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12100 A0 2016.Pdf Contents LIST OF EXHIBITS............................................................................................................................ 1 LIST OF FIGURES ............................................................................................................................ 2 WORD COUNT: 8909 ..................................................................................................................... 2 ACKNOWLEDGEMENTS ................................................................................................................. 3 EXECUTIVE SUMMARY .................................................................................................................. 4 INTRODUTION AND PROBLEM STATEMENT ................................................................................. 5 AGR Team History ................................................................................................................. 7 AGR Team Cost Drivers ......................................................................................................... 7 AGR Team Revenues & Growth ............................................................................................ 9 AGR Team Conclusions & Suggestions ................................................................................ 15 BACKGROUND OF THE PROBLEM ............................................................................................... 21 MOTOGP BUSINESS MODEL ........................................................................................................ 24 EXISTING SOLUTIONS ............................................................................................................... 27 Revenue Sharing ................................................................................................................ 28 Exposure Sharing ............................................................................................................... 29 Talent Re-distribution ....................................................................................................... 31 Budget Capping .................................................................................................................. 33 Regulations of Technology ................................................................................................ 35 Regulations on Score-system ............................................................................................ 38 CONCLUSION ............................................................................................................................... 39 Final proposal ...................................................................................................................... 39 Implementation Plan ........................................................................................................... 41 Key Performance Indicators ................................................................................................ 43 REFERENCES ................................................................................................................................ 44 ANNEXES ..................................................................................................................................... 46 1. Competitive Balance & Uncertainty of Outcome definition ....................................... 46 2. Interview to Enric Rojas............................................................................................... 47 3. Interview to Marc Saurina, Marketing Director of SuperBike World Championship.. 49 4. Interview to Oriol Gene, Marketing Manager at Pons Racing .................................... 51 5. Interview to Iker Burutxaga, Team Manager of AGR Team ........................................ 53 FUTURE STUDIES ......................................................................................................................... 55 ORGANIZATIONAL MANAGEMENT ..................................................................................... 55 SOCIAL CHANGE – SUSTAINABLE DEVELOPMENT ............................................................... 56 THE ECONOMIC RISE OF AFRICA ......................................................................................... 58 MARKETING AND THE NEXT GENERATION ......................................................................... 60 THE BEST WAY TO PREDICT THE FUTURE ............................................................................ 62 LIST OF EXHIBITS Exhibit 1: Agr Team budget season 2012-13 Exhibit 2: Team Cost Drivers Exhibit 3: AGR official website Exhibit 4: AGR Facebook Page Exhibit 5: AGR Instagram Page Exhibit 6: Event Branding Delivery Exhibit 7: Exposure Summary by Broadcast Portion Exhibit 8: Brand Geographic Valuation Exhibit 9: Brand Location Summary and Valuation Exhibit 10: Gresini Racing Instagram Page Exhibit 11: Marc VDS Team Official Website Exhibit 12: Marc VDS E-commerce Platform Exhibit 13: Sthil’s tools demo event by Sito Pons and Alex Rins Exhibit 14: Sthil products TV add with Pons Racing official pilots Exhibit 15: Sito Pons advertising Sthil products Exhibit 16: MotoGP season world standing by teams 2000-2015 Exhibit 17: Motogp grand prix world standing by pilots 2010-2015 Exhibit 18: MotoGP Stakeholders flow chart Exhibit 19: Dorna Sports Management Model Exhibit 20: Attendance per Grand Prix in 2014 Exhibit 21: 2016 MLS Player Salaries by Clubs Exhibit 22: Table of points per Grand Prix Exhibit 23: Implementation plan 1 LIST OF FIGURES Figure 1: MotoGP logo Figure 2: Dorna Logo Figure 3: AGR Team 2016 Figure 4: Montjuic Circuit, Barcelona. 1970 Figure 5: Honda- Campsa team official presentation 1980 Figure 6: Lateral fairings with min. radius of 2.5mm WORD COUNT: 8909 2 ACKNOWLEDGEMENTS We would like to thank everyone involved in helping us to investigate, develop and write this case management, including all following: Dorna Marketing Department, especially Marc Saurina (Marketing Director of SuperBikes World Championship). IMG MotoGP Media Management Department, especially Enric Rojas for all the information provided. Pons Racing Team Marketing Department, especially to Oriol Gené. AGR Team, for constant support, help and information provided, special thanks to Iker Burutxaga. Chus Sánchez, AGR Team Tech Director, many thanks for all information, contacts and opportunities provided. Christopher Kennett and Aarthi Rajaraman who have been our promoters and have guided us since the beginning of this case management, providing us with contacts, books, information and many more. Also giving us feedback and advice throughout the whole time. 3 EXECUTIVE SUMMARY This case management analyses the current situation of new teams entering the FIM MotoGP World Championship, what kind of difficulties are faced and which ways exist to succeed and become a sustainable or even profitable team. To better conduct the analysis of such a case, a real one was selected, the AGR Team (Arguiñano Ginés Racing Team). We analysed their beginnings, cost drivers, revenue streams, how they could achieve growth, etc. After analysing them and some other teams we give the AGR Team some suggestions on which areas could they improve and in which ways with clear examples. Moreover, during the investigation and development of the case, we realised that it would not really matter if we could help one single team, since many more are facing the exact same problems, which is the reason why we realised the problem was a managerial one. The entire championship is facing a problem of competitive imbalance, both affecting the teams who participate in but also the spectators, who are losing interest due to the lack of uncertainty of outcome. Then we realised that one of the main reasons why competitive imbalance is happening is due to the big differences on economic situations among teams. So, as both problems are highly correlated, a single solution could bring stability for entering and small teams, and at the same time improve competitive balance making the championship more attractive for fans. Finally after analysing what existing solutions have been develop for such a problem in other championships and leagues such as NBA or NFL, we have developed a hybrid strategy trying to combine the best part of each already existing solution plus we have tried to give an extra of innovation coming from us. Following our strategy we have also developed and implementation plan and a way to measure its success. 4 INTRODUTION AND PROBLEM STATEMENT With over six decades of history of elite competition, MotoGP is the world’s premier motorcycling championship, comprising an eight-month, 18-round season, in 15 different countries, spanning five continents. Dating back to 1949, it is the oldest motorsport World Championship in existence (History MotoGP, 2015). Each Grand Prix brings together the most talented riders from across the world to participate in races across three distinct categories – MotoGP, Moto2 and Moto3. The riders are widely recognized names in their respective home nations and beyond, with their individual characteristics collectively raising the global profile of MotoGP. The championship consistently attracts huge crowds to its Grand Prix events around the world, with about 2.5 million spectators in attendance to watch MotoGP live at the circuits in average per season (MotoGP review, 2014). The racing is a superb spectacle; it is about speed, technology, pure adrenaline and passion. All these is possible
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