Motorsport Network

Motorsport Network, the international motorsport-focused media and technology company, founded “Motorsport Games” in 2018 as a fully-owned subsidiary. Motorsport Games is a racing game developer, publisher, and NASCAR esports ecosystem provider. Motorsport Games has offices in Miami, Orlando, Silverstone (UK), and Moscow. It also has a joint venture with Automobile Club de l’Ouest (ACO), through which the Le Mans Esports Series and 24 Hours of Le Mans Virtual events are organized. The agreement includes a 10-year rolling license includes the rights to create, develop, and publish video games based on endurance racing, such as the 24 Hours of Le Mans.

In 2018, Motorsport Games acquired 704Games, allowing it to become the official developer and publisher of the NASCAR video game racing franchise. It acquired all the minority holdings to take 100% control of 704Games in April 2021.  Furthermore, in 2018, the company acquired the leadership team of Virtually Entertained Limited, a UK-based esports specialist. In 2019, the company partnered with Codemasters who granted Motorsport Network the global rights to conduct official DiRT Rally 2.0 World Championship and official GRiD eSport World Championship esports events.

In March 2021, Motorsport Games announced that it filed an 8-K report to acquire 100% of the share capital of racing simulation platform (rFactor 2) developer Studio 397 from Luminis International for USD 16 million. The transaction closed in April 2021. Studio 397 is reported to maintain its name, branding, development team, and management team after the acquisition. Along with this, Motorsport Games announced that it had signed a binding term sheet to acquire Digital Tales USA. Digital Tales USA is a mobile game developer creating licensed games for the FIM Superbike World Championship (WorldSBK). The acquisition diversifies Motorsport Games’ product portfolio and bolsters its development team.

Motorsport Network established a multi-year licensing agreement to develop and publish video games for the British Touring Car Championship (BTCC) racing series across console, mobile, and gaming channels. The license grants the company the right to create and conduct esports leagues and events for the BTCC racing series. The agreement was finalized in 2020 and is expected to expire by the end of 2026. In 2021, the company planned to raise around USD 60 million in an initial public offering on the Nasdaq. The funds will be allocated to develop its mobile products, build a racing-focused gaming engine, sales and marketing, working capital, and winding down outstanding debt obligations.

The company announced a “long-term license” agreement with IndyCar, the governing body of the premier level of North American open-wheel racing in July 2021, to develop the first IndyCar game since 2004 and also produce official esports IndyCar events. The debut title under Motorsport Games is expected to launch in 2023.

Motorsport Games reported USD 15.2 million in revenue for FY2021, a 20% decline over the previous year. Revenue from the esports segment improved to USD 0.8 million, driven by sponsorship income, from USD 0.3 million in the previous year. Adjusted EBITDA worsened to a loss of USD 17.4 million compared to a profit of USD 900,000 in FY2020. During the same period, it reported a net loss of USD 33.7 million from a loss of USD 700,000 in the previous year.