How Much Does it Cost to Host a MotoGP Race?

03/09/2011 @ 10:58 am, by Jensen Beeler2 COMMENTS

How Much Does it Cost to Host a MotoGP Race? Nicky Hayden Aragon GP 2010 635x423

Dorna keeps pretty tight controls on what information gets out about its business; but when dealing with public entities, some of those figures are bound to come forth. Such is the case with Motorland Aragon, the Spanish track that recently locked in MotoGP through the 2016 season. The cost of hosting MotoGP for the next six years? €41 million. That figure breaks down into €6 million for the 2011 round, €7 million for the 2012 season and subsequent years as well.

Bear in mind that Motorland Aragon is paying Dorna €7 million a year, not the other way around, so that figure sounds like a pretty rotten deal for the Spanish track. But don’t start the pitty party yet though, as estimates from last year place the total economic value of Aragon hosting the 2010 MotoGP World Championship at around €40 million.

While local business suggest that figure is more like €30 million, it’s a lot of coin for hosting a single race. Despite which figure you choose to believe, the Spanish community’s decision to build a track in the middle of Spanish nowhere is proving to be a prudent business decision, as the hosting cost for one year nearly makes the contract break even for the whole term (meaning the following five years will be pure gravy train profits).

According to Motorland Aragon, the newest Spanish track is also benefiting quite well compared to its three other fellow Spanish MotoGP venues, who are having to pay a bit more to Dorna to host the MotoGP World Championship. Both Jerez and Valencia are reported as paying €8 million a year to Dorna to host MotoGP, although admittedly those venues hold more race fans, and have more established metropolitan areas for people to spend money in once the race is over.

Source: Motocuatro via MotoMatters

Comment:

  1. Wow. I wrote earlier that I didn’t see how it was possible to lose money on that race, but those sanctioning fees are pretty high.

    The multiplier for the net economic benefit is bogus, too. This math’s been proclaimed since forever, but it’s totally fallacious, on its face. (No, you’re not a pervert, that _does_ read like a sexual metaphor. But it isn’t.) Look, everyone makes these claims that 80,000 tourists come and spend 200 or 300 euros each, but the economic benefit is 2 or 3X greater because the people who _get_ that money spend it in turn. But the GNP of Spain is the total value of all Spanish goods and services, not 2 or 3X that value. If you were realistically going to lay claim to secondary and tertiary transactions, you’d have to _deduct_ the transactions that sent money away from the jurisdiction — and that’s something the promoters and business-development officers never do. A tourist’s euro isn’t worth any more or less than a local’s.

  2. bemer2six says:

    What i would like to know is what would it cost to sponsor a bike for a full year??