Lotus F1 and Group Lotus part ways

[Dare]

I'm still trying to figure out which Lotus is which




Gerard Lopez is determined to keep the Lotus name in Formula One despite Group Lotus terminating their title sponsorship deal with the F1 team.

The Lotus F1 team is owned by Genii Capital, who had a sponsorship deal in place with Group Lotus. However, with the latter having recently been sold to Malaysian automotive conglomerate DRB-Hicom, the relationship has been cancelled.

"The sponsorship agreement and the obligations of Lotus have been terminated," Genii owner Lopez told Autosport.

"There is no option from Group Lotus to buy into F1 now - that option was taken over by us. There was one, but we have taken it over now."

But just because Group Lotus are no longer involved in the team that does not mean a change of name with Lopez revealing he is keen to keep the Lotus name in Formula One.

"We are happy to carry the Lotus name as we believe it is a good name for F1," he added.

"We funded the team last year and the year before for whatever delta was missing. We would prefer to have sponsors up to the full amount - but if we have to fund it then we will fund it.

"When we changed the name from Lotus Renault to Lotus [for this year], it opened up the door for a title sponsor.

"So if you take into account the fact we signed Unilever, probably the biggest sponsorship agreement this year in F1, and we signed Microsoft, which is huge news as it is a brand that has never been in F1 before, we have a wide space for sponsorship.

"If we sign a title sponsor now, we will end up with a better cash flow situation than this team ever had before."

[cosworth151]

I wonder how Lotus's big-corporate takeover will effect it's Sports Endurance and IndyCar programs.

[John S]

I'm still trying to figure out which Lotus is which

So is everyone else Dare. 

If Group Lotus, who fought the action against Tony Fernandez' Team Lotus, is no longer involved with Lotus F1 then there are now 3 parties with possible name rights as Lotus in F1.    Oh and that's besides the Classic Team Lotus set up. 
Hey perhaps they're trying to make F1 a World series by Lotus on the cheap.  We could see Scuderia Lotus or Lotus Rosso next.   

I also wonder where this leaves one D Bahar and his expensive marketing through racing strategy at Group Lotus?

 

 

[F1fanaticBD]

God knows why there is so much fuss about the name Lotus. They are making it more confusing regarding this issue and I have a feeling with this much noise, Chapman will jump out of the grave and say give this name to me, I am keeping in my grave. This has become more than crazy....

[John S]

Far from parting the Lotus F1 team seems to be more in hock to Group Lotus owner Proton then previously, according to a group Lotus press statement and the website Pitpass.com.

Group Lotus says:-  The truth, Lotus claims, is that Proton has loaned Genii $47 million, with the Enstone based team's assets used as collateral. "In addition Proton retains the rights to purchase 10 per cent of the F1 team," said Group Lotus. "Another 10pc share option will be activated if the team default on their loan obligations with Proton." - Nextgen-auto.com, Today.

Pitpass says:-  What wasn't revealed by Lopez' comments is that the loan includes a very important clause stating that the team gives Proton "full title guarantee" to "all plant, machinery, show cars, computers, office and other equipment... and... Whiteways Technical Centre [Lotus F1's headquarters]." What this means is that if (and there is no suggestion that this will happen) the team fails to repay the loan then Proton will be entitled to take over all the property listed above which effectively constitutes the team itself. So although Lopez was keen to say that Group Lotus no longer has an option to buy 50% of Lotus F1, what wasn't revealed is that Group Lotus' owner could end up owning much more than that as a result of the loan it has given to the team.

It is unclear just how much of the team Proton would own if it defaults on the loan. However, what Proton would get is worth at least £44.9m. This comprises property valued at £12.9m, the plant (Whiteways) which is valued at £27.5m, a huge number of HP and Cisco computer equipment, laser etchers, electro microscopes, test rigs, milling machines and air compressors as well as its windtunnel and 33 show cars worth £3m. They include 29 static show cars including two in France on loan to Lotus' sponsor Total, one on loan to another Lotus sponsor TW Steel, Lopez' personal show car in Luxembourg and the race team pit stop car. There are also four running show cars - two in the 2009 livery and two in the 2010 livery. If the team fails to repay its money this would all give Proton quite a stash. - Pitpass.com, 6th April 2012.

[Scott]

Wow - seems like a pretty foolish agreement on Genii's part.   

[Jericoke]

Wow - seems like a pretty foolish agreement on Genii's part.   

Really?

Seems like a pretty good way to get out of Concorde without Bernie getting a piece on the way out.

[Alianora La Canta]

Would you believe that due to the Concorde agreement/entry being tied to the existence of the team, this agreement doesn't change the liabilies if Team Enstone leaves F1? Its owners would be jointly and severally responsible for paying the penalty fees, which would still include Proton.

[F1fanaticBD]

I have a very very bad feeling about this deal, as I have a hunch this deal will fall and much more stains on the Lotus name..

I don't like the legacy of Chapman being dragged in such a way, and hurting it as well...

[Cam]

Just thinking out loud here, how do you value a formula 1 team?

According to the Group Lotus statement if Team Lotus default their $47m loan will convert to a 10% share, which by my simple understanding values the team at $470m.

However the Pitpass statement values the team assets at £44.9m ($59m).

A business would normally be valued on the basis of its ability to generate a future profit.  An F1 team isnt really a normal business though, it gets income from Bernie TV money, sponsors and selling a few t-shirts.  Bu they dont really own the show, which is where the real money in F1 is.

My hunch is that this is essentially sponsorship money, the team has probably already won most improved of 2012 and Proton want to keep their hooks in the team just in case they become genuine contenders.  Remember Honda anyone?