Bernie pays wages to keep F1 Lotus/Renault takeover alive

[John S]

Ecclestone allegedly paid Lotus' 400 staff August wages. 

So will Lotus make the grid in Monza? ......well I hope for us the fans sake - oh and Bernie- the answers yes. 

The news, revealed by Britain's Times newspaper, comes after the Enstone team's equipment - including the black and gold cars - were prevented from leaving Spa-Francorchamps by court bailiffs after the recent Belgian grand prix.

Correspondent Kevin Eason says the risk Lotus may not be able to race at Monza this weekend remains.

"Everything is under control," said a team spokesman, as it emerged that Lotus staff are in fact making their way to the scene of the Italian grand prix near Milan.

It is also reported that the team is now imminently close to being bought by Renault, the French carmaker that is set to change direction in F1 following a tumultuous couple of seasons with current partner Red Bull.

But before that, there was the issue of unpaid staff wages, and Ecclestone is also thought to have intervened over the Charles Pic situation.

"I thought I should cover the wages of the people there to make sure they were all right and so that Lotus would at least get to Spa and, hopefully, to Italy," the F1 chief executive said.

"But they really need to make progress with Renault now to make sure everything is ok," Ecclestone told the Times.

Grandprix.com, Today.

[Alianora La Canta]

Ironically Bernie may have accidentally prolonged the whole saga. There's at least one rumour going round to the effect that Renault is waiting for Lotus to hit administration before swooping in, to make the purchase affordable enough for its board to accept...

[John S]

Ironically Bernie may have accidentally prolonged the whole saga. There's at least one rumour going round to the effect that Renault is waiting for Lotus to hit administration before swooping in, to make the purchase affordable enough for its board to accept...

I think Bernie has seen too much negative publicity for F1 around administration and teams going bust that he has decided for whatever reason to try to prevent this. Mind you there also appears to be more to consider of a domino effect putting Red Bull's present PU supply house of cards at risk, Bernie's crafty machinations are always less obvious than he wants us to believe.

I'm referring to the further complication of Merc's engine supply, if Lotus fell into administration I believe Merc would be quite within their rights to withdraw the engines from any future purchaser.

Bernie can't allow Merc to get anymore leverage if he is to get RBR into the predicted engine swap for 2016, i.e. Renault back to the Enstone team with RBR taking over their Merc allocation.

Anyway Bernie has always worked from the premise that if you look as though you can afford it you should pay top dollar - unless he's buying something himself of course. 

P.S. Another complicating factor, Pastor's sponsorship, has emerged about the Lotus cashflow crisis - again administration wouldn't help:-
http://www.gpwizard.co.uk/forum/index.php/topic,19558.msg118523.html#msg118523

[Jericoke]

While I realize that this is all part of Bernie's game within a game, good on Eccelstone for paying these people who have dedicated their lives, and their families' livelihood to Formula One.

The people that make the sport work don't deserve to be pawns, and it's nice to see Bernie take care of them.

[Monty]

John's points are spot on. I do not think administration would make Lotus a better or cheaper purchase.
'Going-concerns' are often sold for £1 (or $1 or €1 whatever is appropriate). Obviously, as a going-concern the debts are purchased as well. However, if Lotus went into administration with massive debts there would be no goodwill and all of the suppliers would walk. I can't see how that would help the buyer.

[lkjohnson1950]

Lotus was staying home from Italy, That's why he paid them. He needs them on the grid. And 2 to 1 it was a loan. Bernie has neither an altruistic or generous bone in his body.

[Scott]

Lotus was staying home from Italy, That's why he paid them. He needs them on the grid. And 2 to 1 it was a loan. Bernie has neither an altruistic or generous bone in his body.

 

[Alianora La Canta]

Ironically Bernie may have accidentally prolonged the whole saga. There's at least one rumour going round to the effect that Renault is waiting for Lotus to hit administration before swooping in, to make the purchase affordable enough for its board to accept...

I think Bernie has seen too much negative publicity for F1 around administration and teams going bust that he has decided for whatever reason to try to prevent this.

My point was not about Bernie's intentions (which for appear to be good), but that he may have accidentally turned a "brief admin followed by resurgence" story to a "hobble along for a month and then go bust" story. I am hopeful that recent signs indicate Bernie may have actually found a third option involving neither administration nor going bust.