Sunday, July 21, 2024

Investigation: Effects of the Pandemic on the World Championships


Half wheels, less spin, and even more revenue contraction: Since the Covid-19 pandemic, MotoGP has suffered a stronger hit than the first class of cars. Formula 1 suffered a drop in revenue from $ 2.022 billion (€ 1.7 billion) in 2019 to $ 1.145 billion (€ 963.4 million) equivalent to a 43.4% decrease. For MotoGP motorcycles, on the other hand, revenue increased from 390 million euros to 215, or there was a decrease of 44.9%.

MotoGP calendar 2021: from Finland, doubles Austria


According to the Spanish site Palco23, which specializes in economic information related to sport, Dorna Sports generated € 117 million in race track profits in 2019. This is 30% of its turnover. Given that 2,863,113 spectators were counted in the ring at 19 GP for 2019, each spectator earned less than € 41 at Dorna. The rest remained in the coffers of the local promoters, who also had to bear the organizational expenses. In the 2019 budget, TV broadcasting rights accounted for 45%, worth 175.5 million, while another 78 million euros (20% of the total) came from sponsorship and advertising and the rest 5% from marketing and direct sales on the occasion of each. GP. All this resulted in a net profit of € 57 million, compared to 2018. IL SOLE 24 Ore recently published slightly higher numbers for 2019: € ​​129 million from local regulators, € 183 million for TV rights and the same 78 from a commercial sector. According to the official Italian economic newspaper, in 2020 for the epidemic, the contributions of domestic promoters would have decreased to 30 million (-77%), television broadcasting rights to 129 (-30%), and sponsorship to 56 (-28%).

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Today, with a calendar close to normal, the worst seems to be behind us, though Carmelo Isabellita, Who has been the General Manager of Dorna Sports since 1994 and Managing Director since 1998, stated on the occasion of the Europa Press Sport Breakfasts stay that he had a plan to deal with a worse situation:For the last World Championships, we thought of Options A, B, and C. A fought around fifteen races, B for dozens of races using only two or three rings and C to do all the races in the same circuit in five. Weeks. Fortunately, we managed to achieve the first class. ”. Even if only two sites were opened to a smaller audience: Misano, for GPs, and Le Mans. At the same meeting, our first turn avoided answering questions about the economic impacts of the pandemic, but did not hide the fact that it was “a major impact that we can bear thanks to the strength of our role and its shareholders.”

Then he warned that the recovery would come once the “normal seasons” began, that is, with free access to the public in the stands and in the meadows. Instead, talk to Sole 24 Ore Enrique Checkers, CFO (CFO) of Dorna since 2001: “Due to the pandemic, 2020 has been a difficult year. Organizing tournaments without spectators on site has greatly reduced revenue for episodes, as local promoters did not sell tickets. We also weren’t able to provide hospitality services to the sponsors. Reduction of 20 GP to 15 in Income Received by Broadcasters. Come get spiegato Ezpeleta in a recent interview with rilasciata for a forum of famous Spanish brands: Our league has reached 433 million homes through agreements concluded with various broadcasters, reaching more than 200 countries that receive the signal live. The media coverage gathers 9,557 representatives from 55 different countries..

However, MotoGP is only the spearhead of Dorna Sports that organizes seven other two-wheeled tournaments: the Superbike World Cup, the MotoE World Cup, the CEV, the Asian Talent Cup, the British Talent Cup, the Northern Talent Cup and the Red Championship. Bull MotoGP Rookies Cup. This intense activity resulted in the acceptance of our Sports role in the Forum last October for Famous Spanish Brands (FMRE), an alliance between the public and private sectors of the main Spanish companies with leading brands in their respective sectors.

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Before our role Sports, only four sports entities were accepted, all football: Real Madrid, Barcelona, ​​Atletico Madrid and La Liga (first and second division chaired by Javier Tebas). Ezpeleta has always defined a domino effect in Foro de Marcas Renombradas Españolas: “ Globalization not only brings benefits to the tournament itself, it also ensures that fans grow in less mature markets or in major countries or consolidate in more experienced markets (such as the United Kingdom, France, Germany, Italy, Spain, the United States, Brazil, Japan, Malaysia or Thailand). Or Australia or Indonesia), but they also create an untold opportunity for the development of the host region. The general practitioner attracts an average of 150,000 spectators each weekend, and about 107,000 of them spend at least one night away from home.Stimulating domestic tourism and encouraging the hospitality sector to operate at full capacity during the weekend of the Grand Prix. “.

Digital advent

Business continuity appears to be guaranteed by contracts – in effect through 2026 – signed with manufacturers and teams: All champions have remained at the World Championships in times of a pandemic and will not leave them for the next five years. This is also due to the “Team Rescue” contribution introduced a year ago, which is beneficial to smaller teams. Meanwhile, our role has announced internal restructuring, with the creation of a new global trade zone headed by Manuel Arroyo, the historic head of “media” activities. A recent context to exit, 20 years later, from Pau Serracanta from the commercial sector. Dorna has also accelerated digital transformation at this point, The key to its strategic plan. The goal is to expand the fan base on social media, which exceeds 30 million people, with Instagram increasing from nine to ten million followers in five months.

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Snapchat, TikTok, and Twitch accounts are heading in this direction, creating MotoGP Fantasy (Fantasy Football Applied to GP), as well as video games and even the MiniGP Global Series. This latter idea was born not only to produce the samples of tomorrow, but also to bring in different segments of the population, both young and parents, to turn them into enthusiasts to be “raised” in the coming decades. Many ways with one goal: to bear the impact of difficult and unexpected situations

MotoGP: The Mugello GP will be held behind closed doors


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