Nigel Mansell to replace Martin Brundle for 1997.
Jordan, who went for Fisichella in the end, signed Hill for 1998.