Formula E "will receive support from financial backers, which will be announced shortly," according to Sylt & Reid of MOTORSPORT-TOTAL. Formula E "is reportedly set to announce that investment funds will invest" $40M into the business. In December, the electric racing series' parent company Formula E Holdings, which is based in Hong Kong, sold a 10% stake in the sport for an estimated $21M to U.S. fund Causeway Media Partners. Formula E CEO Alejandro Agag said, "The Americans were one of a bigger round of investors. We have completed the round now and a number of investors came on board so there are others to be announced. Financial investors of the same size more or less. There are three investors. They are more funds than companies." In addition, Agag is working on a €20M ($28M) "sponsorship deal for naming rights to the Formula E trophy that also includes logo presence on all cars." Agag: "We are in talks with three different parties. They are a bank, an energy company and an online retailer." Formula E's annual operating costs will be around €50M ($69M), of which 60% is covered by sponsorship. Hospitality, merchandise and tickets "will make up about 30%, and the rest will be generated through broadcast fees" (MOTORSPORT-TOTAL, 4/7).
