Lotus F1 Team records £56m loss

Lotus F1 Team records £56m loss

0654CB7D8742Lotus F1 Team has recorded a £56m loss in the past year, increasing the pressure on owners Genii Capital and the team as a whole.

The loss is the biggest in Formula One history, dwarfing that of Marussia by £13m, and it comes at a crucial time for the team as they find themselves amidst a fight for both championships.

According to The Telegraph, the loss was made due to Lotus Cars’ withdrawal of sponsorship, although the team still runs with the name on its car. In the year ending December 31st 2012, Lotus F1 Team saw a fall in revenue of 19.8%, causing its net loss to widen by £35.9m. This was also caused by the arrival of twenty new staff at Enstone, whilst Kimi Raikkonen’s driver fee saw costs rise by 9.1%.

Earlier this year, team owner Gerard Lopez signalled that he was open to investors after accepting £1m for a 2% stake in the team from a British tycoon. Genii may be keen on attracting further investment to aid the financial state of the team, but it is clear that their on-track success does not reflect the stability of the team off-track.

Images courtesy of Octane Photographic.

Luke Smith

Luke Smith

Luke Smith is the Editor-in-Chief and Founder of Richland F1. Having started the website in March 2012, he has gone on to become one of the youngest members of the Formula 1 paddock after joining American broadcaster NBC Sports at the beginning of the 2013 season. Luke now works as the network's lead F1 writer, supporting the TV coverage on nbcsports.com. Luke's work has also been featured on NBC News, Yahoo! Sports, Driven Magazine and the Bahrain Mirror, and he has also appeared on CNBC's TV series "One Second in F1 Racing".