Asia-based LKY Sunz has secured US$1 billion in funding for a potential Formula One entry.
Confirmed:
- Asian outfit prepared to pay US$600 million anti-dilution fee
- Considerable financial backing is a record for any team trying to enter Formula One
Context:
The operation, first announced in May of this year, describes itself as an ‘entertainment and youth-culture focused motorsports team’ and has secured significant investment from US-based sports fund Legends Advocates Sports Group. LKY Sunz appears to be a rebrand of the former Panthera Team Asia F1 Team project. Other organisations pushing the join the Formula One grid include the likes of Andretti Global and Hitech GP.
Comment:
Benjamin Durand, chief executive of LKY Sunz, said: “We have heard the comments of the teams and we wholeheartedly recognise the effort, commitment and investment that they’ve poured into the sport alongside the Formula One Group and FIA to bring it to its current level. With the news of our additional funding we are delighted to confirm that LKY Sunz are prepared to meet the teams’ request and pay a US$600 million anti-dilution payment despite this current cycle of the financial regulations stating US$200 million. We look forward to continuing our positive discussions with the FIA and are thrilled by our partners' financial backing.”
Coming next:
The commitment to pay US$600 million is pre-empting an expected increase in the entry cost, as Durand notes the fee to enter Formula One currently sits at US$200 million. Recent comments from Zak Brown, chief executive of McLaren Racing, suggested that “the right team with the right resources” would be accepted into the sport, but he believes US$700 million would be a more representative anti-dilution fee.