Team Lotus weighs 2012 name change as Concorde Agreement complicates switch
Team Lotus is considering a name change for the 2012 Formula One season, but financial implications under the Concorde Agreement may delay any decision.
Team Lotus has yet to confirm whether it will change its name for the 2012 Formula One season, as financial considerations tied to the sport’s Concorde Agreement present a significant obstacle.
The team, which has competed as Team Lotus since entering F1 in 2010, has been at the centre of a naming dispute with Group Lotus and Renault. Two weeks ago at Monza, speculation grew that Team Lotus would rebrand as Caterham for 2012, potentially allowing the Renault team to adopt the Lotus name officially. This would resolve a long-running confusion over two Lotus-branded entries in the championship.
Concorde Agreement and team payments
Changing a team’s official name in Formula One is not a simple matter of branding. Under the terms of the Concorde Agreement, which governs the commercial rights and revenue distribution in F1, a team that changes its name risks losing its entitlement to prize money and other payments accrued under its previous identity. To avoid this, the team must secure unanimous consent from all other teams, a rare outcome in the sport’s politics.
Team Lotus chief executive Riad Asmat confirmed the process is ongoing and that no final decision has been made. He indicated that the team’s shareholders are open to a change, but emphasised that the financial implications must be carefully considered before proceeding. "We are still Team Lotus as you can see but my shareholders have mentioned we are open to anything and we will see how it progresses from this point," Asmat said.
Implications for the team and F1 grid
If Team Lotus does proceed with a name change to Caterham, it would clarify the grid by ending the confusion over two teams using the Lotus name. This would also allow Renault to rebrand as Lotus, reflecting its sponsorship arrangement with Group Lotus. However, the risk to Team Lotus’s share of F1’s commercial revenues is a major sticking point, especially for a team still establishing itself in the sport.
- Team Lotus risks losing Concorde Agreement payments if it changes its name without unanimous team approval.
- Renault could officially become Lotus if Team Lotus adopts the Caterham name.
- Shareholders are open to the change, but financial security remains a concern.
The issue highlights the complexity of Formula One’s commercial arrangements, where branding, sponsorship and financial entitlements are closely linked. With the 2012 season approaching, any decision on the name change will need to balance commercial interests with the desire to resolve the naming dispute on the grid.
For further background on Lotus’s financial and driver issues, seeMoney and Driver Trouble for Lotus.
