Leaders of six independent MotoGP teams—LCR, Pramac, Gresini, Tech3, Trackhouse, and VR46—have reached a preliminary agreement on commercial terms for a five-year contract starting in 2027. This agreement, guided by IRTA CEO Lucio Cecchinello and Dorna CEO Carmelo Ezpeleta, secures these teams’ participation in the premier motorcycle racing class until 2031. Ezpeleta is negotiating closely with Liberty Media, the new majority owner of MotoGP, which also controls Formula 1’s commercial rights.
Meanwhile, the five major manufacturers—Honda, Yamaha, Ducati, KTM, and Aprilia—are negotiating separately, requesting increased financial support and greater influence in decision-making, inspired by the Formula 1 Concorde Agreement model. Their demands reflect the significant revenues Liberty Media has generated through Formula 1 and its popular documentary, Drive to Survive.
Manufacturers’ Demands Versus Financial Realities
Carmelo Ezpeleta highlighted the financial limitations of motorcycle racing compared to the automotive industry’s giants. While corporations such as Toyota, Volkswagen Group, Stellantis, General Motors, Ford, BMW, and Ferrari generate massive revenue streams, European motorcycle manufacturers remain much smaller in scale. For example, Ducati reported €1.003 billion in revenue for 2024 with an operating profit of €91 million, maintaining this level for three consecutive years.
In stark contrast, Bajaj Mobility—formerly Pierer Mobility—faced insolvency in late 2024 with debts of €1.8 billion and laid off nearly half its Austrian workforce. Bajaj’s motorcycle sales dropped drastically from 381,555 in 2023 to an expected 100,000 in 2025, highlighting challenges within the sector. For comparison, Audi sells around 1.9 million vehicles yearly, underscoring the scale disparity.
Upcoming Negotiation Milestones and Contract Outlook
The negotiation process is entering a critical phase, with additional discussions planned at the MotoGP season launch in Kuala Lumpur in early February 2027. The final contracts should be agreed upon by the start of the European MotoGP season in Jerez in late April. Ezpeleta, with decades of experience including hosting Spanish Formula 1 Grands Prix and learning from F1 CEO Bernie Ecclestone’s negotiation tactics, holds strategic advantages. He also retains a 16% ownership stake in Dorna Sports, unlike Formula 1 where Liberty Media owns 100%.
Currently, manufacturers seek a roughly 40% increase in financial subsidies compared to the existing ~€70 million per season. Ezpeleta stressed Dorna’s generous pandemic-era support despite diminished revenues from fewer races, restricted spectator access, and lower television fees.
Teams’ Commitment and Investment Issues
Early indications show all five manufacturers and the six independent teams will renew their participation through 2031. Honda, Yamaha, and Ducati are considered virtually guaranteed to continue, while KTM urgently needs a new contract to maintain investor interest in its MotoGP presence, especially to secure riders Brad Binder and Pedro Acosta’s race slots.
Reports of Günther Steiner fully acquiring the Red Bull KTM Factory Team are overstated; Bajaj Mobility intends only to sell up to 30% of its project to external investors. However, no investor has met Bajaj’s high financial expectations despite extended efforts.
Future Structural Changes to Team Classifications and Equipment
Starting post-2026, the longstanding division between factory and independent teams will be eliminated, mirroring Formula 1’s integrated team structure. Additionally, customer teams will gain rights to commission rolling chassis from suppliers such as Suter Industries or Kalex Engineering, equipping them with leased 850cc engines. This approach echoes the early 2000s MotoGP era, when teams like Team Roberts built motorcycles with externally supplied engines after the Proton V5 engine’s failure.
Despite this potential shift, such customer chassis models are not expected to materialize for at least two to three years.
Investment Interests and Ownership Negotiations
Following the IKON-Tech3 deal, several team owners have received attractive investment offers for partial sales of their team shares. While Gresini Racing, managed by owner Nadia Padovani, has resisted selling despite talks with Lewis Hamilton in 2024, Trackhouse owner Justin Marks is reportedly open to offers. Marks acquired the team in late 2023 for €3 million and currently has proposals exceeding the Tech3 purchase price.
Long-term Contract Discussions and Financial Renegotiation
With Dorna having extended MotoGP and Superbike World Championship contracts with the FIM until 2060, there is discussion about offering MotoGP teams longer ten-year contracts for the first time. However, as one team manager emphasized,
“However, the financial part would have to be renegotiated after five years,”
underscoring continuing financial uncertainties in the sport’s future.
Significance of Ongoing Discussions for MotoGP’s Future
The current negotiations represent a pivotal moment for MotoGP, balancing the financial demands of manufacturers against the economic realities of motorcycle racing. The evolving team structures and potential for longer contracts could reshape the competitive landscape and investment patterns. How these talks conclude will influence the economic stability and global appeal of MotoGP, as well as its alignment with broader motorsport governance practices observed in Formula 1.
