After a week of debate and discussion, the Grand Prix Commission has finally reached an agreement on the Factory 2 class. It took many hours of phone calls, and full agreement was not reached until late on Monday afternoon, but the agreement contains some significant changes to the long-term future of the MotoGP championship. The Factory 2 proposal has been adopted in a slightly modified guise, with any manufacturer entering in the Open class liable to lose fuel and soft tires should they win races. But the bigger news is that the full MotoGP class will switch to use the spec software and ECU from the 2016 season, a year earlier than expected.
The proposals adopted by the GPC now lays out a plan for MotoGP moving forward to 2016. In 2014 and 2015, there will be only two categories - Open and Factory Option - with the set of rules agreed at the end of last year. The new proposal sees manufacturers without a dry weather win in three years to compete as Factory Option entries, but with all of the advantages of the Open class - more fuel, more tires, no engine freeze and unlimited testing. However, should they start to achieve success, they will start to lose first fuel, and then the soft tires. If Ducati - for it is mainly Ducati to which these rules apply, as they are currently the only manufacturer who are eligible at the moment - score 1 win, 2 second place finishes or 3 third places during dry races, then all bikes entered by Ducati will have their fuel cut from 24 to 22 liters for each race. Should Ducati win 3 races in the dry, they will also lose use of the softer rear tires which the Open category entries can use. If Ducati were to lose the extra fuel or tires during 2014, they would also have to race under the same conditions in 2015.
It has been ten days since Carmelo Ezpeleta announced to an unsuspecting world that a new category would be added to the MotoGP class to contain Ducati, the 'Factory 2' class. The change was to be ratified on Tuesday, 11th March, in a telephone meeting of the Grand Prix Commission, and Ezpeleta was confident that it would go through without too many problems.
Tuesday came and went, and no agreement had been reached. In fact, it has taken all week and much of this weekend for the situation to approach a resolution. Sources with knowledge of the situation have now confirmed that an agreement will be announced on Monday, allowing the rules to be set in place for the start of the season on Thursday, 20th March.
MotoGP Rule Change Imminent: 'Intermediate' Category To Be Added Between Factory Option And Open Classes
The CRT-replacement Open class in MotoGP is causing an even bigger shake up of the class than was expected. The outright speed of the Forward Yamaha at the first two Sepang tests provoked a testy response from Honda, who claimed it was entirely against the spirit of the rules. Then came news that Ducati was to switch to an Open entry, giving them the freedom to develop their engines and use more fuel, in exchange for giving up their own ECU software. This provoked an even angrier response from Honda, Repsol Honda team principal Livio Suppo telling the MotoGP.com website that they were unhappy with the introduction of the new ECU software Magneti Marelli brought to the second Sepang test, which was much more sophisticated, though it was not used by the teams.
It seems Honda's complaints have not fallen on deaf ears. Today, in an interview with Spanish sports daily AS, Dorna CEO Carmelo Ezpeleta announced that a third, intermediate category is to be introduced for 2014. The new category, which Ezpeleta dubbed 'Factory 2', will see Ducati start the season under the full Open regulations: 24 liters of fuel per race, 12 engines per season, not subject to the engine development freeze, unlimited testing, and a softer rear tire, in exchange for using the spec championship software managed by Magneti Marelli. However, should Ducati win a race, or take 2 second places, or 3 third places, then they will lose some of their advantage. Fuel will be reduced from 24 to 22.5 liters, and the engine allocation will be reduced from 12 to 9 per season.
After the serious incident at Silverstone, in which Dani Rivas crashed into Steven Odendaal during the Sunday morning warm up, as Odendaal and other riders stood waiting to make practice starts, the Grand Prix Commission has taken steps to regulate practice starts in all three Grand Prix classes. From now on, practice starts will only be allowed from designated locations at the circuit, and practice starts elsewhere will be banned.
