Renault May Leave F1 Without Increase In Commercial Revenue

Renault Wants To Bring Down Contract Costs And Receive More Commercial Revenue

Renault SA may leave F1 if it "doesn't get a bigger share of the sport's commercial revenue," according to Laurence Frost of BLOOMBERG NEWS. Renault COO Patrick Pelata said that to "stay in the sport, the carmaker must reduce its overall Formula One bill beyond cost cuts agreed upon among teams in December" following Honda's announced departure. Pelata said that Renault is "'seeking to bring down contract costs and receive more of the revenue' from broadcast rights, circuit fees and trackside sponsorship." Pelata said that Renault is also "seeking to reduce its [F1] salary bill." Renault in January said that it was "cutting an unspecified number" of its 850 F1 jobs. F1 Team's Association spokesperson Simone Perillo said that the organization, a "newly created group, will press its demand for a bigger slice of the sport's revenue tomorrow in Geneva." But F1 Management Chair Bernie Ecclestone "dismissed Pelata's call for an increased share of the cash." Ecclestone: "I'm surprised he would come out and say something like that. We've got an agreement with the teams until 2013 and we'll stick with that" (BLOOMBERG NEWS, 3/4). The team officially laid off 50 workers on Monday. Renault is looking for a new title sponsor after ING "announced in February it will not renew its current deal beyond the end of the upcoming season" (BANBURY GUARDIAN, 3/2).