Renault F1 team made £40m loss in 2010

The Lotus Renault GP team – then still known as Renault F1 – made a £40m loss in 2010, its first year under the ownership of Genii.

The team’s accounts reveal that income fell dramatically last year by 49% from £162.0m to £82.1m, reflecting the lack of a title sponsor and the absence of a contribution from former owner Renault.

Operating costs were cut by from £148.7m to £122.1m, the team pointing out that “a significant part of this saving related to the change in the team’s driver line-up.”

In other words the team is telling us that the £26m difference reflected Fernando Alonso’s 2009 salary relative to that of Robert Kubica in 2010 (although the absence of Flavio Briatore-managed Nelson Piquet Jr may also have been a factor).

Operating losses in 2010 were £40.0m, or £34.2m after tax was taken onto account. In 2009 the team made a profit of £4.8m.

It’s well known that the team is committed to some large loans, and the accounts give some fascinating details.

Firstly, it still owes money to Renault: “The company has a loan with the Renault Group, the term of which has been extended to include repayments as follows: 2011 £6m, 2012, £6m, 2013, £8m.”

Secondly there is the arrangement with Lithuania’s AB Snoras Bank, whose logos have appeared on the car: “The company has a loan facility with AB Snoras Bank (£15m) maturing in December 2011. This loan is secured by first ranking security interest over the rights, title and interest in some of the company’s assets with an aggregate value of £24m.”

The team’s staffing levels actually rose from 497 to 514 in 2010, with an extra 12 people employed in adminstration.

4 Comments

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4 responses to “Renault F1 team made £40m loss in 2010

  1. …in other words, if GenII don’t repay 15million in December 2011 ownership of the team transfers to Snoras.

    Good digging!

  2. What does it say under ‘going concern’?

  3. Chris

    So the injection of cash from Lotus is a timely relief for them

  4. Gridlock

    What’s their entry worth, could that be part/the entirety of their Snoras securities?

    What leverage does GENII have in terms of securing a chassis naming change from the other teams?

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