Formula E Commits To FIA Payments, Providing Boost To Body's Bottom Line
Formula E, the world's "first fully electric racing series, has committed to paying" at least $24.3M to the FIA over the next 10 years, according to Christian Sylt of AUTOWEEK. The series' launch this September "comes at just the right time for the FIA," as the governing body's latest accounts "show that it made a net loss of $3.4 million on total revenue of $81.5 million" in '12. Formula E's payment includes a $4.2M "share of the proceeds from an estimated $21 million investment in December in Formula E's Hong Kong-based parent company Formula E Holdings (FEH)." The investment "was made by Causeway Media Partners," an investment fund founded by venture capitalist Bob Higgins along with Celtics Managing Partner & CEO Wyc Grousbeck and Celtics investor Mark Wan. The group joins Spanish businessman Enrique Banuelos and Formula E CEO Alejandro Agag, the "majority shareholders of FEH." A summary of a '12 agreement between the FIA and Formula E also "reveals that the FIA will receive fees of $67,000 from each of the 10 teams and $135,000 per race which 'should generate an additional revenue of $2 million for the FIA in 2014'" (AUTOWEEK.com, 2/3).
THE HEAT IS ON: In Miami, Douglas Hanks reported Formula E is "pursuing Miami for an updated version of the Grand Prix races that used to roar through downtown." FEH is "rolling out a series of races for the Formula E’s debut season, and Miami has been tentatively slated for March 14, 2015." However, FEH first "must win city approval for the event" (MIAMIHERALD.com, 2/3).