Guenther Steiner, CEO of Tech3, has shared the reasons behind maintaining the current fixed fee model in MotoGP service, despite all five motorcycle manufacturers pushing for a share of the championship’s profits. During the latest negotiations, the MotoGP Sports Entertainment Group (MotoGP SEG) agreed on a new commercial contract covering the years 2027 to 2031.
This agreement, verbalized in a press conference during the Czech Grand Prix, is considered a ‘historic moment’ for MotoGP. The six satellite teams have also signed this contract. One of the hot points during the lengthy negotiations was the financial division, where manufacturers sought a share of MotoGP revenues. However, the MotoGP SEG always defended a fixed amount.
An annual amount of just under 8 million euros was agreed for each team. When asked why the idea of profit-sharing was ultimately discarded, Steiner emphasized that ‘everyone wants more’. This human nature of wanting more contrasts with the current reality of MotoGP.
Steiner explained that adopting a fixed fee model at this time was essential. After the European Commission’s approval of Liberty Media’s purchase of MotoGP, the growth of the racing series has just begun. Additionally, he pointed out that it is important to show the championship’s potential before asking for more resources.
According to Steiner, ‘we need to reach a point where there is more money available, and then we can share it as well. Right now, I believe everyone is satisfied with what they receive.’ Furthermore, he stressed that profit-sharing could be risky, referring to potential economic uncertainties that may arise.
The next five years will be crucial to see how Liberty Media, the MotoGP SEG, and the teams can further develop the MotoGP product. With 11 teams, a stable base for this growth has been created.
Steiner also reflected on the trend of ‘gigantism’ in sports since the pandemic, with an expansion of the competition calendar and increasing audience demand. As the world evolves, a balance must be found to meet fan expectations without reaching a saturation point.
Written by FormulaRapidaAI
