Renault F1 generated 12.8 million euros in profits in 2009

When Renault decided to sell 75% of its shares in the Renault F1 Team at the end of the 2009 season, its subsidiary had recorded a net profit before taxes of 12.8 million euros despite a season marked by the Singapore Crashgate and the departure of many sponsors.

Thus, the revelation of the deliberately caused accident by Nelsinho Piquet during the 2008 edition of the Singapore Grand Prix had triggered a media tidal wave, which eventually led to the downfall of the two main team leaders, Flavio Briatore and Pat Symonds.

But above all, many sponsors had decided to end their association with a team marked by the seal of cheating. At the forefront, the Dutch online bank ING had immediately ended its support even though it was the title sponsor of the team. In this capacity, it was said to have contributed more than 46 million euros per season. Similarly, Mutua Madrilena had also decided to cut its support for the French team.

However, The Independent announced today that the team’s revenue, far from decreasing, had increased significantly as it reached 186 million, a 9% rise compared to the previous season. This increase thus resulted in a net profit of over ten million euros, as opposed to a loss of over fifteen million euros the year before.

By what fortunate event could this positive result have been achieved? As is often the case when it comes to cash in Formula 1, Bernie Ecclestone is not far. According to information from two leading journalists in the field, Christian Sylt and Caroline Reid, the Formula 1 supremo has reportedly reached a new agreement with the team, doubling the income related to television rights.

This did not stop the Losange from repositioning its investment in Formula 1 by selling 75% of the team’s capital to Genii Capital before exercising in December the option it held on the balance. According to the 2010 consolidated accounts of the French manufacturer, this balance was sold at a price of five million euros.

This led to a reduction of 49 positions and overall team costs decreased by more than 11 million euros during the 2009 season, which saw the team achieve fifth place in the constructors’ standings despite the departure of Fernando Alonso.

With the participation of RacingBusiness.fr