Prospective F1 team LKYSUNZ secures further funding; vows to pay higher entry fees

Thomas Maher 21 Sep 2023 10:30 PM

The race start of the 2023 Singapore Grand Prix.

Having submitted a formal application to the FIA earlier this year, LKYSUNZ have confirmed they have secured further funding that would allow them to pay higher entry fees.

One of the prospective teams to have submitted an application to the FIA during the invitation for entrants to submit their interest, LKYSUNZ, has confirmed that they have secured additional funding.

Seeking a position on the F1 grid from 2026, the Asia-based prospect has secured funding from Legends Advocates Sports Group, a US-based sports fund.

Why securing additional investment is important for F1 prospects

LKYSUNZ is one of several prospects to have formally submitted an entry interest with the FIA, going up against the likes of Andretti Global, Hitech GP, Formula Equal, and Rodin Carlin.

Under the current Concorde Agreement, prospective F1 entrants would need to shell out $200 million as their entry fee to Formula 1, but this figure is expected to be revised heavily upwards for the re-negotiated Concorde Agreement that will come into effect from the start of 2026.

$600 million is the expected ‘anit-dilution’ figure that has been mooted, and LKYSUNZ says that the securing of their new investor will allow them to pay this figure – a move that could reassure the FIA and FOM as deliberations over a new entrant continue.

LKYSUNZ says the funding will be used to develop cutting-edge facilities, as well as build the team through its infancy and its initial car development. The team has pledged to carry out “grassroots and youth programmes” to grow the sport in younger and more diverse demographics and says they have received support from governments, automobile clubs, and institutions in Malaysia, Indonesia, Thailand, Nigeria, and Kenya.

“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 1 Group and FIA to bring it to its current level,” commented Benjamin Durand, CEO of LKYSUNZ.

“With the news of our additional funding, we are delighted to confirm that LKYSUNZ is prepared to meet the teams’ request and pay a $600m anti-dilution payment despite this current cycle of the financial regulations stating $200m. We look forward to continuing our positive discussions with the FIA and are thrilled by our partners’ financial backing.

If successful, LKYSUNZ says they will be the only applicant with a base in Asia, with operations also in Africa.

“Our ambition has always been to ensure that the sport remains competitive whilst bringing true diversity into the paddock, which is vital for the long-term growth for all in Formula 1,” Durand continued.

“We know commercially the opportunity to expand the sport into Asia and Africa is 100% the right decision, it’s viable and most importantly it’s what prospective and current motorsport fans around the world are demanding. The significant financial commitment from our partners is an endorsement, and we are confident that our entry can propel the interest in the sport to reach new heights.”

Who are Legends Advocates Sports Group?

According to their website, LKYSUNZ’s new investors are “a consortium of experienced international business experts taken from a wide range of commercial sectors, including finance and real estate.”

Based in Tampa, Florida, their website lists investments into AI media Blisser, online fantasy eSports platform World Champion Fantasy, West Virginia Minerals & Coal Stock, as well as real estate in Lake Como, Italy.

Benjamin Durand: Asia and Africa are F1’s next big market

A Durand-led F1 team has been a project he’s been trying to make happen for several years, having previously attempted to get the Panthera project off the ground before the COVID-19 pandemic scuppered their progress.

Speaking to PlanetF1.com earlier this year, Durand outlined the reasons behind his interest in establishing an Asian-based F1 team.

“We still think that the Asian market and Chinese market are the next markets to be developed,” he said.

“They are all looking west, nobody’s looking east,” he said. “Now Formula 1 is focusing a lot on the US which is normal because it’s growing but once that market is there, Asia and Africa are the next big market for F1, especially now that Zhou [Guanyu] is in the Championship.

“The particular issue you have when you want to try to create a Formula 1 team is to have all the planets align.

“So when we had the money, the FIA and F1 were not ready because at the time they were renegotiating the Concorde Agreement. So they were not ready to have new teams arriving until they signed the existing teams.”