The owners of the World Rally Championship’s commercial rights are looking at potentially selling the business in a multi-million-pound deal.
WRC Promoter GmbH is jointly owned by German investment company KW 25 and Austrian energy drinks powerhouse Red Bull, and they are responsible for all commercial aspects of the championship.
This includes TV production and the marketing of global media and sponsorship rights, as well as having responsibility for the number of competitors in the WRC and proposing venues to make up the calendar for the season.
Since 2022, they have also organized the European Championship and Rallycross Championship alongside the WRC.
And in a report, WRC Promoter GmbH’s owners are looking at a possible sale of the business as they look to expand the championship’s global audience.
WRC Promoter GmbH is looking to expand the championship into the US with a potential ‘£426m’ sale
According to Reuters’ sources, who wished to remain anonymous due to the issue being confidential, the owners are “exploring options”, which include a potential sale as they seek to “bring in cash at a time of high valuations for sports media rights”.
The Munich-based business is hoping for a valuation of approximately $550 million, or around £426 million, which is “underpinned by earnings before interest, tax, depreciation, and amortisation (EBITDA) that could reach more than 20 million euros this year.”
People familiar with the situation have said that the promoter is working with bankers at JPMorgan to prepare for a possible sale, which they say could come “as soon as later this year”.
However, the sources also made it clear that while “discussions were ongoing”, there is currently nothing to suggest a sale will definitely happen.
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One person Reuters spoke to indicated that a new owner for the business would “help to widen its global reach and expand into the US”, and that larger sports media groups and high-value individuals could be among the potential new investors.
This would emulate what Liberty Media has achieved since taking over Formula 1 in 2017, which has skyrocketed the sport’s interest in the States with the popular Netflix series Drive to Survive, as well as having three races in the nation on the category.
Liberty Media recently acquired Doma Sports, the owners of MotoGP, as they look to do the same for the two-wheel series as they have with F1, and it could be that the WRC is the latest category to try and break the American market, having not hosted a rally in the country since 1988 in Washington.
The 2024 WRC title is still up for grabs
While discussions are taking place off the dirt track in regards to a potential new owner, there is plenty of action on it as the 2024 season nears its conclusion.
With four rallies to go, Hyundai’s Thierry Neuville leads the championship by 27 points. Having claimed victory in Monte Carlo and finished in the top five in all but two events, the Belgian is searching for his first title.
Toyota’s Sebastien Ogier is second in the championship, having finished in the top two at all six of the rallies he has competed in as he looks to fight Neuville for his record-equalling ninth title.
Ogier will take part in the next rally in Greece as he hopes to grab his fifth rally win of the year and close the gap to his rival at the top.