MotoGP has reached a historic agreement with the five factory teams competing in the premier class, setting the framework for the next five seasons and unlocking new flexibility in rider and team dynamics ahead of the 2024 campaign. The deal, confirmed by the World Championship’s governing body, addresses long-standing tensions between the championship and manufacturers over financial structures, technical regulations, and competitive balance.
The agreement, first reported by MotoGP.com, outlines a revised financial model that redistributes revenue from broadcast rights and sponsorship deals to ensure long-term stability for all participants. A key provision allows teams greater freedom in managing rider contracts, effectively “unlocking the transfer market” for the 2024 season, according to a statement from the MotoGP management.
“This agreement represents a turning point for the sport,” said Tom Cosgrove, CEO of Dorna Sports, the company that oversees MotoGP. “It balances the interests of the championship, the manufacturers, and the riders while ensuring the sustainability of the premier class for years to come.”
The five manufacturers involved—Honda, Yamaha, Ducati, Aprilia, and KTM—had previously expressed concerns about the financial risks of competing in MotoGP, particularly with the introduction of new technical regulations in 2024. The new deal includes a guaranteed minimum revenue share for each factory team, as well as a mechanism to adjust payouts based on race results and viewership metrics.
The agreement also addresses the contentious issue of rider movement. While MotoGP has historically limited direct transfers between teams, the new framework allows for more fluid negotiations, provided they align with the championship’s competitive integrity rules. This change is expected to impact high-profile riders such as Joan Mir (currently with Suzuki) and Jack Miller (Ducati), who have been linked to potential moves in recent months.
What Does the Agreement Entail?
The core terms of the agreement focus on three main areas: financial distribution, technical regulations, and rider contract flexibility. Under the new model, 60% of broadcast revenue will be allocated to the factories, with the remaining 40% distributed to teams based on performance metrics. This contrasts with the previous structure, which allocated 50% to factories and 50% to teams.
Technical regulations remain largely unchanged for 2023, but the agreement includes a provision for a “regulatory review” in 2024, allowing manufacturers to propose adjustments to aerodynamics, engine specifications, or tire compounds. This review process aims to address concerns about the increasing cost of development while maintaining the sport’s technical prestige.
“The manufacturers have always been the lifeblood of MotoGP,” said Bruno Irsara, CEO of Ducati Corse. “This agreement ensures we can continue investing in innovation without compromising the financial health of the teams that race our bikes.”
The rider contract flexibility clause has drawn particular attention. While direct transfers between teams are still prohibited, the agreement allows for “shared rider programs” and “technical collaboration” between factories, provided they do not undermine the competitive balance. This could enable riders to test bikes from multiple manufacturers or participate in joint development programs.
Why Is This Significant?
The agreement marks the first major overhaul of MotoGP’s financial and regulatory structure since 2016, when the championship introduced a cost-reduction package to attract smaller teams. At the time, the move was seen as critical to preventing a collapse of the premier class, which had faced a potential exodus of factories due to rising expenses.
Analysts note that the new deal addresses a key concern for manufacturers: the need for long-term financial predictability. “MotoGP has always been a high-risk proposition for factories,” said Simon Cope, a motorsport economist at the University of Oxford. “This agreement reduces that risk by guaranteeing revenue streams and providing a clear path for technical development.”
The implications for riders are equally significant. With greater flexibility in contract negotiations, top-tier riders may gain more leverage in securing favorable terms. This could lead to longer-term commitments from star riders, reducing the frequency of high-profile departures that have disrupted teams in recent years.
“For riders, this is a win-win,” said Marco Simoncelli, a former MotoGP rider and current analyst for Motorsport.com. “They now have more options to find the right fit, while teams can tailor their lineups to maximize performance.”
What’s Next for MotoGP?
The agreement is set to take effect immediately, with the first major test coming in the 2024 season. Key dates include the release of the 2024 technical regulations in December 2023 and the opening round
