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Money: Motorcycle Racing’s Biggest Problem

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What is the biggest problem in motorcycle racing today? Is it the predominant role electronics are playing, ruining the racing? Is it the ever more restrictive rules imposed, killing bike development and the spirit of Grand Prix racing?

Is it the lack of competitive machinery, making it impossible for anyone but a factory rider to win a race? Or is it the dominance of the two top manufacturers, driving costs up and discouraging wider manufacturer participation?

You can point to all of those and more as being an issue, but they pale in comparison to the real problem the sport of motorcycle racing faces at the moment: Money.

Specifically, the lack of it, and the inability of almost everyone involved in the sport to find ways of raising any. All of the ills of both MotoGP and World Superbikes can be traced back to this single failure.

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News

Investcorp Buys 80% of Dainese for €130 Million

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A story we have been chasing for some time now, Lino Dainese has finally found a buyer for his namesake company, Dainese. The purchaser is the aptly named private equity firm Investcorp, which is headquartered in Bahrain, and has additional offices in New York, London, Riyadh, and Abu Dhabi.

Buying 80% of the company’s stock for a reported €130 million, Investcorp’s valuation of Dainese would therefore be set at €162.5 million. The other 20% of the company is retained by Lino Dainese, himself.

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News

Mercedes-AMG Acquires 25% of MV Agusta

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One of the worst-kept secrets in the motorcycle industry, Mercedes-AMG has now officially acquired a 25% stake in MV Agusta S.p.A. The news also sees Mercedes-AMG and MV Agusta signing a long-term partnership agreement, as well as collaboration on future sales and marketing efforts.

Neither Mercedes-AMG, nor MV Agusta, are talking the price of the 25% investment, though rumors peg the cost of the deal around €30 million — a very good valuation compared to the €747 million Audi paid for Ducati Motor Holding just two years ago. Also as a part of the agreement, Mercedes-AMG will appoint one member to MV Agusta’s board of directors.

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MotoGP

Report: COTA Brings Nearly $900 Million to Austin

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In a report commissioned and released by the Circuit of the Americas (COTA), and prepared by the Greyhill Advisors, it would seem that hosting MotoGP and other events at the newly built track was a benefit to the local Austin economy this year, to the tune of $897 million.

The Greyhill’s analysis covers all of the events held at COTA, such as Formula One, MotoGP, and the ESPN X-Games, and it also includes all track rentals, concerts, and other events at the track as well.

Through these events, 1.1 million people attended COTA, whose operations directly account for $166 million of the $897 million brought to the area. The remaining $731 million comes from money spent by attendees outside of the track.

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News

MV Agusta / Mercedes-AMG Deal Not Done Yet

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Rumors have been hot and heavy that MV Agusta will announce at EICMA that Mercedes-Benz will become a minority shareholder in the Italian motorcycle company. Those talks of investment have been confirmed by our friends at Canada Moto Guide, however in talking to Giovanni Castiglioni, the young Italian said the deal hasn’t been completed yet.

Getting a chance to bend the ear of Castiglioni at the Dragster RR/Brutale 800 RR launch this weekend, CMG’s Costa Mouzouris was told by Castiglioni that “if it happens, I would be the manager of the year; you can imagine it is a big deal for a small company, family owned, to sell a minority share to a huge company like Mercedes.”

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News

Ducati Scrambler Will Be “Made in Thailand”

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Almost four years ago, we reported on Ducati opening a new assembly plant in Thailand. The move, which peeved Ducati’s factory workers, would see bikes destined for the Southeast Asian market assembled in the Thai plant, thus side-stepping many of the region’s aggressive tariffs on motorcycles.

Nearing the end of 2014 now, and our Bothan Spies report that the Ducati Scrambler models will be the first motorcycles assembled in Ducati’s Thai plant that will then be shipped to the world market (sans the European market, which will get bikes still from Bologna, according to Moto.it) — a move that comes right after Ducati reached a new contract with its workers and unions, which sees the factory employees working fewer hours at higher wages.

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News

BRD Motorcycles Is Now Alta Motors

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We generally try to avoid reprinting the press releases of companies. Call it spin control, call it journalistic integrity, call it an over-fascination in hearing ourselves type — it just isn’t something we’re keen to do.

Every now and then though, a company’s press release really is the most succinct and well-worded form of the information. As is the case with BRD Motorcycles, which is now known as Alta Motors.

We could wax on about the various branding strategies at work here, the importance of a company’s name, and how BRD’s recent $4.5 million Series A funding is surely to blame for all this…but instead, Alta Motors release just a basic honest answer to it all. Read it after the jump, and yes…the above image was included in the press release.

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News

BRD Motorcycles Raises $4.5 Million in Series A Funding

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It has been a long time coming, but we have some good news from the folks at BRD Motorcycles, as the electric motorcycle startup has just closed a $4.5 million Series A funding round.

The investment round was led by Spanish investment firm Modara Technologies, which was joined by Cedarville Investments, Tesla Motors founders Martin Eberhard & Marc Tarpenning, and Pedro Zapata Gil, the CEO of Baluarte Real Estate in Spain.

To-date that makes $8.2 million in capital raised by BRD, and now the San Francisco startup will be able to go ahead with production on its BRD RedShift electric dirt bike and supermoto offerings. BRD will show the production-ready RedShift MX & RedShift SM at the AIMExpo in two weeks’ time, which will retail for $14,995 and $15,495, respectively.

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Bikes

Brammo eCruiser & Other Models Spied in Investor Pitch

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Brammo continues to build upon its war chest of investment, and has turned to crowd-funding site EarlyShares for help in that regard. The site is targeted towards Angel-type investors, and is along the lines of a Kickstarter-style site for the wealthy and investment-minded.

The news that a company like Brammo is looking to raise more capital is nothing new, nor is it terribly noteworthy, but the documents provided to EarlyShares investors are certainly worth chewing on by two-wheeled enthusiasts.

Perhaps the most interesting aspect is a diagram of Brammo’s planned model lineup, which briefly appeared on EarlyShares; and among other things, shows an eCruiser model from the Oregonian company. Boom goes the dynamite.

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News

The Most Ridiculous Thing I’ve Ever Seen in This Industry

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I have seen a lot of things in the motorcycle industry since I started Asphalt & Rubber, but never before have I seen something like this. During the autumn months, it is not uncommon for A&R to receive tips about new motorcycle models that are about to debut, and today was seemingly no different.

This morning we got an enthusiastic email from a purported regular reader (make that two readers now), asking why we weren’t covering the leaked details on the supercharged Kawasaki H2, which were apparently “going viral” all over the internet, as the email told us. To give us proof of that assertion, they included in the emails links to a Facebook page for a new web forum for the H2, which is where the leak apparently occurred.

A quick check on our massive RSS feed (roughly 600 publications now) showed the viral story had only been picked up by one other publication, Motorcycle.com. MO ran the story with the headline “Inside Info About Kawasaki’s Radical H2 Sportbike?” — which had been written by the ever loveable “Motorcycle.com Staff” author, and qualified with the profession’s ubiquitous “?” phrasing.

Our friends at MO certainly do a bit of traffic (I say that with sincerity), though I normally wouldn’t use a single publication covering a story as an indication of that story going viral, but ok whatever…hyperbole is part of the game.

Like any good editor though, I dove into the story deeper. What I found has me supremely worried.

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