Formula E would relocate from its current headquarters in London if the British government fails to strike a deal over tax and employment ahead of its withdrawal from the European Union.

The UK voted in June 2016 to leave the EU, with talks between its politicians and officials in Brussels ongoing ahead of a planned ‘Brexit’ in the spring of 2019.

Prime Minister Theresa May has stressed the British government would prefer no deal than a bad deal, leading to concerns from a number of businesses based in the UK.

Formula E’s main headquarters are located in Hammersmith, West London, but series CEO Alejandro Agag would not hasten to relocate to another EU member state should Brexit talks break down and no deal be struck.

“We have a lot of expats that work in the company. Probably of our 100 employees, 50 are British and 50 are from other countries,” Agag told Reuters.

”And a lot of our contracts come from the European Union in terms of sponsorship. So if there is not a deal in terms of tax and employment, we will leave.

“We probably would leave overnight. We could make a decision in one day and then leave.

“We’re looking at different options. Maybe Holland, maybe Monaco. Some nearby place in the European Union.

“If there are withholding taxes on sponsorship payments, that would make our business impossible. So then we would have to leave. And of course if the people cannot stay here working then that would make us leave also.

”A sponsor from France, like Michelin for example, the fee they pay me will have a 30 percent withholding. So my revenue will go down by 30 percent.

“And if I move to France or Holland, I will get the whole fee. It’s a no-brainer.”



Loading Comments...