The world of MotoGP is undergoing significant changes, with a new commercial agreement signed for the 2027–2031 period. While the deal was announced during the Czech Republic Grand Prix in Brno, the revenue distribution model differs from that of Formula 1. Manufacturers had hoped for a percentage-based revenue model, similar to Liberty Media‘s approach in car racing. However, a fixed-amount approach prevailed, with each team receiving just under 8 million euros annually.
Gunther Steiner, the CEO of Tech3 and a seasoned executive with extensive experience in Liberty MediaFormula 1 and sports management, offers a pragmatic view on the matter. Steiner, who took over Tech3 alongside a group of investors, believes that demanding a redistribution of profits at this stage would be premature. The South Tyrolean manager emphasizes the need for the sport to grow before considering profit-sharing models.
Steiner’s Pragmatic Approach to Profit Sharing
Steiner’s reasoning is straightforward: a percentage-based model works when revenues grow. However, if revenues decline, the risk is that teams and manufacturers end up with less certainty and cash on hand. Steiner, acting as a true executive, prefers a guaranteed baseline today over a potentially fragile revenue-sharing model. He cautions against demanding a share of profits only to face a decline in revenues, which could leave everyone in a precarious position.
The newly signed contract between the MotoGP Sports Entertainment Group including manufacturers like DucatiApriliaKTMHonda and Yamaha and the six satellite teams does not close the door on a different future model. However, it postpones the discussion for later. The next five years will be crucial in understanding how much Liberty Media the manufacturers, and the teams can grow MotoGP as a global product.
The Insatiable Appetite for Content
Steiner broadens his perspective to address the insatiable appetite for content that has swept through the sports world since the pandemic. Formula 1 has expanded to 24 Grand Prix races, while MotoGP has increased to 22 events, with a Sprint race every weekend. The World Cup has expanded from 32 to 48 national teams, with a total of 104 matches, and a similar increase has affected the Champions League. This growth, almost compulsive, raises questions about saturation and the need for unique identities for each event.
Steiner believes that as long as people want more content, it should be provided. However, he acknowledges that there is a limit to how much can be offered, primarily constrained by the human body’s capabilities. He wonders why this demand has surged since the pandemic but thinks the world is evolving, and people are constantly being given more. He expects this trend to sort itself out when enough is enough.
The key, according to Steiner, is to ensure that each event has its own identity. Formula 1 has succeeded in this by offering sprint races, street races, night races, and uniquely designed race weekends. It’s not just about quantity but presentation. Steiner believes Liberty Media will likely try to make similar changes to MotoGP to avoid saturation.
If every race were identical, marketing 24 events would be challenging. However, with each race offering something special, people are more likely to watch. This approach ensures that the sport remains engaging and avoids the pitfalls of oversaturation.
