The commercial rights holder for the World Rally Championship (WRC) is shifting into high gear — not on the racetrack, but in the boardroom. Private equity heavyweight EQT Partners is preparing a bid for WRC Promoter GmbH, which owns the commercial rights to both the WRC and the European Rally Championship (ERC). The business is reportedly being valued close to £500 million as the auction process accelerates.
WRC Promoter, currently owned by Red Bull and KW25, a German investment firm, has long served as the commercial engine behind the FIA-sanctioned rallying world. With bankers from JP Morgan orchestrating the deal, this long-anticipated sale now moves closer to completion.
While EQT has not historically been a frequent player in the sports investment arena, the firm has sharpened its focus on the space in recent months. Recent activity includes:
- A stake in Baller League, a 6-a-side football concept backed by Gary Lineker
- A bid in the Bundesliga commercial rights auction in 2023
This move signals a broader ambition to gain a foothold in the sports IP ecosystem, particularly in underserved or commercially under-optimized formats like rally racing.
Why This Matters: A Commercial Turning Point for Motorsport
The WRC has historically played second fiddle to Formula 1 in terms of global viewership and commercial returns. However, several key dynamics are turning heads in the private equity world:
- Expanding global audience across Latin America, Asia, and the Nordics
- Content-hungry broadcasters and streaming platforms looking for year-round motorsport inventory
- The ability to vertically integrate experiences — from physical events to branded content and licensing
EQT’s interest underscores a key insight: motorsport properties with strong heritage and niche loyalty are ripe for brand transformation and digital monetization.
For rights holders, investors, and promoters, the WRC opportunity demonstrates:
- The value of untapped sports formats with passionate regional audiences
- A growing trend of private equity moving downstream, from top-tier leagues to niche properties
- The importance of storytelling, docuseries, and digital activations in turning on new fan bases
The key will be how WRC Promoter’s new owners — whoever they may be — reimagine the sport’s commercial ecosystem: from rally location bidding, to immersive fan engagement, to sponsorship tiering and OTT broadcast rights.
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IMAGE: Reuters
