The team was founded in Milton Keynes in November 1977 by five individuals who had left the Shadow Racing team: Italian businessman Franco Ambrosio, Alan Rees, former racing driver Jackie Oliver, Dave Wass, and designer Tony Southgate. The team's name derived from the initials of their surnames. Arrows entered their first race — the 1978 Brazilian Grand Prix — within just three months of being founded.
Their first car, the FA1, was named using the initials of title sponsor Franco Ambrosio. Shadow immediately sued for copyright infringement, and the London High Court ruled that the FA1 was a direct copy of the Shadow DN9. Arrows designed an entirely new car — the A1 — in 52 days, unveiling it the day after the court ban. Riccardo Patrese scored points in Arrows' third race at the Long Beach Grand Prix, and the team posted a second place in Sweden behind Niki Lauda.
Patrese gave the team their only Formula One pole position at Long Beach in 1981, leading for 33 laps before mechanical failure. The mid-1980s brought BMW turbo power and Barclay sponsorship, with the team finishing as high as ninth in the Constructors' Championship in 1984 and eighth in 1985.
Arrows' best competitive spell came in 1987 and 1988 under the direction of Ross Brawn, who designed the A10 and A11. The Megatron-badged BMW turbo engines — funded through main sponsor USF&G — gave drivers Eddie Cheever and Derek Warwick regular points finishes. A persistent pop-off valve problem cut power below the permitted limit throughout both seasons; the fix was not found until just before the 1988 Italian Grand Prix. The team finished seventh in the Constructors' Championship in 1987 and fifth in 1988. Cheever took a podium at the 1989 United States Grand Prix in Phoenix.
Japanese businessman Wataru Ohashi invested in 1990 and the team was formally renamed Footwork in 1991. A high-profile Porsche V12 engine deal collapsed when the unit proved overweight and underpowered, forcing a rapid switch back to Ford V8 power. The 1994 season was the most competitive in the Footwork era, with several points finishes and Gianni Morbidelli scoring a podium in the final race of 1995 in Australia.
Tom Walkinshaw acquired 51 per cent of the team in March 1996 and relocated operations to Leafield. For 1997 he signed world champion Damon Hill alongside Pedro Diniz and hired John Barnard as designer, with Bridgestone tyres supplied exclusively.
At the 1997 Hungarian Grand Prix, Hill passed Michael Schumacher from third on the grid and led with apparent ease. With two laps remaining, a rubber seal in the hydraulic system failed. Hill was overtaken on the final lap and finished second — the closest the team ever came to winning a Grand Prix.
Arrows built their own V10 engine for 1998, the T2-F1, after buying Brian Hart's preparation company. The programme was difficult, though both cars finished fourth and sixth at Monaco and Pedro Diniz scored a fifth in Belgium. The team finished seventh in the Constructors' Championship.
The final seasons were marked by litigation. Jos Verstappen successfully sued for breach of contract after being dropped for 2002. A defeat against Diniz over unpaid obligations, and an unpaid Frentzen, compounded the team's financial difficulties. Mounting debts to Cosworth and a failure of sponsorship saw Arrows withdraw from the 2002 season mid-year, with their drivers deliberately failing to qualify at the French Grand Prix. The team went into liquidation; the FIA rejected their entry for 2003. The closure simultaneously brought down Tom Walkinshaw Racing.
In 382 Formula One starts Arrows never won a race, collecting nine podium finishes including five second places. Their A23 chassis and full intellectual property were acquired by Minardi, whose work on the design fed into the Super Aguri team that raced from 2006 to 2008.
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