It took 7 years for Formula E to reach financial equilibrium. This motor competition created by the FIA in 2014 has just published its latest financial report, for the 2019-2020 season, and the year would have been much less difficult than one might think. The season had started badly, reduced to 11 races, six of which took place at the beginning of last August in the German capital: Berlin. It was finally the Portuguese driver Antonio Felix Da Costa who won the title, and who will go down in history as the sixth in the discipline, by far the strangest.
With these 11 races, the financial results of the year were not going to be the most glorious for motor racing, but ultimately it was very successful in limiting the extent of the pandemic, and posted losses of only € 38,514. . The reason for this (almost) financial balance can be explained above all by the drastic reduction in costs, in particular thanks to these six races held on the Berlin circuits. The continuous presence of the “paddock” in the same place has made it possible to considerably reduce the list of expenses.
On the other side of the table, Formula E revenue has been more than correct with 143 million euros collected throughout the season. By comparison, before the pandemic, Formula E had lost 10 million euros, posting revenues to the tune of 161 million euros.
Profitability at the next corner for Formula E
Only six years after its launch, Formula E has managed to make a place for itself in the world of motorsport, yet very attached to its thermal engines. Today, electric cars compete on tracks as new as they are historic, such as the Berlin Grand Prix, which is specific to Formula E, but also streets known to all motorsport enthusiasts, such as the Monaco circuit, which hosted a round of the championship this year. An event which should considerably increase the revenues of the championship over the coming seasons.
Formula E should therefore generate record revenues in this year 2021, while a new weighty support is extending the list of receipts: ticketing. The return of the public should largely make up the deficit of last year, and thus make 2021 and the 7th season of Formula E the first to be profitable in the history of this brand new competition.
What is Formula E?
For the uninitiated, Formula E is a motor competition whose main feature is the use of 100% electric vehicles. This is still an exception in the conservative world of motorsport. While since 2014 Formula 1 have adopted hybrid engines, Formula E is a “variant” of the most famous of automobile competitions.
Very close to the world of new technologies, Formula E has been using innovative methods since its inception, whether for data recovery, which plays a crucial role in the analysis of each race, or in the race itself, which is constantly scanned by dozens of different computers.
This interest in electric cars is nothing new, as most governments around the world are pushing for an ecological transition, the electric car thus seems to be a solution – arguably imperfect – to respond to the climate emergency. The establishment of a championship like Formula E has thus enabled historic manufacturers to have an automobile competition to “test” their technical innovations, first in racing, before they end up in racing cars. Mister everyone on our roads. The idea being, in the more or less long term, to allow the car brands concerned to offer electric vehicles that are more efficient, more durable and less expensive than they are today.
This capacity for development is today the greatest asset of Formula E, which has seen historic car manufacturers join the ranks for 6 years. Among them, the most famous are: Mercedes-Benz, Nissan, Jaguar but also Porsche which made its debut during the last edition in 2020.