The last fiscal year was no different to Formula E in terms of investment returns. The electric racing series posted €26.4 million loss. Even after this, the series continues to gain in terms of generating revenue, which comes out to be €133.4 million.
The uniqueness of the racing series like racing on street circuits, FanBoost, Active Mode has got global manufacturers like Mercedes, BMW, Jaguar, Nissan, Porsche, Audi and Mahindra interested in it, so much that most of the teams left their traditional pathways to take part in it.
The UK based world’s first electric racing series offers them lucrative deal while keeping the costs down as compared to other big racing championships. For example, one of the biggest spenders in the championship – Jaguar have invested a total of €36 million since its induction in the series, whereas the top Formula One teams go on to spend around €250 million per season!
The series allows fans to get involved directly through FanBoost, hence it becomes a major tool to promote their products in front of them. In S4, the series more than doubled its attendance to 476,000 and increased its television viewership from 223 million to 330 million.
Formula E CEO has big plans that would definitely impress the stakeholders bringing in a title sponsor and other associate sponsors. The biggest deal was when he finalised a 10 year contract with Saudi Arabia which reportedly fills the series’ pockets with $260 million across the period. He also mentioned that Liberty Media and Discovery Communications who own about 40% stakes are here for the long term after Mr Agag made an unsuccessful €600 million bid to take full control of the series.
(Twitter: @MohitDinodia, IG: dinodiamohit)