MotoGP Manufacturers Seek New Revenue Framework

In a significant development in the world of MotoGP, the manufacturers are uniting to push for a more favorable financial framework. This movement comes as they attempt to negotiate a better share of the income generated from the championship’s commercial rights, which are currently held by the promoter, Dorna Sports. This initiative reflects the growing concern among manufacturers about the financial structure of MotoGP, particularly in light of recent changes in ownership and management within the sport.

Background of the Manufacturers’ Meeting

Recently, five key manufacturers in MotoGP convened during the Czech Grand Prix weekend to address their collective concerns regarding the economic aspects of the championship. They formalized their commitment to this cause by signing a document, which designated Lin Jarvis, a former director at Yamaha, as their spokesperson. Jarvis, who still serves as an advisor, along with Massimo Rivola, the president of the Manufacturers’ Association (MSMA), subsequently met with Carmelo Ezpeleta, the CEO of Dorna Sports. Their primary objective was to communicate the manufacturers’ desire to revisit how the financial assets generated by the championship are distributed.

Initially, this initiative was championed by the manufacturers themselves, but it soon garnered the support of satellite teams as well. The discussions indicated a strong collective will among the teams to improve their financial situation within the sport. However, it has been reported that Dorna’s initial reaction was less than enthusiastic, which the manufacturers had anticipated. They remain hopeful that a compromise can be reached when negotiations continue, likely at the upcoming event in Austria.

The Need for a New Agreement

One of the key motivations behind this push for a new financial framework is to create an agreement similar to Formula 1’s Concorde Agreement. This document outlines the revenue distribution among F1 teams based on their performance in the championship. Although the precise details of the Concorde Agreement are confidential, it is understood that the distribution is significantly influenced by the teams’ final standings at the end of the season. For instance, the difference between finishing fourth and fifth can exceed €10 million, highlighting the financial stakes involved.

Currently, the agreement governing MotoGP’s financial distribution is set to expire in 2025. However, a new five-year agreement has already been signed, commencing in 2026. This presents an opportunity for the manufacturers to negotiate terms that could provide them with a more equitable share of the revenue generated by the sport.

The historical context of the Concorde Agreement in Formula 1 reveals a contentious past. Originally established in 1981, the agreement led to significant conflicts between the Federation Internationale du Sport Automobile (FISA) and the Formula One Constructors’ Association (FOCA). Bernie Ecclestone’s rise to prominence in the F1 landscape ultimately led to a revised agreement in 1987, following the establishment of Formula One Management (FOM). The MotoGP manufacturers are striving to avoid such conflicts and instead seek a constructive dialogue with Dorna.

Financial Concerns of the Manufacturers

The manufacturers’ primary concerns revolve around two main issues: revenue distribution and ownership of grid slots. The current financial structure offers satellite teams a fixed amount of €2.5 million per motorcycle they lease, totaling €5 million. This fixed sum does not reflect the true potential earnings that could be achieved based on the teams’ performances and the overall financial health of the championship.

Furthermore, the ownership of grid slots has been a point of contention. Currently, these slots, which are essential for a team’s participation in the championship, are owned by Dorna. The slots are granted to teams for a specified duration, with the latest agreement allowing teams to compete for five years, set to expire at the end of 2026. The manufacturers are advocating for legal ownership of these grid slots or, at a minimum, for guarantees that would allow them to make independent decisions without being entirely dependent on Dorna’s discretion.

The Impact of Liberty Media’s Acquisition

The push for a new financial framework comes on the heels of Liberty Media’s acquisition of Dorna, a deal valued at €4.3 billion. Liberty Media, which also holds the commercial rights to Formula 1, has brought a new dynamic to MotoGP. The acquisition has heightened interest from investment funds looking to purchase independent teams within the MotoGP paddock. However, Dorna currently values each team at approximately €20 million, a figure that many find challenging to justify, especially given that the promoter retains legal ownership of the grid slots.

This financial landscape creates significant barriers for independent teams seeking to establish themselves within the championship. The manufacturers believe that by securing a more favorable revenue framework, they can not only enhance their own financial positions but also contribute to the overall growth and sustainability of MotoGP.

Looking Ahead: The Future of Negotiations

As the manufacturers prepare for their next round of negotiations with Dorna, the focus will be on creating a more equitable financial structure that addresses their concerns. The hope is that by working collaboratively, the parties involved can come to an agreement that benefits both the manufacturers and the promoter. The upcoming event in Austria will be a crucial juncture in these discussions, as the manufacturers aim to solidify their position and advocate for changes that align with their vision for the future of MotoGP.

In conclusion, the united front presented by the manufacturers represents a pivotal moment for MotoGP. Their efforts to renegotiate the financial framework reflect a desire for greater equity and transparency in how revenues are distributed within the championship. As negotiations continue, the outcome will undoubtedly shape the future of MotoGP and the relationships between manufacturers, teams, and the promoter.

By addressing these pressing financial concerns, MotoGP has the opportunity to pave the way for a more sustainable and prosperous future for all parties involved. As the sport evolves, it will be essential for stakeholders to engage in constructive dialogue and work towards solutions that foster growth and competitiveness in the racing world.

The motocross community is watching closely as these discussions unfold, eager to see how the outcome will impact the championship and its participants. The collaboration between manufacturers, teams, and Dorna has the potential to redefine MotoGP’s financial landscape and ensure its continued success in the years to come.