MotoGP survives against all odds in a situation marked by a pandemic, which means a global health crisis. The kind of event that we want to avoid when organizing a world championship. An unprecedented situation hit the developer Dorna hard, whose responsiveness made it possible to save the furniture. Waiting for better days. Here are the figures in general and the shock taken by the teams in particular. There is damage, but the house is still standing…
La health crisis has generated as collateral damage undesirable economic effects which are all ingredients of an economic crisis. An observation valid in all sectors and for everyone. But in motorcycle Grand Prix, how is this calculated? The site Moto sprint looked into the issue and materialized the slump. And it starts with a comparison: if the Formula 1 suffered a drop in turnover of 1,7 billion euros in 2019 to 963,4 million euros, a drop of Present in several = 43,4%, MotoGP turnover fell from 390 million euros to 215 million euros, a drop of Present in several = 44,9%.
Dorna Sports had achieved 2019 million euros in revenue on the circuits in 117, or 30% of its turnover. Considering that 2 spectators were counted on the circuit during the 863 Grands Prix of 113, each spectator brought in just under 19 euros for Dorna. The rest went into the coffers of local promoters, who also had to bear the organizational costs.
In the 2019 budget, television rights represented Present in several = 45%, or 175,5 million, while a further 78 million euros (20% of the total) came from sponsorships and advertising and the remaining 5% from merchandising and direct sales. The whole thing generated a net profit of 57 million euros, up compared to 2018. In 2020, the year of the pandemic, contributions from local promoters would have fallen to 30 million (-77%), television rights at 129 (-30%), and the sponsors’ mite at 56 (-28%).
And again, it could have been worse. Carmelo Ezpeleta indeed recalls the context of the first quarter of 2020… “ We considered options A, B and C. The A planned around fifteen races, the B for around ten using only two or three circuits and the C to do all the races on the same circuit in five weeks. Fortunately, we managed to reach the A ". The boss of Dorna then confirms: “ the impact was enormous and we were able to withstand it thanks to the strength of Dorna and its shareholders ».
In 2020 MotoGP also reduced its costs
A shock also suffered because drastic measures were taken to safeguard the paddock ecosystem. On Motorsport-total, Johann Stigefelt, representing Petronas explains: “ when you budget for a normal season, you more or less know the fixed costs and the operating costs », recounted the team director. “ Last year was very difficult in terms of budget planning because we didn't know the exact costs."
In the end, there was only 14 races during the 2020 season, but there was a long period of planning uncertainty. By the end of July it was certain that there would be no overseas races. As no guests were allowed in the paddock. The teams saved on hospitality. On the other hand, tests PCR had to be organized and paid for all team members to enter the paddock. This is still the case at the start of 2021, although most of the Qatar paddock has been vaccinated.
« In the previous year, costs increased in some areas, in others they decreased ", explain Stigefelt. " For this year we were hoping it would be a more normal year, but it's not the case. Qatar was a big expense for us because we were there for a month with a lot of employees ».
« We always have a reserve and a contingency plan if you need more budget »Says Stigefelt. " We tend to stay under budget, but that's not so easy these days ". When it became clear a year ago that there would be no full schedule in 2020, a number of cost-cutting measures were decided. Engine development was frozen in MotoGP, and development was also halted in the other two categories.
« We have reduced costs overall, especially because many technical components are frozen. We save costs, especially in Moto2 and Moto3 ", confirms Stigefelt who adds: “ Honda in Moto3 does not supply new motorcycles. Kalex in Moto2 remains with the same chassis. We can still use many parts from 2020. We save money technically and in terms of operating costs ". It remains to be seen whether the planned overseas races can take place in fall 2021. If canceled, teams in all classes would save high travel costs. We will recall, on this subject, that the journey towardsAustralia is already to be forgotten for MotoGP, barring a sensational political turnaround.
