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FIM: ALL ROADS LEAD TO DORNA. A FEDERATION CLOSELY LINKED TO IBERIAN COLOSSUS.

 FIM : legata a filo doppio ai successi (e non solo) di Dorna..

SkeetGp

An interesting report dated 2012 on the economic sources of the Fédération Internationale de Motocyclisme, FIM (the government authority of the world of the two wheels that was founded in 1904 which is based in Mies, Switzerland), contains important points to be considered on accounting information and also on the sport policy.

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Didascalia

 

The International Motorcycling Federation has a close relationship with Dorna Sports S.L. (the society which holds the ownership rights of the MotoGP and World SBK), with an agreement valid until 2036 for the sale of the rights of the MotoGP. This deadline could be seen as a "technical" error from the management point of view, because it’s still 19 years away. This time limit is to the benefit of Dorna, the same cannot be said of the FIM, because for example in the football series A., premier league, or in other leagues) all the agreements of this type have an application range at most of 3-5 years. In doing so, by always putting the royalties for every race time after time (starting with the television ones), one arrives at the most competitive offers (it’s a trivial law of the market.) While in the case of Dorna Sport we really are facing a more than "dominant" position in the world of the two wheels. This absolutely does no good to the competition nor to the concept of “free market”

If the FIM wanted to, it could have exerted these same rights on the race, choosing a short term not long one. We are sure that if this had happened there’s no guarantee that Dorna Sports would have won, on a case-by-case basis, the specific race, because there are other international companies specialised in marketing, advertising and television rights (for example the SBK for a long time had an agreement with another worldwide colossal: Infront Sport & Media).

Today the Dorna, rightly or wrongly, can work in their own time and this differs from what is already happening in other industrial sectors, where there is cut- throat competition (in terms of the financial bits).

Analysing this report (where the year 2012 is compared to 2011) the immediate obvious result is that 75% of the funding sources (which therefore permits the efficient running) exclusively comes from Dorna Sports S.L. Specifically 11, 07 million Swiss francs (converted to Euros equivalent to 9, 77 million). While overall from the promoters, arrives roughly 15, 27 million Swiss francs (12,65 million Euros).

The FIM is as if it is a single client or otherwise connected to a dual thread to the achievements (not only) of Dorna. As previously mentioned, the latter is in a “dominant” indisputable position. It’s not a judgement matter; it is simply more of a common sense observation.

The Swiss organisation, of which more than 103 motorcycle racing associations are tied to, has for status a role of unit control/regulator of the sector. With an “intense” presence under the economic profile, how can it take the most correct decisions, especially as the budget deployed by Dorna inevitably impacts on the organisation and on the sporting political choices of the FIM (it not only deals at a  professional level of Motor Sports, but also the Enduro , Motocross, SuperBike, Freestyle, Speedway and the MiniMoto )?

As well as the World Motorbike Championships, (we are talking about Moto3, Moto2 and MotoGP, the “Regal” class of Motorcycling) Dorna is the holder of the World Superbike rights but also of the CEV Championship, the Red Bull Cup and the Asian Talent Cup. Basically one either goes through Dorna Sports S.Lor one does not invest in this sector. It is unbelievable but true especially when we think that we are in the third millennium. Ours is not a judgement of value on the Iberians but on these arrangements which has led to this centralization of all these rights being handled, without being able to see a minimum of competiveness.

In the Italian Football League (Premier) for example “Infront Italy “gave up the rights of the foreign markets to the IMG, an American giant who has always been a direct competitor. In the Motoring World would this replicate a similar operation? To date the answer is simply NO.

With regards to the theme FIM, in the future it will have to try and be more independent because it is in its DNA and institutional role. This tight relationship with Dorna as the monopolist compels it to wait for the decisions made by the Iberians and by not being able to compare by assessing different operators which are present in the market of sports marketing.

 

*THE ITALIAN ARTICLE OF MARCEL VULPIS IS BEEN TRANSLATED  BY EDITORIAL SKEETGP.COM STAFF