Why Formula One team Haas does not want to pay back payments already received from ex-sponsor Uralkali and is demanding even more money in return
The split between Haas and title sponsor Uralkali may have legal repercussions. This emerges from a letter from Haas to the ex-sponsor in which Haas rejects a refund of the payments already made for Formula 1 and in return demands even more money from Uralkali. Should the two parties fail to reach an agreement here, the case could end up in court.
It says: “Most of the sponsorship money for the 2022 season had already been transferred. And because Haas terminated the sponsorship contract before the first race of the season, it has not fulfilled its obligations to Uralkali in the 2022 season. Uralkali therefore demands the immediate transfer back of the sums Haas received. “
Why Haas does not want to pay back
Payments totalling approximately twelve million euros are in the balance. But Haas wants to continue to withhold this money
Because the contract had been duly terminated after Uralkali had breached a clause. According to it, Uralkali was not allowed to “damage the reputation or favourable image of Haas, bring the team into disrepute or ridicule”.
However, the same clause had been triggered by Uralkali boss Dmitry Masepin’s close ties to the Russian government, in addition to the sanctions imposed on Russia by the European Union as a result of the war in Ukraine.
However, when the contract with Uralkali was terminated on 5 March, the EU had not even made its sanctions official. The sanctions against father and son Masepin followed only on 9 March.
Why Haas is demanding another eight million
Haas nevertheless insists on his position and on being able to withhold the payments. “Legal scholars and case law agree that if one party terminates the contract due to a breach of contract by the other party, then there is no obligation to return the payments already received.”
Haas goes on to write: “The fact that Uralkali is demanding the return of twelve million euros is therefore unsubstantiated and is rejected.”
The US team is even demanding another eight million euros from Uralkali in return, as compensation for the profit the racing team could have made with Uralkali as a partner in the 2022 season.
First the money, then the car
Furthermore, Haas is refusing to hand over a Formula One car from Masepin from the 2021 season until the eight million euros have been received by the team. “Until payment is made, there is no reason for Haas to deliver the Formula One car.” This year’s full salary for Nikita Masepin will also be withheld, according to a source close to the team.
According to insiders, Uralkali reacted internally with “bewilderment” to the Haas letter. A public response, however, is still pending.
