F1 racing- a view from the paddock.

It's getting more bizarre by the day. We spend money like water. Meanwhile projects get cut because the government is trying to economize. But GLC bosses holding our money aren't practicing prudence.

They are urging the government to spend and spend. Consider the matter of F1 racing for example.

What's attractive about formula one? It's a massive television event, with a global audience of 600 million people for each race. The Formula One Group is the legal holder of the commercial rights. Who owns Formula One Group? Bernie Ecclestone? He owns the market. Owning a racing team is incidental.

Its high profile and popularity make it an obvious merchandising environment, which leads to very high investments from sponsors, translating into extremely high budgets for the constructors. However, mostly since 2000, due to the always increasing expenditures, several teams, including works teams from car makers and those teams with minimal support from the automotive industry, have gone bankrupt or been bought out by companies wanting to establish a team within the sport.

This means, Formula One Racing is a potential landmine. Companies, teams and constructors can get blown to pieces. Or the sponsors teaming up with constructors and teams will have to spend a lot of money to stay afloat. So I hope those companies backing our F1 teams, thinking they are seeking greatness are reading these. PETRONAS are you reading this? Proton- habib are you reading this? Tony- you can go fly.

In the first place, can Malaysia afford to have 3 F1 teams? Are we that rich or glaringly imprudent to be spending large amounts of money? For what purpose? For advertising or putting whatever product and services on a high profile visual?

In 2011, Lotus Racing Team or 1 Malaysia F1 Team or whatever will race as Team Lotus. Who is who? Proton says it owns the lotus name. Tony Fernandez says he owns the lotus brand. Before the actual races, these two business entities are fighting over who gets the right to use the Lotus name.

The Lotus Racing Team originally took a license from Group Lotus (owner of Lotus Cars) that allowed them to use the Lotus name for the 2010 season. Group Lotus, is owned by its parent company, Proton. Group Lotus then terminates the license for future seasons as a result of what it called flagrant and persistent breaches of the license by the team (headed by Fernandez).

What had Tony done?

Will Tony gets what Tony wants? How did Tony Fernandez acquire the confidence to use the name Lotus? Tony Fernandez announced that his Tune Group had acquired Team Lotus Ventures Ltd. This was a company, according to Tony, led by one David Hunt since that has full ownership of the rights of the Team Lotus brand and heritage. Because of this, Tony said he has rights to use the name Lotus and announces to the world that they would be known as Team Lotus or Lotus Racing from 2011 onwards.

Group Lotus( owned by Proton), owner of Lotus Cars launched legal action against Lotus Racing, claiming that Tony Fernandez did not have the rights to use the Lotus name because David Hunt was never in a position to sell them. Proton the parent company of Group Lotus issued a statement saying that Group Lotus owned all rights to the Lotus name in the automotive sector, including Formula One, and that Fernandez has no rights to use the brand in the 2011 season.

Group Lotus then went on to announce that it had bought a stake in Renault F1 and had agreed to become title sponsor, with the French car maker playing the role of engine supplier. The team would be known as Lotus Renault GP.

So what shall we see in 2011? We shall be seeing double- as 2 teams both carrying the name Lotus powered by Renault engines will be lining up to race. To further the confusion, Group Lotus announced that the 2011 Lotus Renault GP cars would carry a black and gold livery reminiscent of the John Player & Sons liveries previously used by Colin Chapman's Team Lotus in the 1980s, paralleling plans by Tony Fernandes to race in 2011 with a JPS-inspired livery.

You have 2 teams (both controlled by Malaysians) using the same name, powered by the same engine who will be also using the same liveries. What's happening? So before the confusion becomes out of control, in December 2010, Tony Fernandes stated that it his team would continue with their present green and yellow color scheme in 201

We see quarrel before the race has even started. Proton which hasn't done enough to market its lotus cars is thinking it can shortcut its way to eminence by sponsoring an F1 racing team. Is that stupid or what?

As a layman and as a person who gets deaf from hearing the roar of F1 engines, I am thinking, rather than spend money on sponsoring a racing team , Proton is better off spending that same amount of money into RND for lotus cars. Why go in to save Dany Bahar and Renault?

What's so special about the name Lotus? Lotus the car manufacturer? Lotus the flower? Lotus the glint in Tony Fernandez's eyes? Which Lotus?

What's in for Proton to be the Lotus-Renault team? The man in charge of the project, one Dany Bahar has said, its longer term plans is to full owner of the team. What does that mean? It means Proton, our car manufacturer whose money making capabilities are questionable under the stewardship of its current CEO is already spending millions and millions to be the title sponsor. Now, to fit into the longer term plans of this Danny Bahar, Proton will be sending many more millions to become a full owner. You can't just buy into Renault and not spend more later being owner, when your partners want to become something else.

Take a look at Lotus Cars itself. It is in the midst of a major renewal, and signaled their intent by wheeling out five concepts at the Paris Motor Show. They'll need a lot of money to realize that future range of cars. After that, will they have enough for Formula 1?

Dany Bahar must have been assured by Proton that he shall have the money he wants. He says he would not commit without backing from shareholders, banks and investors. Whose money is Proton going to spend? For Proton, its foray to become a title sponsor and becoming a full pledged owner, is a recipe for financial disaster.

We now have 3 home boys to race the F1 under their banners:- PETRONAS Mercedes GP, Lotus-Renault and Team Lotus . At least PETRONAS seems to be doing the right thing to sponsor MercGP , as there's a legend there racing for them.

But lotus? Two people are fighting for the rights over using the name. One of them owns a budget airline but probably like many of us, don't know how to change our car tyres. What's in for Tony in racing the F1? What is the strategic importance?

The cars can't be faster than Boeings or air buses? He is already well known especially after winning the bet to employ Branson as a stewardess on his plane? Branson will cross dress. That's advertising for Toy already.

The only plausible reason is that Fernandez is using the "Lotus" name to attract sponsors. He believes he'll have a lot less sponsors, just like Virgin & HRT

Where will the Malaysian government stand on this issue? The Malaysian government says it is supporting Proton-owned Lotus to return to the F1 grid. Is this a good decision? They will argue that it's in the best interest of promoting the sport in the country, to heighten the interest among kids, to make Proton cars better, to maintain the PETRONAS name in F1 etc…

Seriously, the main reason why I think some people are pushing hard to sponsor F1 racing teams is they get their hands on the kitty.

What's in the mind of Proton chief? Could he be seeing sponsoring Lotus Renault as a means to improve the marketability of the Proton brand? If this is their plan, the general idea is its going to take a lot more than a F1 team in their repertoire to improve Proton. Although Proton has owned majority of Lotus stocks for the good part of 13 years, we can't say much of their technology has been transferred to our shores.

Instead of pouring the millions into an F1 team, why not invest in improving Proton? They've been cash-strapped for the past couple years as their sales have taken a downturn due to stiff competition from the like of Perodua, Toyota, Kia, and others. Their quality isn't worth much mention either. Better spend money (our money) here than F 1.