Court orders Haas to refund ex-title sponsor Uralkali in US$13m dispute

The arbitration proceedings between the Haas Formula One team and former title sponsor Uralkali have concluded after a ruling was issued.

Confirmed:

• Haas had ‘just cause’ to terminate contract early due to the Russian invasion of Ukraine
• The panel denied Uralkali’s claims for breach of contract
• No compensation is owed to the Russian firm, but Haas must refund the majority of the US$13 million sponsorship

Context:

The tumultuous ending to this title sponsorship saw Uralkali demand a US$13 million refund and US$8.6 million in compensation. In response, Haas alleged they were owed €8 million (US$8.5 million). Ultimately, neither side were successful with their claims.

The panel ruled that the title sponsorship was active until the date of termination – 4th March 2022 – so Haas are allowed to retain a portion of the fee for the period before this. The remaining balance for the 2022 season must be returned to Uralkali, but without the compensation it sought.

Comment:

A Haas statement read: ‘The arbitration panel ruled that, in light of all the facts relating to the parties’ relationship, including Uralkali’s association with Russia, Haas “could not be expected to continue the Sponsorship Agreement under such circumstances,” and concluded that “the arbitral tribunal finds that Haas had a just cause to terminate the sponsorship agreement”.’

Coming next:

Haas will now hope this saga can finally be put behind them, which will be helped by four Grands Prix over the next five weeks. However, Haas’ legal troubles are not totally in the past, as former team principal Günther Steiner has filed court papers in the US over unpaid commission and the use of his likeness without permission.

Go deeper:

• Inside the deal: Günther Steiner breaks down Haas’ MoneyGram title sponsorship
• New Haas F1 team principal Komatsu ‘not trying to be Günther Steiner’