- Potential sale could reportedly happen later this year
- New ownership would help widen WRC’s global reach and US expansion
Austrian energy drinks giant Red Bull and German investment company KW 25 are exploring a potential sale of the World Rally Championship’s (WRC) commercial arm, according to Reuters.
The owners of WRC Promoter GmbH are reportedly exploring options for the company and have brought in JPMorgan Chase & Co to prepare for a possible sale as soon as later this year.
Reuters adds that Red Bull and KW 25 are hoping WRC Promoter could secure a valuation of up to €500 million (US$550 million), bolstered by earnings before interest, taxes, depreciation and amortisation (EBITDA) that could reach more than €20 million (US$21.9 million) this year.
The company’s shareholders are reportedly looking to capitalise on the increasing value placed on commercial rights holders in sports.
WRC Promoter had sales of €25.7 million (US$28.2 million) and an operating profit of €4.62 million (US$5.08 million) in 2021, which were impacted by Covid-19 restrictions, according to the latest filings published by Germany’s federal gazette Bundesanzeiger, as reported by Reuters.
Discussions are purportedly ongoing but a sale might not proceed.
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A new owner for WRC Promoter could help widen the company’s global reach. WRC is already set for its largest season since 2008 after announcing its 2025 calendar.
All told, next season will consist of 14 rounds across four continents. Spain, Paraguay and Saudi Arabia are all joining the schedule, while Estonia returns to the lineup after a one-year hiatus. As expected, Croatia, Latvia and Poland have dropped off the calendar.
New ownership would also likely help fuel expansion into the US. Speaking to BlackBook Motorsport, WRC event director Simon Larkin said a US rally in 2026 “will happen”.
“We have a great relationship with Tennessee, with Chattanooga, with Nashville, and there is significant support coming from there,” added Larkin.
“The US is not like other markets where there is any government that will be willing to underwrite an event to the extent … that we require in other parts of the world, it’s never going to happen.
“It did take a while for us to convince our board of that, but now they’re on board, so we know we’re going to have to refinance it. We’re already a long way down the road with a naming rights partner, which takes away from some of our underwriting.
“Even if it’s not a profit maker, if it’s washing its face, brilliant.”
As well as the US, WRC could also return to Ireland in 2026, having last raced in the country in 2009.
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