According to several sources, McLaren is dropping out of Formula E because the team has lost one of its biggest sponsors. Instead, the money will be spent on Formula 1 and Le Mans.
McLaren looks set to leave Formula E.
This will happen when the series switches to Gen 4 cars in the 2027 season. The decision is closely linked to main sponsor NEOM.
NEOM has reportedly chosen not to renew its agreement with McLaren. McLaren is now focusing on the Le Mans Hypercar program. As well as remaining in Formula 1.
Supercar manufacturer McLaren entered Formula E in 2023. This was done by taking over the championship-winning team left behind by Mercedes.
This is what The Race writes.
McLaren briefly served as a customer team for Nissan. They received financial support from the Saudi Arabian project NEOM.
The contract with NEOM covered the entire Gen 3 era from 2023 to 2026. The agreement included an option to extend the collaboration for another four years. But it doesn't seem to be urgent.
The Gen 3 regulations expire after next season. NEOM has reportedly chosen not to exercise the option in the sponsorship contract.
NEOM agreement expires soon
McLaren has consequently informed its employees and the team management that it is withdrawing from the series, instead focusing on its recently announced Le Mans Hypercar programme.
This development leaves team principal Ian James in a difficult position. He now has to find a new main sponsor.
He also needs to find a new manufacturer partner for his HWA team, which is necessary to continue in the championship going forward.
McLaren's success in Formula E has been limited so far, with the team managing just a single victory in early 2024.
This has happened despite four pole positions and several podium finishes. Racing driver Sam Bird and new driver Taylor Barnard have been responsible for the results.
However, the team seems to be on the right track in 2025. But the intense racing under the Gen 3 Evo rules has not yet yielded any gains.
Focus shifts to Le Mans
McLaren's move is apparently also connected to other interests of Saudi Crown Prince Mohammed bin Salman.
"The Line" is a 177-kilometer-long skyscraper city. Construction began earlier this year. The city is planned to house around nine million residents when completed in 2030.
The Saudi Arabian investment fund, PIF, will reportedly invest over a trillion dollars in the NEOM project. That's equivalent to approximately 6.9 trillion Danish kroner. But McLaren's Formula E venture is not part of that.
The NEOM project includes four megacities. In addition to "The Line," there is Oxagon, a "smart" port city. There is also Trojena, a desert ski resort with artificial snow. Finally, there is Sindalah, an o run almost entirely by Marriott luxury hotels.
If Saudi Arabia's PIF is already short of money for its partnership with McLaren, that could be cause for concern. It could potentially be a sign of larger economic challenges globally.
Time will tell whether this is an isolated incident or whether it heralds a larger withdrawal from motorsport, like after the financial crisis in 2008.
Elsewhere in the world of motorsport, however, there is still a lot of money in the air. Max Verstappen is said to have been offered several billion kroner to quit Red Bull. Read more about it here .
