The Uttar Pradesh (UP) government has decided to enter into an agreement with Dorna, which holds the global license for MotoGP, and its Indian partner Fairstreet Sports to host the premier bike racing event annually in the state until 2029. Invest UP, a recently established agency aimed at attracting investments, will create a fund to pay Dorna’s licensing fee of Rs 80 crore for MotoGP Bharat each year.
MotoGP made its debut in India last year, held at the Buddh International Circuit in Greater Noida from September 22-24. However, the event’s future became uncertain due to controversies, including contractors claiming unpaid dues of around Rs 30 crore from Fairstreet, which organized the event on Dorna’s behalf. An audit revealed that Dorna also had not received its full licensing fee of Rs 80 crore.
In response, Dorna requested government assurance to cover its expenses. Authorities intervened to incorporate MotoGP into the annual sports calendar, recognizing its significance in attracting investments and enhancing the state’s branding.
The audit report indicated that the total expenses for last year’s MotoGP Bharat were Rs 159 crore, while the funds raised amounted to Rs 52 crore, including Rs 18 crore from government organizations. On May 25, Industrial Development Commissioner Manoj Kumar Singh informed Fairstreet of a tripartite agreement to be signed between the government, Dorna, and Fairstreet to ensure the uninterrupted annual hosting of the event. Singh guaranteed a maximum licensing fee of Rs 80 crore to Dorna, stating that the remaining event expenses should be covered through ticket sales and sponsorships.
“The licencing cost of Dorna Sports for a one-year event is approximately Rs 80 crore (Rs 71 crore as licencing fees and Rs 8 crore as sponsorship buying cost). Several rounds of meetings have been held between officials of Dorna Sports, Fairstreet Sports, Invest UP, and the department of infrastructure and industrial development. It is agreed that the event will cost approximately Rs 150 crore per year. To execute the event in a transparent manner, an escrow account will be opened in which all funds mobilised through sponsorship and ticketing will be kept. The shortfall from Rs 150 crore and up to a maximum of Rs 80 crore will be raised by Invest UP. Invest UP will mobilise this resource from authorities, other government bodies, and private sponsors,” read Singh’s letter.
The government’s pledge to cover Dorna’s licensing fee coincides with the Yamuna Expressway Authority’s recommendation to blacklist Fairstreet if it fails to clear dues of Rs 30 crore owed to various service providers. These companies, which have been seeking payment from Fairstreet, include those responsible for laying the tracks and providing hospitality services.
Despite this, Fairstreet holds a contract with Dorna from 2023 to 2029 and is tasked with raising funds through ticket sales and sponsorships. Originally scheduled for September this year, MotoGP Bharat has been postponed to March 2025 due to weather conditions.
“The FIM (Federation Internationale de Motocyclisme), International Racing Team Association (IRTA), and Dorna Sports announce that the Indian Grand Prix will not take place in 2024, with MotoGP postponing its return to the country to early 2025. Due to weather conditions in Sept 2024, the Grand Prix of India cannot go ahead, but the region of Uttar Pradesh continues its long-term commitment to hosting MotoGP. MotoGP looks forward to returning to India in a new slot in March 2025, when weather conditions are expected to be optimal for spectators, marshals, and riders alike,” read a statement issued by Fairstreet on May 28.