According to a recent report by Reuters, the owners of the World Rally Championship’s commercial division are exploring the possibility of selling the business, seeking to capitalize on the high valuations currently seen in sports media rights.
The current owners – Austrian beverage giant Red Bull and German investment firm KW 25 – are collaborating with JPMorgan bankers to prepare for a potential sale of WRC Promoter GmbH, possibly within the year, sources familiar with the matter revealed to Reuters.
The owners hope the Munich-based company could be valued at up to 500 million euros ($550.3 million), supported by projected earnings before interest, tax, depreciation, and amortization (EBITDA) that could exceed 20 million euros this year, one insider noted to Reuters.
However, the sources, who requested anonymity due to the confidential nature of the discussions, warned that negotiations are ongoing and a sale may not ultimately occur.
Representatives from JPMorgan declined to comment for Reuter’s report, and WRC Promoter, Red Bull, and KW 25 did not immediately respond to requests for comment either, reported Reuters.
WRC Promoter, jointly owned by Red Bull and KW 25, was founded by entrepreneurs Karl Wieseneder and Thomas Krohne. Krohne also owns the Munich Ravens American football team, which competes in the European League of Football (ELF), according to his LinkedIn profile.
A new owner could potentially expand WRC Promoter’s global presence and increase its reach in the U.S., the source added. Potential investors could include private equity firms, high-net-worth individuals, and major sports media groups.
WRC Promoter handles the commercial operations of the FIA World Rally Championship (WRC), including TV production, media, and sponsorship rights. In 2021, despite the impact of COVID-19 restrictions, WRC Promoter reported sales of 25.7 million euros and an operating profit of 4.62 million euros, as per Germany’s federal gazette Bundesanzeiger. The company anticipates increased sales in the following year following its acquisition of the European Championship and the Rallycross Championship.