McLaren braced for closure as racing series losses double

McLaren's Formula E operations face closure at the end of the current season as the racing series' losses nearly doubled to €78.3m (£67.6 million) in 2023/24.

The McLaren squad announced in April that they would be quitting the all-electric racing series at the end of the current season, and the iconic manufacturer will instead focus its resources on a World Endurance Championship entry for 2027.

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Since this announcement, team principal Ian James has been searching for a buyer to ensure that the outfit remains in Formula E, albeit under a different name.

Hyundai were rumoured to be an interested party, but as of yet the team are yet to find a buyer that ensures their future in the series.

According to Motorsport.com, the team will close down in September following the end of the current season and if McLaren are unable to find a buyer, the team's entry will return to Formula E Holdings.

The future of their two drivers Sam Bird and Taylor Barnard hangs in the balance following the closure of the team, with McLaren's Formula E squad also offering opportunities to young female racing talent.

In 2024, Formula E held its first ever women's test which allowed former and current F1 Academy stars Bianca Bustamante and Ella Lloyd to share three hours in the GEN3 Evo car.

Lloyd will return to Formula E machinery on Monday, July 14 for the Berlin E-Prix Rookie Test, reflecting the opportunities McLaren provides young drivers by participating in the series.

Formula E's losses double

The current health of Formula E was detailed in SportsPro's publication of the series' financial revenue from the 2023/24 season.

According to the report, Formula E saw its pre-tax losses nearly double to €78.3 million (£67.6 million) in its financial year ending 30th September 2024.

Losses grew by 87.4 per cent year-over-year from €41.8 million (£36.1 million) in 2023, whilst revenue fell by 13.7 per cent to €189.6 million (£163.7 million). Cost of sales was also largely flat at €202.1 million (£174.5 million).

Formula E's decrease in revenue has been attributed to the reduced number of race events in 2023/24, which compared to the previous 2022/23 season, did not feature races in Cape Town, Jakarta and Rome.

However, the series claimed that its audience and fan base grew, with a 35 per cent increase in cumulative viewers to 491 million and a 23 per cent rise in fans to 371 million.

An official Formula E comment to the above publication read: "The long-term financial performance of the series is expected to improve as the championship builds its fan base and expands media following.

"Given the stage of growth, the main emphasis of the group continues to be on revenue and achieving profitability."

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