News from the Red Bull Global Rallycross is out this morning regarding a new Racing Entitlement Program. Here’s the release from the series:
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Red Bull Global Rallycross is pleased to announce a racing entitlement program designed to allow team owners to build meaningful equity value in their GRC teams.
Key features of the Racing Entitlement Program include:
- Limited number of racing entries.
- Guaranteed entitlement to race in all series events.
- Racing entitlements can be sold or transferred.
- Racing entitlements participate in future television broadcast revenues.
- Racing entitlements participate in equity value created in the GRC series.
“The Red Bull GRC Entitlement Program is designed to solve one of the biggest issues in motorsport team ownership – the inability to monetize many years of investment in your team,” said Colin Dyne, CEO of Red Bull Global Rallycross. “In most other sports, teams build meaningful equity value alongside the leagues that sanction them, but in motorsports that is the exception, rather than the rule. We intend to disrupt the status quo with this program.”
The Entitlement Program will share the benefits that come from all stakeholder efforts to build the next generation motorsports platform, and does so in a thoughtful manner, aligning the interests of the series with the team owners.
With a limited number of entitlements, new teams and manufacturers will have to partner with or purchase entitlements from existing owners once the slots are full, creating value from their multi-year investment in their teams.
“Many of our partners have been with us since the series’ inception,” continues Dyne, “and we look forward to sharing the benefits of our continued growth with them.”