Fanatec Renews F1 Partnership Amidst Investment Pitches

Fanatec Renews F1 Partnership Amid Valuation Slump 02.jpg
Official Formula 1 branded sim racing continue will continue to be produced by Fanatec, as share price slumps.

Formula 1 and sim racing equipment manufacturer Fanatec will continue to partner on F1-branded hardware following a renewed deal.

The official licencing agreement is said to be ‘multi-year’, extending a collaboration that first started in 2018. It includes Fanatec equipment being used at F1 races, in Fan Zones and Paddock Club, alongside the product line.

The equipment used in the championship’s esports series, F1 Sim Racing, will also continue to be supplied by Fanatec. The final set of rounds for the current season is expected at a LAN even running 7th-9th May.

Fanatec F1 Wheel Podium DD Extreme.jpg


“We're thrilled to extend our partnership with Formula 1 and to be the Official Provider of F1 Sim Racing,” said Belma Nadarevic, Chief Marketing Officer of Fanatec.

“Formula 1 and Fanatec share the same desire to bring authentic, immersive motorsport experiences to fans everywhere.”

This follows the ClubSport Racing Wheel F1 Bundle, which was released in March with a new variation on the F1 wheel paired with the PC and PlayStation-compatible DD Extreme wheel base.

There is no update on the F1-branded Fanatec cockpit’s availability, first seen in 2022 at the 24 Hours of Spa in prototype form (main image), which is currently used in the aforementioned F1 Sim Racing events.

Possible Recapitalisation Process, Share Prices, Fresh Investment​


Parent company Endor AG published a brief update to markets on 24th April, explaining that a recapitalisation process is set to begin, following the granted extension of bridging loans. Terms of said loans saw founder Thomas Jackermeier dismissed as CEO, although he is still working at the Landshut-based company.

"After extending the bridging loans until June 30, 2024, the Executive Board of Endor AG initiated a recapitalization process in coordination with the financing banks," reads the statement.

"Endor AG is in ongoing discussions with investors. Depending on the investors’ offers, various options are examined.

“The investor process is conducted in an open-ended manner and the Board of Directors examines an injection of equity capital through capital increases as well as investor entry using instruments in accordance with the Act on the Stabilization and Restructuring Framework for Companies (StaRUG).”

Fanatec Renews F1 Partnership Amid Valuation Slump.jpg


Following this news, the markets reacted in a dramatic fashion, with Endor’s share price plummeting yesterday (25th) to its lowest point in nearly seven years, before rallying again this morning (26th). At the time of writing, it sits at €1.19 (compared to yesterday’s low point of €0.55), which is still over a 90 per cent decrease from 12 months ago.

Today, a further statement was published by Fanatec's Chief Financial Officer, Matthias Kosch. It discusses an expected liquidity requirement of €25 million by October 2024, and how it is speaking with "several investor groups" to cover it. In a twist, one of these involves former CEO Jackermeier:

"This also includes investors who are working on an offer together with the majority shareholder, Mr. Jackermeier," states the release.

"The injection of equity capital through capital increases is an option, as is investor entry with instruments in accordance with the law on the stabilization and restructuring framework for companies (StaRUG)."

It follows the appointment of a new CEO, Andres Ruff earlier this month. He was initially hired as Chief Restructuring Officer, before being moved into the chief executive role.
  • Haha
Reactions: stenovitz
About author
Thomas Harrison-Lord
A freelance sim racing, motorsport and automotive journalist. Credits include Autosport Magazine, Motorsport.com, RaceDepartment, OverTake, Traxion and TheSixthAxis.

Comments

They were probably already committed to this prior to the recent debacle, and bailing on this might well have involved large penalties.

Well, that's the only reason I can think of for such an utterly idiotically stupidly boneheaded move.
 
Does anyone really buy a product just because it has an official licence?
Anything that is proud to sponsor this that and the other usually makes me want to throw up ;-)
 
Premium
Isn't sponsorships one of the places where Fanatec is beeding money? Granted they probably get money from this partnership, but elsewhere Fanatec putting ads all over racing events and in games is where some of the losses are, right?

Also, the F1 rig should have been happened. What is the hold up?
 
Premium
Fanatec really have to clear out their product portfolio. With inventories shooting up and at the same time many customers waiting for their orders, they're getting into serious troubles. Their capital requirements are just massive.
 
Been on the verge of buying a DD wheel for a while now but as time marches on Fanatec don't seem to be sorting out their delivery woes. If I do buy one from them I'll be using the credit card.
 
For a long time i was extremly excited for the Fanatec DD+, but after all this trouble I am now looking at the Simagic Alpha U
 
LOL, they're a penny stock now!
If they have trouble finding 25mln in the current environment with easy money & F1 mania... It means things are VERY bad.
They need a lead product that mass sells. Not DD+++ or whatever bs with 40% margin @ a few thousand sales.
They need to innovate & the only way IMHO is to make DD motors way cheaper to produce at the same performance & similar reliability.
 
Premium
My last Fanatec item (shifter) left on Facebook Marketplace 30 minutes ago. Never had much trouble with any of the Fanatec gear I had, just upgraded over the years and never felt Fanatec had an upgrade path that interested me.
 
They need to innovate & the only way IMHO is to make DD motors way cheaper to produce at the same performance & similar reliability.
Fanatec have already been pretty damned innovative with their motor designs and as a result were one of the main drivers in reducing the overall cost of DD wheelbases.

That said servo motor technology is already very mature and one of the main costs of servo motors is driven by the cost of the rare earth elements needed to produce the required permanent magnets. The cost of which has exploded in the wake of the popularity of smart devices and more recently milkfloats EVs.

In fact Lenze, whom I'm led to believe manufactures the motors for Simucube, actually have a market linked surcharge based on the weight of Neodymium and Dysprosium present in each motor. Basically there's a base price for the motor and then there's an additional cost based on the current market prices of the rare earth elements used in the production of the motor.

So things are unlikely to get cheaper unless a new formulation is found for permanent magnets equal to the strength and permanence of the current rare earth magnets.
 
Well, I didn't say it was going to be easy. But that's their only chance. They're right now a niche manufacturer with giant debt problem & under enormous pressure from new upstarts with more competitive pricing. This means one thing.
They need to go proper mainstream with big revenue to offset the big debt or... tscheus :)
 
Premium
The F1 Esports wheel, the Podium QR2 and, the 12Nm CS DD for $900, is a step in the right direction. At least concerning bundles on offer.
 

Latest News

Article information

Author
Thomas Harrison-Lord
Article read time
3 min read
Views
3,063
Comments
12
Last update

How are you going to watch 24 hours of Le Mans

  • On national tv

    Votes: 254 34.0%
  • Eurosport app/website

    Votes: 205 27.4%
  • WEC app/website

    Votes: 141 18.9%
  • Watch party

    Votes: 61 8.2%
  • At a friends house

    Votes: 18 2.4%
  • At Le Mans

    Votes: 69 9.2%
Back
Top