Breaking down Dorna’s €9m MotoGP financial aid package

Due to the enforced racing hiatus caused by the coronavirus pandemic, MotoGP promoter Dorna Sports has announced a financial package to sustain the paddock's many smaller outfits.

Breaking down Dorna’s €9m MotoGP financial aid package

Last week, Dorna confirmed it would be offering financial assistance to all independent MotoGP teams – LCR, Pramac, Avintia, Petronas SRT, Tech 3 and Gresini Aprilia – as well as the squads in Moto2 and Moto3. The total cost of the package, which is due to be rolled out for at least the next three months, equates to €9.075 million.

Below is the breakdown of this package, but first an explanation of where we’re at right now with the schedule...

When will the MotoGP season start?

MotoGP did manage to get its Moto2 and Moto3 season-openers in Qatar last month in the books, courtesy of both championships already being in the country for their final pre-season test a week before the grand prix.

Read Also:

But the MotoGP race had to be cancelled, with the following rounds in Thailand, America, Argentina, Spain (Jerez) and France all postponed. 

It is expected that the Italian GP at Mugello at the end of May and the Catalan race in Barcelona at the start of June will also be postponed. 

Since the postponement of the Jerez race, Dorna has not issued a new calendar and is currently evaluating all options – with CEO Carmelo Ezpeleta recently saying he would be “delighted” with a 10-race championship. 

At present, there is no telling when MotoGP will get underway again and what the schedule will look like when it does. 

The financial support for MotoGP

Teams need racing to generate income, whether that comes from the commercial rights holder itself or – more crucially – from sponsors. 

With no racing currently happening, no income is being generated, and teams still have staff to pay during this time. Currently, 11 teams compete in MotoGP.

This is split into the five main manufacturer outfits: Yamaha, Honda, Ducati, Suzuki, KTM. The other six are dubbed ‘independent’ teams: Petronas SRT Yamaha, Pramac Ducati, Avintia Ducati, Tech 3 KTM and Gresini Aprilia.

The latter is a slight anomaly, as Aprilia is a full factory entrant, but has run in conjunction with Fausto Gresini’s squad since 2015 as a clever way of benefitting the financial boost satellite teams gain from the promoter as written into the regulations. 

As a result, Aprilia qualifies for Dorna’s financial support measures, as do KTM interestingly because it – like Aprilia – is designated as a concession manufacturer – which is a new manufacturer or manufacturer that hasn’t won a dry MotoGP race since 2013.

For at least the next three months, Dorna will inject €250,000 into each independent team and KTM, equating to a total of €4.5m until June.

Honda, Yamaha, Ducati and Suzuki are excluded from this for now as they are deemed to be able to support themselves better – though Dorna is in contact with all and keeping abreast of any potential changes in their situation. 

The first payment is reported to have been made last week.

The financial support for Moto2/Moto3

Start action, Enea Bastianini, Italtrans Racing Team leads

Start action, Enea Bastianini, Italtrans Racing Team leads

Photo by: Akhil Puthiyedath

Dorna takes great pride in its feeder classes, perhaps more so than most other world championships in motorsport.

In 2020, 16 teams race in Moto3 while 15 compete in Moto2. Their financial situation is much more precarious than their MotoGP counterparts, with the majority of those teams’ finances coming from sponsorship. Dorna has pledged a total of €775,000 for all of its Moto3 teams and €750,000 for its Moto2 squads, which is divided up as €25,000 per rider per team.

Over the next three months, Dorna will inject a total of €4.575m into Moto2 and Moto3 in a bid to keep them stable during this unprecedented situation. 

What happens after three months?

In an ideal world, coronavirus will be well into its last throws and the world will be well into returning to normal, with racing resuming sometime in July. 

If that proves to be the case, the money Dorna has given out to teams will be deemed an advance on its end-of-season participation payouts. However, in the more likely scenario that the hiatus continues for longer, Dorna – working with its parent company Bridgepoint Investment, as well as the Public Pension Funds of Canada – will offer out a total of €3m to teams.

