Ecclestone deal drove Renault into the black
Monday 07 March 2011
Revenues at Renault's Formula One team accelerated by 9 per cent to a record £161m in 2009, despite the squad suffering a series of setbacks during the year, according to recently filed accounts.
The boost was driven by a new 2009 deal with the F1 chief Bernie Ecclestone, which doubled the team's prize money. The catalyst for the Renault team's woes was its boss, Flavio Briatore, being accused of fixing the result of the 2008 Singapore Grand Prix by demanding that one of his drivers crash.
Mr Briatore went on to resign in September 2009. He was followed by several sponsors, including the Spanish insurer Mutua Madrilena and ING, the banking group, which alone was believed to be paying the team £40m every year.
To distance itself from F1, Renault sold a 75 per cent stake in its team to the Luxembourg-based private equity firm Genii in February last year.
Genii bought the remaining shares in December but the team still carries the Renault name as a change would require consent from its 11 rivals in F1.
Fuelled by the additional income from Mr Ecclestone, the team raced into the black despite the loss of sponsorship, finishing the tumultuous year with a pre-tax profit of £11.1m, compared with a £12.6m loss the year before.
The introduction of a cost reduction plan led to the axing of 49 jobs, with the majority coming from the engineering department, and the team's total costs reversed by £10m.
The profits were ploughed back into the team and it made £6.5m of capital investments during the year, with the bulk being driven into new machinery.
However, that did not give the team the boost it was looking for – it finished a dismal eighth in the 2009 standings, down four places. In 2010, the team attracted new sponsors, including Hewlett-Packard and Lada, to plug some of the gap left by ING and it rose to fifth in the standings.
Despite the recovery, the team remains a far cry from its heyday, when it won two championships under Renault's sole ownership. But further improvement is on the agenda for 2011, after the Lotus car company become the team's title sponsor at an estimated annual cost of £25m.
Actress sees off speculation about her appearance in an amazing way
Review: Despite an uphill climb to see Jake Bugg in action, his performance is notably flat
Powerful images of strays taken moments before being put down
- 1 Renee Zellweger on plastic surgery claims: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
- 2 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 3 Disney announces new female-led film Moana
- 4 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Australian jihadist Abdullah Elmir vows Isis will fight 'until black flag is on the top of Buckingham Palace'
Renee Zellweger on plastic surgery claims: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
Of course, teenage girls need role models – but not like beauty vlogger Zoella
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...