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Lotus F1 post biggest loss in F1 history, mainly thanks to Group Lotus - Motorsport & Trackdays - The Lotus Forums Jump to content


Lotus F1 post biggest loss in F1 history, mainly thanks to Group Lotus


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http://www.pitpass.com/49161-Lotus-burns-up-biggest-loss-of-any-team-in-F1-history

Not a massive surprise, I'm amazed they've let Group Lotus get away with free F1 sponsorship even this long. Its a shame Group Lotus haven't made more of it, make hay while the sun shines etc.

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

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Must admit, I've never truly understood how F1 can make money?

All we know is that when they stop making this, we will be properly, properly sad.Jeremy Clarkson on the Esprit.

Opinions are like armpits. Everyone has them, some just stink more than others.

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F1 has always been a black hole for money. Any notional "profit" is only the result of clever accountants...unless that's an oxymoron! I read the report and one sentence stood out...

 

"Perhaps surprisingly, despite having £1.7m in the bank at the end of 2012, Lotus only earned £756 in interest during the year – it goes to show how low interest rates are at the moment."

 

I know interest rates are low....but to make £756 on £1.7 million??? I return to my "oxymoron" theory....

Scientists investigate that which already is; Engineers create that which has never been." - Albert Einstein

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Well not quite. the Genii management thought they could be more clever than Renault by leveraging their business connections to funnel money into the team. They failed quickly at doing just that. DB entered the scene and said let us become your title sponsor for $18M a year. To which Genii said hell yeah!  But then TF said not so fast and it all went downhill, behind closed doors, from that point on.  The $18M a year deal became a licensing deal with no money coming from Lotus but the possibility for Genii to properly rebrand and use the Lotus roundel and moniker on all communications and contracts and all the while keeping its "FOM Renault" money. At that point Genii was relieved to even have a name...

 

Let's be clear here, it was them enjoying the better part of the deal. I know many do think Lotus got the most out of  the deal but Lotus cannot activate the licencing deal in any meaningful way as the current CEO seems unable to get any marketing done without a say from the higher ups in KL. The Enstone team has a name strong enough to communicate with which would not have been the case had the team had to rebrand Genii Racing. Genii has been able to get a few sponsors to come around based on the moniker, it's a huge asset to have but not enough to get a title sponsorship. They've been without one since the Lotus money vanished.

 

They used to be a factory outfit but for the last few seasons they've had to pay for their engine. And the situation is unlikely to get any better anytime soon. They have no engine deal for next year. They are unlikely to stay with Renault as the new engine deal is said to cost some $24M. And Renault made it public that they were ok to have 4 teams but willing to just have 3 (Redbull, Caterham ... and newly announced Toro Roso)  

 

Their Total sponsorship is tied with a french driver hence the decision to stick with Grosjean. So ousting him is pretty much a guarantee that they'll get less money from the french petco.

The Burn sponsorship is not the big deal every body made it out to be at the beginning.

The Honeywell deal collapsed and the only money that got in lately is  from a share of the team sold to a British real estate tycoon for a mere $1.4M.  

 

So the $84M hole in the bank account is not really surprising but for once it's not DB or not entirely DB.

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  • 2 weeks later...

Another twist on the story - 

 

http://www.independent.co.uk/news/business/news/lotus-ready-for-pole-position-8650591.html

 

Much as I hate to say it, they may not be able to hold on to Raikonnen for next year if the Red Bull rumours are to be believed. The upside is of course the team's finances might improve....

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  • 2 weeks later...

 

Lotus F1 Team has new part-owners as of today, with Infinity Racing Partners Limited (Infinity Racing) acquiring a 35% minority stake in the team. Infinity Racing joins Genii Capital, who retain a controlling stake in the team, with Gerard Lopez continuing as Chairman.

 

Infinity Racing is an investment consortium whose special purpose vehicle is comprised of private investors that include an American hedge fund manager, an Abu Dhabi-based multinational business group and royal family interests of a major oil producing nation.

