– On the morning before the United States Grand Prix in Austin, a summit meeting took place between the leadership of the MotoGP World Championship and the manufacturers to discuss the commercial agreement for the period from 2027 to 2031. An agreement failed primarily due to financial differences.
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At the Circuit of The Americas (COTA), the most important decisions are usually made on the ground floor of the building where the pits are located. Most offices there have windows facing the paddock.
On Sunday, a few hours before Marco Bezzecchi continued the flawless winning streak since the start of the season, all windows were open except for one. There, a curtain blocked the view from curious eyes and hid who was behind it.
In this room, the top officials hoped to define the commercial framework for the next five years, at least through a symbolic handshake between the manufacturers (MSMA) and the MotoGP Sports Entertainment Group (MSEG).
Motorsport.com Spain, a sister platform of Motorsport-Total.com in the Motorsport Network, learned, however, that the gap between the two sides was too large for an agreement at that time.
The matter remains unresolved. Negotiations must be resumed. They have already been dragging on for more than a year. The present contract will bind all teams of the premier class with Liberty Media, the rights holder, for the period from 2027 to 2031.
It will define the rights and obligations of both sides, with financial conditions being the biggest point of contention between the parties involved. The teams are demanding the introduction of the Formula 1 model, i.e., a percentage share of profits.
MSEG, on the other hand, wants to stick to the previous pattern, which provides for fixed payments regardless of total revenue. The latest proposal amounted to around eight million euros, distributed across various compensation components.
This corresponds to an increase of just under one million euros compared to the current contract, which expires at the end of the year. The teams consider this increase insufficient and have communicated this unmistakably to both Carmelo Ezpeleta and Carlos Ezpeleta so far.
Meeting with Liberty CEO Chang leads to no agreement
On Sunday in Austin, they also addressed this message to the top officials of Liberty Media, led by CEO Derek Chang. This meeting could mark a change in mood in the previously deadlocked process.
The situation has escalated because the manufacturers have recognized this moment as a unique opportunity to push through their demands, and not just because the current contract expires in eight months.
In addition, there is the special situation in which the World Championship finds itself following the takeover by Liberty Media. So far, the management level of the entertainment group has largely stayed out of operational decisions.
Nevertheless, there is a widespread view in the paddock that this could change after the signing of the new contract. This is considered the equivalent of Formula 1’s “Concorde Agreement”.
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Aware of the importance of the Sunday meeting in Austin, the MSMA members met for a joint dinner the previous Saturday. The meeting was initiated by Ducati and organized by Aprilia. Each brand sent several representatives.
Particularly noteworthy are Michele Colaninno (CEO of the Piaggio Group), Claudio Domenicali (CEO of Ducati), and Gottfried Neumeister (CEO of KTM).
Honda sent Yuzuri Ishikawa (Head of MotoGP) and Alberto Puig (Team Manager), while Paolo Pavesio (Director) led the Yamaha delegation. At this unofficial meeting, the strategy for the decisive talk the next morning was established.
The meeting on Sunday began at 11 a.m. and lasted about an hour. Shortly after noon, about two hours before the start of the MotoGP race, the manufacturer heads left the offices and formed a circle, visible to everyone in the paddock, where they discussed the situation for a good 20 minutes.
Positions are far apart
Motorsport.com Spain assumes that the MSMA considers the current draft contract unacceptable as it contains a number of restrictions. In addition to the financial conditions mentioned above, there are also other clauses regarding the ownership of grid slots.
This also includes the scope for action in the allocation of grid slots, especially regarding the possible entry of investors. The financial aspect naturally runs through all areas of the ongoing debate.
In the area of obligations, MSEG is calling on the teams to strengthen their marketing and communication departments in order to expand the reach of the championship as much as possible.
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In addition to the demand to hire more staff for this purpose, the teams are also being asked to provide real, functional MotoGP prototypes for promotional events.
Furthermore, on the commercial side, the teams are being asked to raise the level of their guest hospitality. This particularly affects those teams that use communal restaurants at overseas races.
“The proposal currently before us provides for an increase of one million euros, and everything being asked of us already costs significantly more than that,” says a source familiar with the negotiations to Motorsport.com Spain.
Under these circumstances, it is nevertheless the will of the promoter, the manufacturers, and the independent teams to reach an agreement, because everyone wants to be on the grid in 2027. First, the MSMA, which supplies the motorcycles, must sign with MSEG.
Then it will be the turn of the remaining teams. It remains to be seen whether the protagonists of this encounter will ultimately be able to find a common middle ground, or whether someone from a higher authority will have to intervene to untie the knot.
