The future of Formula One racing team Jordan’s sponsorship deal with Damovo is in doubt following the departure of the telecoms company’s chief executive.
Industry sources claim Damovo is in negotiations to withdraw from the deal, which was originally brokered by chief executive Pearse Flynn, who left the company last month.
A Damovo spokeswoman confirms that the company’s lawyers are looking at the contract with Jordan. A Jordan spokeswomen says the two parties are in talks but denies Damovo has made a decision to end its sponsorship of the team. She says: “We have a three-year deal that has various options, but as far as we are concerned the contract is not terminated.”
But one industry source says Damovo is seeking to exit from the contract at the end of the season, or else withdraw its involvement to just hospitality. He says: “Damovo is looking for exit clauses in the Jordan deal. It definitely doesn’t want to be on the car anymore.”
He adds that even the Damovo website no longer carries details about the Jordan sponsorship deal, though it does promote its sponsorship of the British Masters golf tour.
The Jordan team has raced this season without a title sponsor after last season’s sponsor DHL pulled out after one year. The team has also been undermined by a failed lawsuit against Vodafone, which led to widespread criticism of owner Eddie Jordan.