Practice starts will be allowed from pit lane exit during practice, and at one or two designated zones around each track, as decided before each race. Marshals will indicate the start of the practice start zones, and all riders not electing to practice a start in that zone will be warned by yellow flags and will have to stay on the opposite side of the track from the start zone.
The new rules are effective immediately. The FIM press release containing the full set of rules appears below:
FIM Road Racing World Championship Grand Prix
Decision of the Grand Prix Commission
If there is one complaint made about MotoGP it is that it is an almost entirely Spanish sport. The three title candidates in MotoGP are all Spanish, the three title candidates in Moto3 are all Spanish, and Scott Redding has his hands full holding off another Spanish rider, Pol Espargaro, for the 2013 Moto2 title. Spaniards dominate in all three classes, and it has been a long time since the Spanish national anthem hasn't been heard on a Grand Prix weekend.
So at first glance, the news that the Spanish CEV championship is to fall under FIM control and host rounds outside of Spain looks like increasing the stranglehold the Spanish have over Grand Prix racing. By raising the importance of the Spanish championship and therefore diminishing the status of other national championships, the FIM is making the situation worse, and handing even more control to Dorna, who run both the MotoGP and the Spanish CEV championships.
Though superficially attractive, there are some fundamentally wrong assumptions underlying that analysis. At the heart of the fear is the misconception that Dorna's main aim is to promote Spanish riders. The opposite is true: Dorna's main source of income is the sale of TV rights, and selling them as broadly as possible. Having too many Spanish riders in the series makes it hard to sell to broadcasters outside of Spain, hence Dorna's push to get more non-Spaniards into the series, especially in the Moto3 and Moto2 classes. Riders from outside of Spain are receiving preferential treatment in MotoGP, while pressure is being put on teams to reduce the number of Spaniards in the top class. The signing of Pol Espargaro has been a major bone of contention between Dorna and Yamaha, the repercussions of which are not yet fully worked out.
As we reported at Mugello, the claiming rule is to be dropped from the MotoGP rulebook. Introduced to prevent factories entering MotoGP under the guise of private teams, the claiming rule allowed any factory to claim the engine of a bike entered by a CRT team. But after the Grand Prix Commission agreed to the introduction of a spec ECU, the decision to run the spec software proved to be an alternative and more effective way was found of separating full factory efforts from privateer teams. The claiming rule was never actually used, the factories having said when the claiming rule was introduced that they had no intention of ever claiming an engine. It was kept there as the ultimate threat, Teddy Roosevelt's 'big stick' to prevent other factories from even considering such a ruse.
The new distinction between factory and private teams is now the spec ECU, and so the claiming rule has been dropped with immediate effect for all teams (Forward Racing, Avintia Blusens, PBM's Michael Laverty, CAME Ioda Racing) currently using the spec software. From 2014, all teams will have to use the spec hardware, and so the claiming rule will be dropped completely for the 2014 season.
MotoGP's Claiming Rule is set to be consigned to the history books. At the next meeting of the Grand Prix Commission at Barcelona, a proposal will be put forward to abandon the claiming rule altogether. With the advent of the new distinction, between MSMA entries and non-MSMA entries, the need to claim an engine ceased to exist. The demise of the claiming rule opens the way towards the leasing of Yamaha engines to private teams without fear of those engines being claimed by other factories.
The claiming rule had been instigated at the start of 2012, to allow the grid to expand. At the end of 2011, with the departure of Suzuki, and both Honda and Ducati cutting back the number of satellite bikes they were prepared to provide, numbers on the MotoGP grid looked like falling to as low as 13 or 14 bikes. The switch back to 1000cc engines meant a rich spectrum of engines was available to custom chassis builders, to produce affordable race bikes. To allow such teams to compete with the full factory efforts, such teams were allowed extra fuel (24 liters instead of 21), and double the factory engine allowance, 12 instead of 6. To prevent new factories from taking advantage of the loophole, the MSMA members - the factories involved in MotoGP - retained the right to claim the engine of such teams. Hence the name, Claiming Rule Team or CRT.
