BANGKOK: The Sports Authority of Thailand (SAT) has released a comprehensive breakdown of the economic and operational facts surrounding the country’s MotoGP contract, vigorously defending the decision to host and renew the world championship event amid public skepticism.
Facing allegations that the Thailand MotoGP round is “not cost-effective,” “lacks private support,” and “sees declining attendance,” the SAT has issued a clear statement detailing nine core facts, backed by hard data on economic value and national returns.
1. The $100M Question: Where Does the Money Go?
The SAT confirmed that Dorna Sports, the global rights holder, exclusively contracts with sovereign governments or state agencies to ensure stability. Therefore, the SAT is the sole contractual partner. All licensing fees are approved and paid directly to Dorna Sports annually and do not pass through private intermediaries. Conversely, all income—including ticket sales and private sponsorship—is funneled directly back to the SAT to offset government budgetary burden.
2. Rising Fees: Did Thailand Protect its Interests?
The SAT confirmed that licensing fees are rising globally, but Thailand’s rate is considered lower than other host nations. Negotiations were complicated by increased global competition for hosting slots and the contract shift to a two-day race format (Sprint Race Saturday, Main Race Sunday). Given the global price trend and the favourable rate secured, the SAT asserts the negotiation was in the country’s best interest.
3. Funding Priority: MotoGP vs. Flood Relief?
The SAT clarified that the budgets are entirely separate. Government expenditure for sport promotion (like MotoGP) comes from the SAT’s allocated budget, governed by national strategy. Funds for emergency disaster relief are sourced from the ‘Central Budget for Contingency or Necessary Expenditures.’ The proposed $4 billion THB framework for the 2027–2031 contract does not impact current flood relief budgets.
4. Was the Contract Renewal Rushed?
The SAT stated the renewal process was not rushed, but rather delayed. The original contract ends in 2026, and Dorna requires host nations to express renewal intent at least one year in advance (by 2025). Acting now was deemed a necessary, timely decision to prevent Thailand from losing the hosting rights, which are projected to generate an economic value of over 28 billion THB in the next five years.
5. Declining Attendance: Where is the Value?
The SAT refuted claims of declining viewership, pointing out that attendance was consistently high, earning the Best Grand Prix of the Year award in 2018 with 222,535 spectators (rising to 226,655 in 2019). The dip in 2022 (178,463) was due to Ministry of Public Health COVID-19 restrictions. Economically, the event is indisputably valuable: eight years of hosting (2018–2025) generated 24.927 billion THB, and the new five-year contract is expected to generate an additional 28 billion THB.
6. Private Support: Is the State Bearing the Burden?
While many global MotoGP hosts have governments covering most of the fees, the SAT notes that Thailand relies very little on government funding. The SAT successfully secured continuous, large-scale sponsorship from private sector giants (energy, automotive, beverage), significantly reducing the state’s financial burden. For the new contract (2027–2031), the SAT targets securing over 700 million THB in private funds, reaffirming the private-sector-led management model.
7. Private Profit/Venue Choice: Why Buriram?
The SAT clarified it has no hiring contract with Buriram United International Circuit (Chang Circuit). Instead, the circuit owner allows the SAT to use the track for free, a subsidy valued at 12 million THB annually, saving the state 72 million THB over six years. Buriram is the only FIM GRADE A circuit in Thailand capable of hosting MotoGP, fulfilling the purpose of stimulating the economy in the Northeast region.
8. Conflict of Interest: Favouring the Circuit Owner?
All major revenue streams (ticket sales and private sponsorship) are remitted directly to the SAT for administration. This revenue is then used to offset the licensing fees paid to Dorna Sports, minimizing the public budget required. This transparent process ensures that management prioritizes state benefit.
9. Cross-Party Support: A National Event
The hosting of MotoGP has received continuous cross-party support from every successive government, recognizing the substantial economic benefits and positive national image generated:
- Contract 1 (2018–2020): Approved under Gen. Prayut Chan-o-cha’s government. Generated 6.584 billion THB in economic value in two years and won Best Grand Prix of The Year in 2018.
- Contract 2 (2022–2026): Also approved under Gen. Prayut’s government. Achieved over 770 million THB in private sector funding and delivered 24.927 billion THB in total economic value through 2025.
- Contract 3 (2027–2031): The Cabinet has approved the hosting, with the SAT proposing annual budget requests and targeting at least 700 million THB in sponsorship, ensuring no impact on current urgent budgets.
