Liberty Global is about to take control of an FIA-sanctioned championship in its 10th season, following the completion of an acquisition. The telecommunications company previously owned approximately 35% of the shares, but no financial details have been disclosed.
While Formula E will move under the control of Liberty Global, Liberty Media, chaired by American billionaire John Malone, holds the commercial rights to the larger and older Formula 1 business. In April, Liberty Media also announced its intention to acquire the MotoGP world championship, pending antitrust approval.
Liberty Global CEO Mike Fries expressed confidence that common ownership by an individual will not create issues, as the two companies are separate entities. He emphasized the importance of this moment for Formula E, stating that the series requires both capital and conviction, which Liberty Global intends to provide.
Fries highlighted the impressive growth of Formula E, including the performance of the cars, the quality of the teams, the global calendar, and the growing fan base. He acknowledged that capital and conviction are essential to leverage these positive factors.
Liberty Global plans to continue funding the series until it reaches the breakeven point, a milestone that Fries believes is close. Formula E recently announced a calendar of 17 races in 11 locations, with double rounds in Shanghai, Tokyo, Berlin, London, Monaco, and Saudi Arabia. The series claims to have an audience of nearly 400 million worldwide.
The CEO of the series, Jeff Dodds, revealed that the remaining 35% of the shares are owned by various minority shareholders, including the Public Investment Fund (PIF) of Saudi Arabia, with about 5%, and the founder Alejandro Agag. Dodds expressed optimism about the rapid growth of Formula E and suggested that it could eventually challenge Formula 1 as the premier championship, citing technological advancements as the basis for his confidence.
Dodds highlighted the performance of the upcoming Gen 3 evo car, which is expected to reach 100 km/h approximately 30% faster than the current Formula 1 car. He also mentioned the future launch of the Gen 4 car, which will have even more speed and endurance. Dodds stated that the performance of Formula E will soon be on par with Formula 1.
In addition, the cost cap of Formula E of 13 million euros per team sharply contrasts with the $140 million of Formula 1.
