New Financial Regulations in Formula E Will Underpin Long Term Development of the Sport
- New financial regulations approved today by the FIA World Motor Sport Council come into force on 1 October 2022 for Season 9 of the ABB FIA Formula E World Championship
- Two sets of financial regulations to be introduced by the FIA to monitor and control spending levels of competitors: one for Teams and one for Manufacturers
- New regulatory framework will enhance long term financial sustainability of Formula E, supporting retention of current participants and attracting investment in the Championship from new manufacturers, teams, investors and commercial partners
- Competitive balance, sporting integrity and the advancement of electric vehicle technology are complemented and enhanced by the new financial regulations
LONDON, UK. Wednesday 15 December 2021 – Formula E and the Fédération Internationale de l’Automobile (FIA) announced the introduction of new financial regulations for the ABB FIA Formula E World Championship after they were approved at today’s meeting of the FIA World Motor Sport Council.
The new financial regulations will come into force from 1 October next year and will align with the Championship’s technical and sporting regulations. Two sets of financial regulations will be introduced, one for Formula E Teams and another for Formula E Manufacturers.
Teams:
- The Team financial regulations are comprehensive with limited exclusions, mainly for costs clearly linked to the commercial growth of the Championship
- The spending level for Seasons 9 and 10 will be set at €13 million per season with certain transitional exclusions to address existing contractual commitments
- From Season 11 onwards, the spending level will increase to €15 million per season inclusive of driver costs and other costs associated with the second phase of the Gen3 car, facilitating continued investment in talent and development
Manufacturers:
- A separate set of financial regulations will govern manufacturer investment in research and development related to powertrain development
- Manufacturers will operate within a spending level of €25 million over two consecutive seasons starting from Season 9
- Includes costs for research & development, manufacturing activities and ongoing mandatory services to support Formula E teams
Jamie Reigle, CEO, Formula E, said: “Over the past 18 months, we have worked closely with the FIA and all participants in the ABB FIA Formula E World Championship to create a regulatory framework that will underpin the long-term financial sustainability for all participants in Formula E.
“When combined with recent enhancements to our technical regulations and sporting formats, this financial system will strengthen Formula E’s value proposition. In partnership with the FIA, we have created a framework which places long-term financial success at the core of the Championship which will support our existing teams and manufacturers while attracting new competitors and investment.
“The financial regulations are designed to complement our ambitious technical roadmap and enable manufacturers in Formula E to showcase the potential for electric vehicles in the most demanding racing conditions: the ABB FIA Formula E World Championship. The shift to electric vehicles is accelerating, Gen3 will set the standard for performance and efficiency. There is no turning back.”
Frédéric Bertrand, Formula E & Innovative Sport Activities Department Director, FIA, said: “I must commend the joint efforts of the FIA and Formula E’s financial teams, who have been working on these regulations for some months now, in close collaboration with the Championship’s teams and manufacturers. The outcome meets all expectations and – on the eve of the introduction of the Gen3 car – will grant all stakeholders a clear vision of where the Championship is headed, enabling them to plan for the future with confidence.
“The adoption of such measures enables the ABB FIA Formula E World Championship to offer manufacturers the perfect platform for showcasing their technologies at managed and controlled cost levels while increasing the equitability among teams competing at the pinnacle of electric racing.”
The regulations will be enforced via the FIA’s Cost Cap Administration who will monitor compliance, investigate instances of suspected non-compliance and update regulatory documentation.
In October and November 2022, Formula E Teams will be able to voluntarily submit Season 8 documentation to acclimatise to the new regulations.
About the ABB FIA Formula E World Championship
As the world’s only all-electric FIA World Championship and the only sport certified net zero carbon since inception, the ABB FIA Formula E World Championship brings dramatic racing to the heart of some of the world’s most iconic cities providing an elite motorsport platform for the world’s leading automotive manufacturers to accelerate electric vehicle innovation.
The Formula E network of teams, manufacturers, partners, broadcasters, and host cities are united by a passion for the sport and belief in its potential to accelerate sustainable human progress and create a better future for people and planet. www.FIAFormulaE.com
About ABB
ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energises the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries. www.abb.com
Sources: Formula E PR
Images Courtesy of Formula E