F1 News: Haas Contradicts Uralkali Dispute Claims As Swiss Court Delivers Verdict

The Haas team statement contradicts that of Uralkali after an Arbitration Tribunal came to a conclusion on the ongoing dispute.

Nov 18, 2023; Las Vegas, Nevada, USA; Moneygram Haas F1 driver Nico Hulkenberg of Germany (27) drives during the Formula 1 Heineken Silver Las Vegas Grand Prix at the Las Vegas Strip Circuit. Mandatory Credit: Lucas Peltier-USA TODAY Sports / Lucas Peltier-USA TODAY Sports

The Swiss Arbitration Tribunal has reached a decision on the contentious dispute between the Haas F1 Team and its former title sponsor, Uralkali, a Russian company. The conflict arose after Haas terminated its sponsorship contract with Uralkali following Russia's military invasion of Ukraine in early 2022, citing reputational concerns.

According to Haas, the tribunal ruled in their favor, stating in a press release:

"Haas Formula LLC, the owner of the Haas F1 Team, announced the completion of its arbitration proceeding with PJSC Uralkali, its former title sponsor. The arbitration panel ruled that Haas had 'just cause' to terminate its sponsorship contract with Uralkali, and denied Uralkali’s claims for breach of contract.

"Haas terminated its agreement with Uralkali on March 4, 2022, shortly after Russian military forces invaded Ukraine. 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.'

"The panel emphasized that multiple other sports organizations severed their ties with Russian companies immediately after the invasion of Ukraine, and thus there was a risk 'that Haas could rapidly be the last non-Russian sport team continuing with a Russian name sponsor.'

"Accordingly, the panel ruled that the sponsorship was effectively terminated on the date of Haas’s notice of termination, and ordered that Haas retain the portion of the sponsorship fee for the period before the termination, and refund any balance to Uralkali."

However, Uralkali released a different update, as quoted by Planet F1:

“The tribunal found that Haas was in violation of the contract and obliged the team to pay compensation to Uralkali.

“The tribunal also rejected all of the team’s counterclaims toward the company.

“The arbitral award puts an end to the dispute between Uralkali and Haas regarding the sponsorship agreement.”

The legal dispute initially stemmed from Haas's March 4, 2022 decision to end the sponsorship after Dmitry Mazepin, associated with Uralkali, and his son Nikita, a former Haas driver, were sanctioned by the EU and UK. Although sanctions against Nikita were later lifted, Haas cited the disrepute clause in their agreement, which aimed to protect the team’s public reputation against harmful associations.

While the tribunal's ruling aims to close the chapter on this dispute, the differing public statements by Haas and Uralkali indicate potential ongoing tensions or misunderstandings about the arbitration's conclusions.