Building a Sustainable Commercial Platform in Motorsport: A PWR Group Perspective

‍The Escalating Costs of Motorsport

The financial demands in motorsport, especially in Formula 1, have reached extraordinary levels. Referencing the article “The Price Tag of Formula 1: A Complete Breakdown” by R. Daffa Favian D. A., some of the most shocking costs include the immense investment required to become a driver, which can amount to approximately 9.8 million USD, with no guaranteed seat at the end of the journey. On top of that, drivers must pay an annual FIA super license fee, which, for someone like Max Verstappen in 2023, totals over $1 million due to the $2,230 fee per point scored. The cost of building an F1 car is another staggering cost, estimated at $15 million, with major components like the power unit alone costing $10.5 million.

Additionally, teams face about $1 million in tire costs per season, using 20 sets of tires per weekend. Driver salaries further highlight the sport's exclusivity, with top drivers like Max Verstappen earning $55 million annually, excluding sponsorships. Even for fans, Formula 1’s luxury status is evident, with average ticket prices reaching $500 in 2023, and in some races, such as the Las Vegas Grand Prix, going as high as $1,667. Though generating $2.57 billion in revenue in 2022, Formula 1 teams continue to grapple with increasing operational costs, from freight to hospitality, underlining the high financial barrier present in every facet of the sport.*

Despite efforts to reduce costs, such as the FIA’s introduction of budget caps, spending continues to rise, particularly for the more successful teams. Ferrari, for example, operates with an annual budget of over 3.1 billion SEK, with other top teams like Mercedes and Red Bull following closely behind.

While this arms race of investment has driven innovation, it has also marginalized smaller teams and those with less financial backing. The gap between the best-funded teams and their competitors grows wider every year, leading to a sport where only the wealthiest can truly compete.

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At PWR Group, we believe the future of motorsport lies in sustainability, particularly through the electrification of racing. Electric motorsport, such as seen in Formula E and Scandinavian Touring Car Championship (STCC), presents a path forward where environmental concerns are addressed head-on.

We are pleased to highlight that the STCC has embraced this vision by licensing the electric racing concept developed by EPWR. This partnership, which debuted in June 2024, represents a significant milestone. As the STCC season continues into its second half, it is powered by EPWR’s innovative regulations and technologies. This collaboration underscores the transformative potential of EPWR’s framework, which has been instrumental in shaping the championship’s move toward a more sustainable and accessible future.

Through EPWR, racing has been revolutionized by implementing a more cost-efficient and sustainable model. Instead of building race cars from scratch, we repurpose and recycle used electric vehicles (EVs), significantly cutting down the costs associated with vehicle production. By stripping away non-essential components, we focus only on functional parts that directly impact performance, eliminating aesthetic additions that traditionally drive up costs.

In addition to this, we have implemented strict regulations on tire usage, which not only reduces the amount of rubber burned without purpose but also limits the number of tires teams need to manage. What’s more, we use standard street tires that can be repurposed for everyday vehicles after the race, creating a direct connection for OEM customers and further aligning with sustainability goals.

By reducing the complexity of car components, we’ve also limited the possibilities for frequent setup changes. This means fewer specialized parts are needed and teams require fewer engineers to fine-tune every aspect of the car, which drastically reduces operational costs. In turn, this leveling of the playing field shifts the focus back to driver skill, ensuring that races are more about talent than the financial clout of the teams.

This also levels the playing field for teams with differing financial capabilities, while promoting innovation in areas such as battery technology, energy efficiency, and aerodynamics. Lastly, this approach allows for a more balanced and competitive racing environment while maintaining affordability.

The Role of Partnerships in a Sustainable Motorsport Platform

The transition to sustainable motorsport also requires a reevaluation of how teams build commercial partnerships. In traditional motorsport, sponsorships have largely been driven by the pursuit of brand exposure at any cost. However, with the rising costs and the shift to electric racing, PWR Group envisions a more strategic approach—where partnerships are based on shared values of innovation, environmental stewardship, and technological advancement.

Collaborating with partners from clean energy, mobility solutions, and technology sectors can help create a commercially sustainable platform. These industries are not only aligned with the goals of electric racing but can also bring new ideas, revenue models, and technologies to the sport. We are also eager to team up with unlikely allies—partners from diverse and unexpected sectors—who share our commitment to transforming the industry. In this new ecosystem, partnerships focus on long-term value rather than short-term financial boosts, which helps reduce the ups and downs of motorsport sponsorship.

For PWR Group, instead of traditional sponsorships, these partnerships go beyond logos on cars. They are about co-creating a future where motorsport serves as a testbed for the technologies and ideas that will shape tomorrow’s world. This alignment between teams, sponsors, and technology providers can unlock new revenue streams while reducing the sport’s reliance on unsustainable business practices.

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PWR Group for a Commercially Viable Racing Ecosystem

Our mission at PWR Group revolves around enabling a motorsport environment that supports both financial sustainability and technological progress. By moving away from the traditional model—where success is often dictated by how much a team can spend—we aim to foster an ecosystem where performance, innovation, and sustainability drive commercial success.

The rise of electric motorsport is the perfect platform for this transformation. Not only does it align with the future of global transportation, but it also introduces a new framework for cost management, environmental responsibility, and fan engagement. Fans today are not just interested in speed and performance—they care about the broader impact of the sport they follow, from its carbon footprint to its role in advancing green technologies.

Lastly, electric motorsport is inherently aligned with the global push for sustainability. In a world where industries are racing to decarbonize, EV racing offers a compelling narrative that attracts environmentally conscious brands and new-age sponsors. This evolution is crucial not only for the sport's financial sustainability but also for its long-term relevance.

Conclusion: Shaping the Future of Motorsport

At PWR Group, we see the current financial model in motorsport as unsustainable for the long-term health of the sport. However, with the rise of electric and innovative solutions, there is an opportunity to create a motorsport ecosystem that promotes technological innovation and environmental sustainability. By driving the shift toward sustainable motorsport and forging partnerships with like-minded brands, PWR Group is committed to leading the charge in shaping motorsport’s future. Together, we can build a platform that not only ensures the sport’s survival but also elevates it as a pioneer in the global push for sustainability, innovation and great partnerships that allow business to flourish.


By the pen,

Jenny Videsparv
Head of Brand and Communication