Formula E Appoints Former AEG Exec Sam Piccione To Boost Series' Revenue

Sam Piccione III "might be new to motor-sports, but he’s far from new to sales -- and that’s the experience Formula E executives want in their newly hired chief revenue officer," according to HJ Mai of SPORTSBUSINESS JOURNAL. Piccione "joined the electric racing series earlier this month after having most recently worked as senior vice president of sales for AEG Europe and previously for AEG China." Formula E "begins its second season Saturday with a race in Beijing." Piccione said that "he sees a thread between his current and most recent employer." Piccione: "I had an amazing run at AEG to be a part of a big company that started small and entrepreneurial and became global. Formula E is similar in those notes and has the entrepreneurial spirit." Piccione, 40, "will work out of Formula E’s headquarters in London." He "will report to series CEO Alejandro Agag." Formula E had 10 blue-chip companies as official corporate partners for its inaugural '14-15 season, including DHL, Visa and Qualcomm. Piccione said that "he wants to continue the series’ pursuit of partners in the technology and sustainability sectors." A top priority "is finding a new championship cup sponsor." BCN World, owned by Formula E co-founder Enrique Bañuelos, "held that position in the series’ first season" (SPORTSBUSINESS JOURNAL, issue 10/19).

DRIVING GROWTH: Piccione told SBD Global that his role is to drive substantial year-on-year revenue growth across sponsorship, hospitality, merchandise and licensing. Neither Piccione nor Formula E were willing to put a dollar figure on the expected growth. The series will also continue to look for race title sponsors. For Saturday's season opener the presenting sponsor is the Chongqing Beibei National University Science Park. Other races that are expected to have title sponsors this season include Paris and Berlin as well as the only U.S. race on the calendar in Long Beach, Calif., according to Piccione. Visa will once again be the title sponsor of the season final in London.

Sam Piccione III

Formula E will also put an increased emphasis on the sponsorship activation side. "I think it’s a very important side of any sponsorship business," Piccione said. The series' hospitality area, Emotion Club, and its trackside festival area, eVillage, are the two main areas in terms of race day activation. “The two areas I want to concentrate on is maximizing revenue in the Emotion Club but also creating an experience for our corporate partners,” he said. “In the eVillage it comes down to the experience and interaction.” The eVillage not only provides Formula E’s corporate partners with activation and promotion opportunities but also local sponsors.

ASIAN TIES: Piccione hopes his experience in the Asian market, especially in China, will lead to an influx of local sponsor going forward. He pointed to next season’s race in Hong Kong, which was announced earlier this month. “I think we’ll see a little bit more of that,” he said. Piccione stated that the series is able to provide its partners with a lot more than trackside signage. Just like with any global sports property, broadcast plays a big role in the growth and appeal of the series. Media companies Liberty Global and Discovery Communications became shareholders of the series earlier this year. Piccione was the second exec hired since Liberty and Discovery became shareholders. Their first strategic move was the appointment of Discovery's Mike Papadimitriou as the series' chief financial officer. Formula E, which says its average fan is 29 years old, is also on the forefront in terms of digital engagement. Monday's deal with Facebook highlights this distinction. Fans can also actively influence the race. The "Fan Boost" allows fans to vote online for their favorite drivers. The three drivers with the most votes will get a temporary boost of power during the race. The series will also launch a new app before Saturday’s Beijing ePrix.