MotoGP has taken an important step in reorganizing its financial structure after completing a refinancing operation that allowed it to reduce its total outstanding debt by approximately $114 million. The company, which owns the commercial rights to the MotoGP World Championship and is controlled by Liberty Media, closed the transaction on June 17 in a move aimed at strengthening its financial position amid the championship’s global growth and increasing interest in international sports rights.
Although MotoGP’s business continues to expand thanks to new audiences, commercial agreements, and a stronger international presence, debt management remains a key element of its corporate strategy. The operation not only reduces financial obligations but also adjusts the company’s financing conditions for the coming years, providing greater flexibility as it continues to drive the development of one of the world’s premier motorcycle racing competitions.
A Financial Restructuring to Reduce Debt
The refinancing involved replacing two major loans that were part of the debt structure of MotoGP Sports Entertainment. On one hand, the company replaced an €800 million Term Loan B with a new €720 million facility, while maintaining its maturity date in August 2032. At the same time, the Term Loan A was reduced from $231 million to $209 million, with its maturity date remaining set for August 2030.
These transactions were accompanied by the renewal of a €100 million multicurrency revolving credit facility, which maintains both its amount and maturity date through 2030. A notable aspect of the refinancing is that the debt reduction was financed directly through the company’s own cash resources, reflecting the financial strength of the business in recent years. Following the transaction, MotoGP holds approximately $72 million in cash and liquid investments, while its principal debt balance now stands at $1.037 billion.
New Conditions to Face the Future
In addition to reducing its debt burden, the company also renegotiated several terms associated with its financial instruments. In the case of the Term Loan B, the margin was reduced from 2.5% to 2.25%, while introducing a variable range between 2% and 2.25% depending on the company’s leverage level. Euribor will remain the benchmark rate used for this facility, helping to maintain long-term stability in the company’s financial structure.
The adjustments also affect the Term Loan A and the revolving credit facility. While the former retains a 1.5% margin, the leverage-linked range has been revised to between 1.25% and 1.5%, using Term SOFR as its benchmark. Meanwhile, the revolving credit facility maintains a 2% margin but lowers the leverage-related range to between 1.5% and 2%. Liberty Media has clarified that both the loans and the revolving credit facility remain non-recourse to the parent company, meaning the debt remains exclusively tied to MotoGP, preserving the company’s financial independence as it continues to expand its operations on a global scale.
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