Rival F1 teams fight over Jenson Button as signing announcement triggers contract dispute

Twenty-two years ago today, Williams announced they had signed Jenson Button on a two-year deal for the 2005 and 2006 seasons, sparking one of the most dramatic contract disputes in modern F1 history.

On 5 August 2004, Williams went public with the news, believing Button was a free agent after BAR-Honda had failed to exercise an option to retain him. Sir Frank Williams was bullish about the move.

"The first clear and unequivocal position is that we hold a contract with Jenson," Williams said. "It appears BAR contest this, however we are of the firm opinion that BAR lost the option to retain Jenson and I have no doubt he will be at Williams in 2005."

BAR, led by team principal Dave Richards, immediately challenged the announcement, insisting they had already exercised their contractual option on Button for the following season. The matter was referred to the Formula One Contract Recognition Board.

On 20 October 2004, the CRB ruled in BAR's favour, determining that Button's existing contract with the team was the only valid agreement for 2005. He would not be heading to Williams.

Button accepted the verdict. "Naturally I am disappointed by the ruling, but as a matter of principle, I firmly believe in standing by the decision the CRB have reached today," he said. "BAR have been extremely professional at the race track during this process."

Williams, too, was left to reflect on what might have been. "Naturally we are disappointed with the CRB's conclusion," Sir Frank said.

"We took the view that Jenson was a driver worth challenging for, and based on strong legal advice we have no regrets about making a bid for his services."

But the saga did not end there. Williams maintained they still held a valid contract with Button for 2006. Button, however, no longer wanted to leave BAR-Honda.

Reports suggest he paid in the region of £18 million to buy himself out of the Williams deal, though the exact figure was never officially confirmed.

"I'm ecstatic that we have sorted the situation between Frank and me," Button said at the time. "It was not a nice situation to be in, but I'd like to say thank you to him because we were able to stop it before it went any further."

It remains one of the most expensive contract escapades in F1 history, and its ruling changed the course of Button's career.

He went on to secure a maiden victory at the Hungarian Grand Prix in 2006 with what was then the Honda F1 team.

The same operation went on to become Brawn GP three years later when the Japanese marque pulled out of the series, with Button winning the 2009 F1 drivers' championship in a fairytale campaign.