Manufacturers stand up to Liberty in Jerez as MotoGP changes negotiating tack

Dorna, the promoter of the MotoGP World Championship that rebranded as MotoGP Sports Entertainment Group (MotoGP SEG), organised an event in Jerez on the eve of the Spanish Grand Prix. The annual event called “Casual Dinner: An evening with the MotoGP family”, took place this year at the imposing Bodegas Gonzalez Byass, in the Andalusian city.

MotoGP manufacturers, teams, sponsors, and commercial partners were among those invited to the evening, which was hosted by the ownership of the world championship, which was represented by Derek Chang, president and chief executive officer of Liberty Media.

Alongside him was championship CEO Carmelo Ezpeleta, and his son Carlos, the championship’s sporting director. The three were accompanied by senior executives of the series and by some star guests. The spotlight was focused mainly on Christian Horner, former team principal of the Red Bull Formula 1 team.

Invitiations were sent weeks in advance, table plans were set and anticipation was high ahead of the annual gathering.

However, the big surprise of the evening was that three of the five manufacturers didn’t show. Yamaha, Aprilia and KTM stood up the assembled MotoGP bosses without prior notice.

What’s more, Ducati CEO Claudio Domenicali, general manager Gigi Dall’Igna and sporting director Mauro Grasilli all also missed the gathering. The representation of the Borgo Panigale company was made up of Davide Tardozzi, the team manager of the factory squad, and Artur Vilalta, the communications director of the structure.

Claudio Domenicali, Ducati Corse CEO, was one of several executives to skip the MotoGP event

Photo by: Gold and Goose Photography / LAT Images / via Getty Images

Honda did the same, sending no senior executive, only team manager Alberto Puig, and two members of the press office.

The empty tables in the centre of the dining room were the manufacturers’ response to MotoGP’s latest counterproposal to the draft of the commercial agreement that the promoter, on one side, and the manufacturers and teams, on the other, have been negotiating for more than a year.

This reaction, a further twist that considerably increases the pressure on the back-and-forth, did not sit well with the new owners. 

Change in strategy

Until now, the negotiation between the five manufacturers and the championship for the new ‘Concorde Agreement’, the deal that will govern the commercial framework between both parties from 2027 until 2031, had managed to keep the constructors united. With this, they sought to have a certain strength so that some of their demands would be met.

MotoGP SEG’s offer is limited to a linear economic increase in the championship’s contribution to each of the 11 teams on the grid. In return, it demands greater involvement from the teams in matters of hospitality, marketing, image, communication and social media.

The manufacturers, grouped under the unity of the MSMA, which is led by president Massimo Rivola (CEO of Aprilia) and Lin Jarvis, former managing director of Yamaha, are asking for a change in the system, leaving behind the current fixed allocation per season to instead become part of the overall business.

MotoGP manufacturers want a say on where the series races

Photo by: Jose Breton - Pics Action - NurPhoto - Getty Images

The constructors understand that MotoGP must be brought in line with other major sports competitions, such as the Champions League, the NBA or the NFL, where teams receive variable amounts depending on results, a percentage of the TV rights and, most importantly, they are part of the governance of the championship when it comes to decision-making.

One example that demonstrates this is the drafting of the calendar, which has become a thorn in the side of the negotiation. The MSMA has asked the series to be able to intervene, proposing dates and circuits, but the promoters, for the moment, refuse.

After the no-show at the Friday dinner in Jerez, relations between both sides have become so tense that, within a few hours, MotoGP SEG decided to change its strategy, starting negotiations separately, individually with each manufacturer and team.

The initial response could not have been more positive for MotoGP SEG, since Honda, the constructor that has the most muscle of all, has guaranteed its signature. There has also been a rapprochement from Ducati; as well as from the satellite teams of both houses, VR46 and Gresini (Ducati), and LCR (Honda), and also from Tech 3 (KTM). For the moment, Yamaha is the manufacturer that remains most firm against the pact proposed by MotoGP, together with Aprilia and KTM.

Motorsport.com understands that MotoGP SEG has set the French Grand Prix in two weeks, as the deadline to reach a joint agreement. If this does not arrive, the promoter will negotiate individually with each involved party to close separate agreements.