Teleglobe confirms F1 pullout

As reported by Motorsport.com on 20 May, Teleglobe Inc. is ending its sponsorship agreement with the British American Racing Formula One team at the end of the current season. In a press release on Thursday, the telecommunications giant...

As reported by Motorsport.com on 20 May, Teleglobe Inc. is ending its sponsorship agreement with the British American Racing Formula One team at the end of the current season.

In a press release on Thursday, the telecommunications giant quoted its reasons behind the termination decision as "evolving marketing and business objectives."

However, it is believed the primary reasons for the move are based on the departure of former Teleglobe CEO, Charles Sirois, who personally supported the F1 sponsorship program at Teleglobe.

BAR's top driver in F1 is the Canadian star Jacques Villeneuve, who has won both the CART championship (in 1995) and the F1 World Championship (in 1997).

Villeneuve, who is in his second year with BAR, recently signed a contract extension with the team, ensuring that BAR, which has a Honda works engine and chassis development program, will be able to retain him through the 2003 season.

However, with Bell Canada's recent acquisition of Teleglobe, the company's new CEO, Terence Jarman, has re-evaluated programs initiated by Sirois, and Formula One was not seen as strategic to the company's plans.

In the most recent 12-month period, Teleglobe reached record revenues of C$2.8 billion (US$1.8 billion), but its earnings have dropped precipitously, transforming annul profits of C$130M (US$85M) to losses of C$90M (US$60M).

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About this article
Series Formula 1
Drivers Jacques Villeneuve
Teams British American Racing