MotoGP constructors push for F1-style ‘Concorde Agreement’

MotoGP’s manufacturers have come together with the collective aim of securing a new framework from promoter Dorna and getting a larger share of income from the championship’s commercial rights.

According to information obtained by Motorsport.com, the five constructors held a meeting last weekend at the Czech Grand Prix. They signed a commitment document and appointed Lin Jarvis – former Yamaha director and currently still acting as an advisor – as their spokesperson and representative.

Jarvis and Manufacturers’ Association (MSMA) president Massimo Rivola then met with Dorna CEO Carmelo Ezpeleta to express the manufacturers’ desire to revisit the distribution of the financial assets generated by the championship.

This initiative was originally driven by the factories, but the satellite teams subsequently approved the move too.

Motorsport.com understands that the initial reaction from Dorna’s top executive was one of displeasure. The ‘union’ of manufacturers had anticipated such a response and now hopes for a compromise when negotiations resume, probably at the next event in Austria in August.

Carmelo Ezpeleta, Dorna CEO

Photo by: Marc Fleury

The manufacturers aim to establish a document similar to Formula 1’s well-known Concorde Agreement, which governs the distribution of revenue from F1’s commercial rights among its teams.

While the exact contents of the Concorde Agreement remain confidential, it is known that the contract bases the amount distributed on the end-of-season standings. For example, finishing fourth instead of fifth can mean a difference of more than €10 million. In addition, participants receive around 50% of the profits, although this percentage can vary depending on total revenue.

The current agreement expires in 2025, but the next one – covering another five-year period starting in 2026 – has already been signed by all relevant parties.

The original Concorde Agreement, established in 1981, notoriously caused a much fiercer standoff in the F1 paddock than that anticipated in MotoGP. At that time, the goal was to end the open conflict between the Federation Internationale du Sport Automobile (FISA) and the Formula One Constructors' Association (FOCA). The rise of ringmaster Bernie Ecclestone led to a renewal of the agreement in 1987, following the creation of Formula One Management (FOM).

Bernie Ecclestone, Brabham Team Owner talks with Jean-Marie Balestre, President of FISA

Photo by: Sutton Images

In MotoGP, the constructors are looking to open a dialogue to improve two key aspects they consider vital for the growth that Dorna is asking of them. The first, logically, revolves around the money they receive from the rights holder. Currently, only satellite teams receive a fixed amount of €2.5 million per bike they lease (€5 million total).

The second point involves ownership of the grid slots that allow teams to compete in the world championship. Until now, these slots have been owned by Dorna, which grants them to teams for a period – most recently five years that expire at the end of 2026. The teams are seeking to gain legal ownership of these slots, or at least to secure guarantees that would allow them to make decisions without depending entirely on Dorna’s discretion.

This move from the manufacturers comes shortly after the acquisition of Dorna by Liberty Media, which also owns the commercial rights to F1. The deal was valued at €4.3 billion, with the purchase contract specifying that Ezpeleta would remain as CEO. Many in the paddock believe there is no clear connection between the championship’s total revenue and the amounts received by the teams.

Since Liberty’s intent to acquire MotoGP became public, interest from investment funds in purchasing independent teams has surged. However, Dorna currently values each team at around €20 million – an difficult amount to justify when the promoter remains the legal owner of the grid slots.