Entrepreneur traveled to Monaco to watch the E1 race, an all-electric international powerboat racing series that takes place in various locations around the world throughout the year. The league is in its nascent phase — just the second season — with major plans for expansion. While in Monaco, surrounded by picturesque views of the Mediterranean Sea, Entrepreneur interviewed Rodi Basso, the CEO and co-founder of E1, to learn about the strategy, vision and business objectives for this new boat-racing series. Here is that conversation, which has been edited for length and clarity.
Entrepreneur: Tell me a little bit about the genesis of E1 – what inspired its creation, and how did you identify a market for electric boat racing?
Basso: The E1 series is a new sport platform that is based on the idea of protecting and celebrating the [marine] lifestyle for future generations of people who either live near waters, lakes, oceans, rivers or go to nearby coastal areas to enjoy it.
We come from the motorsport culture, where [with] a technological and data-driven approach, we have seen how much it can make a difference, not only in the sporting industry, but also in the commercial environment. And so, together with Alejandro [Agag] (co-founder and chairman of E1), we identified a gap in the marine industry.
We wanted to build a new platform to showcase [and] test new solutions. And from now on, we will keep developing this platform in order to really have an impact.
How would you describe E1’s core business model? Where do the main revenue streams come from, and how do you see them evolving?
We worked a lot on the strategy and the business model. I’m very passionate about this part. We base our business on the hosting fees. So, we select iconic places where there is funding for the race. Then, we own the boats, and we provide the teams [with] all the logistic services, high-level maintenance of the boats, all the telemetry and technology.
The teams pay us in order to receive these services. And then, of course, sponsors and media. Now, the more we go forward, the more the media will notice us because the numbers are already quite impressive in terms of fans, viewers, digital media and broadcasters — we are very pleased with the results.
And so, let’s say in the region of 10-15 years, I expect media to become another big revenue stream, of course, with sponsorship as well.
Image Credit: Shiv Gohil | Spacesuit Media
You mentioned hosting cities. We are in beautiful Monaco right now. How do you go about selecting the cities that you want to partner with, and what makes a city a good fit for the E1 brand?
Well, as I mentioned, E1 is about the lifestyle near the waters. So, we look for iconic places where everybody wants to go and visit. We are in Doha, Jeddah, Dubrovnik, Italy, Miami and Lagos soon — places where either there is a strong and deep culture of the marine lifestyle [or] the yachting lifestyle at all levels.
We are not [targeting] one particular segment; we offer exclusive hospitality, but also a more open fan zone [where] everybody can come for free and feel a bit like celebrities while enjoying the show.
So, it’s important to be in iconic places where there is a lot of care for the future generations and the future of water mobility.
Related: Want to Win in Business? Start Thinking Like a Race Car Driver
Is there a dream city that you would love to expand E1 to?
Asia is important. We want to be in Tokyo, Sydney, Singapore, Hong Kong, China, India. In Asia, there is a lot of culture about powerboating in general. So we come with this new product, and I am very curious to see the reaction of people there. For me, North America is also very important for the simple reason that 75% of the markets for leisure boating are in North America.
We also have talents owning the teams, and many of them are based in America or are Americans — so that’s another important part to expand.
How does E1 differentiate itself from other racing leagues, both in terms of the fan demographics and commercial viability?
Well, first of all, we started seeing the numbers and the statistics, and we [saw] a nice balance between the female and male fans watching our product. Also, in terms of generations, the center of gravity is between 25 and 30 years old, which is another good result.
Of course, we talk to governments, we talk to big businesses that are interested in knowing more and having us, but in the meantime, it’s very important to talk to the future generation because we want to make sure that we have fans in the future. So we have to attract them and somehow share with them everything that we have learned about technology, and also, the need for the blue economy.
Entrepreneur note: The “blue economy” refers to the sustainable use of ocean and water resources for economic growth, improved livelihoods and jobs, while preserving the health of marine and freshwater ecosystems.
You’ve brought on high-profile team owners like Tom Brady, Will Smith, Marc Anthony, LeBron James and Rafael Nadal. Talk a little bit about how the celebrity factor plays into the growth strategy for E1 as a global brand.
It’s an incredible honor and privilege to have team owners. They are inspiring people [who] have always been working at the edge of excellence in sports and entertainment — because this is also what we are [about]. They represent our ethos as well. We are also very pleased that they a