Carmelo Ezpeleta was served with with a subpoena this morning by legal representatives of Kevin Schwantz, calling the Dorna CEO to appear before the courts in Austin to give a report of the contract dealings between Schwantz and the Spanish company charged with organizing MotoGP over the race at the Circuit of the Americas in Austin. A statement released by Schwantz reads "I just received word from my attorney, Austin Tighe: I want to let you know that earlier this morning, over what I am told was a delicious Four Seasons’ breakfast, Carmelo Ezpeleta was served with a subpoena to appear for deposition in Austin on May 8 at 9:00 a.m."
The move is the latest step in the long-running dispute between Schwantz and COTA, the owners of the Circuit of The Americas, over the rights to organize the Austin round of MotoGP. With Ezpeleta called to make a public statement about the course of events leading up to the ousting of Schwantz, the Dorna boss will be forced to fly back to the US the week after the Jerez round of MotoGP, to speak to the courts. Ezpeleta will likely be quizzed on his role in the contract dispute between Schwantz and COTA, and exactly what agreements were made between the parties.
With the MotoGP paddock once again assembled for the start of the season at Qatar, the four organizations who make up the Grand Prix Commission, MotoGP's rulemaking body, took the opportunity to meet and discuss and adopt a number of rule changes. The rules cover a number of areas, including testing for all three classes, the 2014 technical rules for MotoGP, and further steps to control the real cost of engines in Moto3.
The most significant part of the press release is perhaps also the least obvious. The GPC confirmed the 2014 technical regulations previously agreed upon, after Dorna received assurances - and detailed proposals - that the manufacturers were prepared to supply private teams with affordable machinery. The news that Yamaha has agreed to lease engines to teams was the final piece in the puzzle which ensured that the rule package for 2014 would be adopted. Honda had previously agreed to build a customer version of their RC213V machine, five of which they will supply to private teams, and with Yamaha supplying four engines for lease - or more likely, a package including a Yamaha engine in a Yamaha-inspired chassis built by FTR - the grid will have at least twelve prototypes, nine MSMA-supplied privateer machines, and three other bikes, two of which could be factory Suzukis. Ducati has not been asked to supply privateer teams, unsurprising given the fact that the Italian factory is the smallest manufacturer by a very, very long way, and designing and building a separate engine or bike for customer teams is simply beyond their resources.
The Philip Morris-sponsored Wrooom event is not just the event at which Ducati launches its MotoGP season, it has become the de facto kick off to the MotoGP season as a whole. With an important section of the international media present, Dorna CEO Carmelo Ezpeleta inevitably seizes the opportunity to talk to the press about his view of the season ahead, and where necessary, of the future beyond that.
This year was little different. Ezpeleta spoke to the media ahead of the presentation by Ducati Corse boss Bernhard Gobmeier, and answered questions from a number of media outlets separately, answering questions on the future of both MotoGP and World Superbikes. From his statements, a picture of Dorna's vision for the two series starts to emerge: the future of world championship motorcycle racing is to be price-limited, with more support for the current teams, and factories holding a stake in both series, in exchange for keeping a lid on costs. The calendars of both series would come under scrutiny, with MotoGP heading to South America in 2014, and both series only racing at circuits willing to pay a sanctioning fee which would cover the cost of the logistics to get there.
Now that it has the World Superbike series under its control, Dorna is turning its attention to the question of costs. It was an issue which, WSBK insiders claim, the Flammini brothers and Infront spent too little time on, preferring to focus on trying to compete with MotoGP instead. The series' critics charge that this obsession caused WSBK to allow bikes into the series which were more like MotoGP prototypes than production road bikes. The Aprilia RSV4 is one of the bikes most often named in this regard, though perhaps the most extreme example was the Foggy Petronas FP3 machine, of which the entire homologation run is rumored to be stored in a warehouse owned by the Malaysian oil company in Kuala Lumpur. As a result, grids have shrunk from around thirty starters in 2009 to just twenty in 2013.
