Formula E has announced that it will introduce its own version of the Concorde Agreement so that ratings and revenues are higher.
This commercial agreement, which also includes the Gen3 regulations, will increase Formula E’s financial sustainability and commercial appeal.
It will describe what rights the teams will have to share their content with the world and also which broadcasters will get the broadcast rights. There will definitely be restrictions on this because currently there are hardly any prohibitions for the teams in terms of information dissemination.
This new Concorde agreement is comparable to Formula 1, where it was also agreed with the broadcasters what content can be shown and what not.
“We are working on this commercial framework,” said Jamie Reigle, managing director of Formula E. “In simple terms, it concerns the boundaries of rights that sit between the promoter and the teams.[…] The promoter and the teams’ objectives are aligned in driving the media product as we all benefit from growing audiences and greater exposure for our sponsors. Honestly, I feel really good about where we’ve got to on that front.”
The goal of this commercial agreement is that ratings will go through the roof and this is to be done with a distribution of broadcasting rights.
“It’s a media distribution strategy and a media platform strategy that is consistent with what you might expect the top-tier sports, whether it’s football or Formula 1 or basketball in the United States. We’re still not at a point where we’re monetizing or commercializing our media rights in that way. It’s easy to say grow the audience, but how do you lay those foundations? You need to be partnered with the best broadcasters in each market.”