With Dorna also not generating the income it would expect due to the lack of racing, it’s natural that its financial aid would have to decrease in order to ensure its own survival.

shares
comments
Dorna would be “delighted” with 10-race MotoGP season
Previous article

Dorna would be “delighted” with 10-race MotoGP season

Next article

Ducati doubts 10-round MotoGP season is feasible

Ducati doubts 10-round MotoGP season is feasible
Load comments
The Rossi-less future MotoGP must now navigate Prime

The Rossi-less future MotoGP must now navigate

Motorcycle racing's greatest showman has left the stage, as Valentino Rossi calls time on his remarkable career on two wheels. But in his successors, all of whom were inspired by 'the Doctor', grand prix racing has vibrant new acts to keep us hooked

MotoGP
Dec 4, 2021
Valentino Rossi’s 10 greatest MotoGP races Prime

Valentino Rossi’s 10 greatest MotoGP races

As the Italian legend finally bows out and retires from MotoGP, it marks the end of one of the most incredible careers in motorsport history. Here is Motorsport.com's pick of his best rides and the stories behind them

MotoGP
Dec 3, 2021
How Ducati has drawn first blood in the 2022 MotoGP title race Prime

How Ducati has drawn first blood in the 2022 MotoGP title race

The 2021 MotoGP season may have only just ended but preparations for 2022 are well underway following a two-day test at Jerez this week. Ducati has hit the ground running while a lack of progress dominated Yamaha’s and world champion Fabio Quartararo’s test. While no battle lines have been drawn yet for 2022, it appears Ducati has already drawn first blood...

MotoGP
Nov 20, 2021
Why Suzuki's quest for a new MotoGP boss may be too late Prime

Why Suzuki's quest for a new MotoGP boss may be too late

Suzuki is on the search for a new team manager after its decision not to replace Davide Brivio at the start of 2021 was backed up by its unsuccessful bid to help Joan Mir defend his 2020 MotoGP world title. But whoever Shinichi Sahara appoints next, it may have already come too late to convince Mir to stick with the project

MotoGP
Nov 19, 2021
How Rossi got the perfect send-off to his MotoGP career Prime

How Rossi got the perfect send-off to his MotoGP career

The greatest chapter in MotoGP history came to a close at the Valencia Grand Prix as Valentino Rossi bid farewell after 26 seasons of grand prix racing. While his run to a strong 10th was a pleasing end to his time in MotoGP, it was what happened at the front of the grid that capped the Italian's ideal send-off

MotoGP
Nov 15, 2021
Why MotoGP's under-fire graduate has a point to prove Prime

Why MotoGP's under-fire graduate has a point to prove

OPINION: MotoGP-bound Darryn Binder was already under the microscope as his jump from Moto3 to join RNF's new top-class team was announced. But his crash with title hopeful Dennis Foggia caused significant consternation among the ranks - with many current riders suggesting the top level should be harder to break into as a result

MotoGP
Nov 9, 2021
How Portugal exposed the biggest threat to Quartararo Prime

How Portugal exposed the biggest threat to Quartararo

Fabio Quartararo’s first DNF of his title-winning 2021 MotoGP season couldn’t have come at a better time. But the events of the Yamaha rider’s Algarve Grand Prix exposed the M1’s well-known major weakness, which could threaten his championship defence given the increasingly Ducati-heavy makeup of the grid heading into 2022

MotoGP
Nov 8, 2021
What's really fuelling junior bike racing's dangerous aggression Prime

What's really fuelling junior bike racing's dangerous aggression

The pressure shouldered by young riders is at the root of the increased on-track aggression seen in lower categories of late, which motorcycling's governing bodies want to curb with new rules. But will stopping under-18s from racing in the world championship and capping grid sizes prevent the often desperate acts of youths pursuing their MotoGP dreams?

MotoGP
Nov 2, 2021