Since the global financial crisis struck back in 2008, MotoGP's primary focus has been on cutting costs. These efforts have met with varying success - sometimes reducing costs over the long term, after a short term increase, sometimes having no discernible impact whatsoever - and as a result, the grids in all three classes are filling up again. Further changes are afoot - chiefly, the promise by Honda and Yamaha to supply cheaper machinery to private teams, either in the form of production racers, such as Honda's RC213V clone, or Yamaha's offer to lease engines to chassis builders - but there is a limit to how much can be achieved by cutting costs. What is really needed is for the series to raise its revenues, something which the series has signally failed to do.
In truth, the series has never really recovered from the loss of tobacco sponsorship, something for which it should have been prepared, given that it had had many years' warning of the ruling finally being applied. The underlying problem was that the raising of sponsorship had been outsourced and the marketing of the series had been outsourced to a large degree to the tobacco companies, and once they left - with the honorable, if confusing, exception of Philip Morris - those skills disappeared with them. There was nobody left to try to increase the amount of money coming into the sport.
After an almost interminable period of discussions and debate, agreement has at last been reached over the technical regulations to be applied in MotoGP for the 2014 onwards. The agreement has been a compromise, with both sides of the argument being given something to satisfy them.
The new rules see the introduction of a compulsory spec ECU and datalogger, and the ECU now acts as a divide between the two classes of teams in the paddock. MSMA members will be allowed to use their own software for the spec ECU, but the punishment for doing so will be a reduction in the fuel limit from 21 to 20 liters for a race. Teams electing to use the spec software supplied by Dorna will be allowed 24 liters. The MSMA members will also be limited to 5 engines a season, while the rest will be allowed 12 engines. The reduction in fuel and engines was made at the request of the factories, to give themselves an engineering challenge to conquer.
An engine development freeze was also announced, preventing engine development during each season, and in addition, the bore and stroke of the MotoGP machines will be fixed for three seasons, from 2013 to 2015.
The key role that money plays in motorcycle racing was once again underlined when Bridgepoint Capital, the private equity firm which owns a large part of Dorna, announced it was selling a 39% stake in the organizer of MotoGP and World Superbikes. That stake was sold to CPPIB, a Canadian pension fund, the combining of WSBK and MotoGP under the umbrella of Dorna having been a prime mover for the sale.
One of the first things the new owners have done is opened up bidding for refinancing of the debts Dorna is encumbered with. According to reports in Bloomberg Businessweek, Bridgepoint and CPPIB have hired the French bank Societe Generale to help arrange financing covering some 485 million euros of debt. The debt being renegotiated includes existing debt placed on the company, as well as debt being used to refund shareholder loans, according to the reports. A meeting is scheduled for this week, where potential lenders will be offered the chance to bid on the loans.
Below is the press release issued by the CPPIB on their acquisition of a 39% stake in Dorna, reproduced with kind permission:
Canada Pension Plan Investment Board to Acquire Interest in Dorna Sports S.L.
Toronto, Canada (October 26, 2012): Canada Pension Plan Investment Board (CPPIB) announced today that it has signed an agreement to invest in Dorna Sports S.L. (Dorna) following the sports management company’s recent acquisition of the FIM World Superbikes Championship. CPPIB will acquire a 39% stake in the enlarged group alongside current shareholders, Bridgepoint and Dorna management.
Dorna holds the global rights until 2036 to organize the FIM Road Racing World Championship Grand Prix, known as MotoGP, the world’s most prestigious motorcycle racing series. Dorna recently expanded its group following the acquisition of the FIM World Superbikes (SBK) Championship which, together, represent the two pre-eminent motorcycle racing series in the world.
“This is a unique opportunity to invest in a leading international sports management business,” said André Bourbonnais, Senior Vice-President, Private Investments, CPPIB. “Dorna’s experienced management team has demonstrated a remarkable ability to deliver consistent and strong performance.”