 

Lotus F1 Team was previously 100% owned by an investment vehicle of Genii Capital – a global investment management and financial advisory firm headquartered in Luxembourg – which retains a controlling stake of 65% in the team.

 

Gerard Lopez, co-founder of Genii Capital, will remain Chairman of Lotus F1 Team. Eric Lux, CEO of Genii Capital, will continue his role on the team’s Board of Directors.

 

Gerard Lopez, Chairman, Lotus F1 Team:

 

“Infinity Racing’s principals have exceptional expertise and a proven strong track record in developing and delivering high quality technologies. This partnership will enable us to increase Lotus F1 Team’s competitive advantage related to KERS technology as it becomes more central to Formula 1’s push for environmentally sound racing, while also making Lotus F1 Team more marketable as a brand, opening up additional major sponsorship opportunities.”

 

Mansoor Ijaz, Chairman and Suhail Al Dhaheri, Vice Chairman, Infinity Racing:

 

“Gerard Lopez, Eric Lux and the entire Genii Capital team are building Lotus F1 Team to make it a serious competitor at every race and a winner on a par with the top racing teams in Formula 1. The recent developments at Enstone and results of the Team’s high-quality drivers are testament to this. Patrick Louis, Chief Executive, and Eric Boullier, Team Principal, are continuing the time-honoured traditions of Lotus F1 Team and have re-established the Team as a competitive force in Formula 1. We are honoured to be part of the Team’s forward march to the No.1 ranking and proud of the team spirit, down-to-earth nature and performance-oriented results that characterise the experts at Enstone, who endeavour to make Lotus F1 Team a title challenger in Formula 1 today.”

 

Eric Lux, CEO, Genii Capital:

 

“Genii Capital is delighted to announce this partnership between Infinity Racing and Lotus F1 Team as we continue to grow and compete for podium places. Since Genii Capital took over control in December 2009, we have been focused on growing the value of the organisation and developing the infrastructure at its Enstone headquarters. As Lotus F1 Team results have continued to improve every year, we have been waiting for the right investor who will help make the jump to the top spot in the Constructors’ Championship. In Infinity Racing, we have found a partner with the right connections in addition to technological expertise and a global reach in major markets with key sponsors to achieve this goal. We look forward to working with Infinity Racing as we continue on this exciting journey.”

 

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

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Whilst I agree with Roger that once again Mr Bahar was shooting above his funding and should shoulder some of the blame, I find my attitude has softened towards the old Renault team in the last year. I really...really like Raikkonen and his classic one liners plus he is one of if not the best drivers out there....and right now we have a huge number of superb drivers.

 

I wish the team well and hope they manage to keep at the top, even though they may have to cost cut.

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The team's press release is 2 posts up...

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

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:thumbsup:

 

Coffee is your friend :D

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

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They sold 35% of the team... to a consortium called Infinity Racing... The consortium behind this is not too bright using "that" brand in F1 right now is obviously not possible... Not that I think the team will be rebranded but still.  I wonder which persian gulf country invested in the team.

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  • 3 months later...

:thumbsup:

 

Coffee is your friend :D

I thought it was tea and 5 hr. Energy for you, Bibs. :)

In my opinion, if Lotus wanted to get back into open-wheel racing and F1 doesn't pan out; then maybe they should talk to the Izod Indycar conglomerate and ask them to allow new versions of the Gurney AAR Eagle chassis or a new Swift chassis back into the IRL. Then they could build a new supercharged V6 engine (or tune up the present supercharged V6 for up to 800 bhp) and combine it with these chassis and create an Eagle/Lotus team and a Swift/Lotus team.

 

But that is just me.

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I think there's more chance Lotus will start a space program before they go anywhere near Indycar again!

88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

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I think there's more chance Lotus will start a space program before they go anywhere near Indycar again!

Oh yeah..  I spoke to some one related to indy and their sentiment was never again...

 

There isn't much you can do with that situation anymore.  I guess they feel that it's down to simple business in KL and no one really knows what that eventually means yet

If the only thing constant is change, then why do we resist change the most?

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88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

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