How MotoGP Makes Money (Revenue & Expenses )

by Sameer Arshad | Posted on Sunday, July 27th, 2014 | 0

How revenue is generated in MotoGP, is the question every concerned fan would like to know. MotoGP system run pretty much similar to the one like in Formula 1 but the revenue stream almost half what of formula 1 is. Lets take deep look at the MotoGP money generation ways and than the distribution channels. We will begin with a general chart of how revenue stream works in MotoGP different channels and stake-holders.

MotoGP Revenue Flow Chart:

Revenue flowchart how motoGP makes money

First off all we will talk about how “Dorna” the parent company of MotoGP, generate revenue. Its a pretty simple process and here are few points to consider.

  1. A promoter pays a specific amount of money to MotoGP (Dorna) to host a race, in most cases promoter and host circuit is the same entitiy
  2. MotoGP makes money by selling TV rights in different parts of the world. The basic feed is produced by Dorna, which they sell to broadcaster around the world who present on local tv channels in their own way.
  3. MotoGP further expand their revenue by selling rights, such as video games, sponsorship deals and MotoGP official website memberships.

Now lets take the same thing in numbers. According to a very truster source, which I can not link here (because of subscription content) MotoGP annual revenue is a little over $250 million.

How much does it cost to host a MotoGP race ?

Hosting a MotoGP race can cost minimum of $4 million while some of the circuits are paying almost $10 million a year to Dorna to host a grand prix. So thats 20 odd grand prix weeks netting around $75 a year in total.

cost of hosting MotoGP race

Motorland Aragon signed a 6 year deal with MotoGP in 2010 where they will have to pay 41 million euros over the period of 6 years and thats 7 million euroes a-year.

MotoGP Btsports deal worth $100 millionTV Broadcasting Rights Sale:

MotoGP sell its Rights to many broadcaster around the world, for example BtSports got the exclusive motoGP rights in United Kingdom which cost them around $70 – $90 million.

Total rights sale should be around $100 to $120 a year. But Dorna has to spend and spend big on producing a global feed for the broadcaster and that is where dorna itself has to spend money.

Revenue generations from sponsorship & other rights sale:

There is huge sponsorship potential and companies like Monster energy, herts, tim, Bwin are long term partners of MotoGP they are netting Dorna around $100 million a year in sponsorships.

MotoGP Sponsors money

Does Dorna Pay Extra To Satellite Bike Makers ?

MSMA gets $10 million plus around $2 million for prodcing every satellite bike (Ezpeleta confired this info). So yeah they surely get extra for making satellite bikes.

Dorna Has To Spend On Transportation Cost Of Bikes & Personnel:

according to a recent report Dorna spend around $50 million yearly on just transportation of bikes and personnel involved in hosting a MotoGP weekend.

Do Riders & Teams Get Any Prize Money ?

In a very recent development MotoGP announced a bit of structual change in the coming years and from what we heard from the inside sources yest there is prize money in all three categories. MotoGP pays prize money according to how the drivers finish (money + travel allowances and tyres costs) how much money they pay, is not disclosed.

How MotoGP Riders Generate Income ?

MotoGP drivers are paid handson amount of salary with their professional contracts. Most of the big names makes in excess of $1 million. Take a look at all motoGP 2014 riders salaries here. While the drivers in the lower teams dont get enough salary, they have to live off by signing sponsorship deals. Here are the top 5 highest paid riders in motoGP today.

highest paid MotoGP Riders

About the Author

Formula one fan, blogger, designer and entrepreneur. Knows thing or two about a thing a two of sports, tweak codes, make cool infographs.

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