If you want to know how to run a MotoGP team successfully, Hervé Poncharal is the right person to ask. Thirty-three years of experience in the Grand Prix paddock speak for itself, but what impresses even more is the seemingly endless list of top riders and partners with whom he has worked and supported.
Poncharal, who was born with the mind of a businessman and the soul of a rock-’n’-roller—a rare combination in MotoGP—is the president of the International Road Racing Teams Association (IRTA), with a wide understanding of the sport and strong relationships with Dorna and the manufacturers. And he has always had a nose for talent.
Fellow Frenchmen Dominique Sarron and Olivier Jacque, Brits Cal Crutchlow and Bradley Smith, Americans John Kocinski, Colin Edwards and Ben Spies, Japan’s Norick Abe, and Shinya Nakano, and Italians Marco Melandri and Andrea Dovizioso are just a few of the international superstars who have raced for the Tech 3 team led by Poncharal since 1989.
This season, Poncharal invested in a pair of rookies. Johann Zarco and Jonas Folger are currently sixth and eighth in the points standings, each with a podium finish. Tech 3 currently enjoys successful partnerships with Yamaha and Monster Energy. Previously, Poncharal teed up tobacco giants Rothmans, Lucky Strike, Chesterfield, Gauloises, and Fortuna.
What are the key elements for a private team to remain at the top?
You need to be a good team manager, select the right riders and technical suppliers, but on top of that, you need to be a good businessman. It’s important to keep your feet on the ground and never become blind by passion. The number-one rule is not to spend more than what you earn. This is the basic rule to run a company, but in our world there is so much passion that I saw many colleagues ruined to have better parts or a faster rider. Secondly, my policy has always been to keep the same profile even when I was successful. I have always been humble. Thirdly, we are here thanks to the sponsors, so we need to give them what they are expecting for the return of their investments.
What can a satellite team offer?
The MotoGP grid features six factory and six independent teams. We cannot compete with the manufacturers, so we need to be complementary. We are a more flexible structure and open to last-minute changes. We position ourselves like the rookies’ team that invests in young talent. We are here also to support the factory, giving some technical feedback. This year, we have been in front of the factory riders with a 2016 Yamaha YZR-M1, so it was important for Yamaha to understand why. In addition, the fact that Yamaha lines up four bikes and four riders of different nationalities—Italian, Spanish, French, and German—helps in terms of marketing.
Looking at the riders with whom you have worked, which one surprised you most?
It's a long list, starting with John Kocinski. His speed was unbelievable. I never saw in my life such a talent. Unfortunately, his head didn't always match his talent. Also, Shinya Nakano was incredible fast. He had never left Japan before joining us. For four years, he was like my son. Another great surprise was Ben Spies. He was coming from World Superbike and usually when a rider swaps from a production bike to a prototype he needs some adaptation time, but Ben did incredibly well and I expected him to do more when he joined the factory team. Finally, my current riders, Johann Zarco and Jonas Folger: I believed in them, but they really surprised me because they are rookies. In the first race at Qatar, Zarco was leading the race, although he didn't finish. Both of them sometimes beat the factory riders, which is not normal as rookies, and they have each scored a podium.
What about Colin Edwards?
His speed and talent was not a surprise as he was already two-time World Superbike champion and joined us as a Yamaha factory rider when Lorenzo signed for Yamaha. For him, it was a step back, but he never made us feel like that. I’m thankful to him. I was so impressed by his commitment and motivation to beat the factory riders. We learned a lot from him; he helped us to grow.
Looking at the sponsors, how the scenario is changing?
Motorsport was sponsored by tobacco for many years, and we had the right resources to grow and make our sport more professional. They supported us but, in a way, it created an incredible inflation, because the tobacco companies were all fighting to be in motorsport. It was like we had unlimited funds. They were spending a lot of money and the salary of the riders and the loan costs of the bikes were rising. With the ban of tobacco advertising, these companies left and we passed from huge financial support to zero. It was not easy because the prices were too high. Dorna CEO Carmelo Ezpeleta did an incredible job on cost reductions with cap cost on the bike lease fee. We have been working with Dorna to make the championship grow and now the MotoGP satellite teams have a five-year contract with significant support from Dorna that represents an important part of the budget. The six independent teams that signed with Dorna are the only ones to have this guarantee, and this has a value.
What new sponsors are entering the paddock?
The energy drinks are investing a lot, there are still old giants like Repsol and the telephone companies. We need to thank Carmelo, who understood that pay TV can help us. He signed better deals than with free on-air TV. The revenues are shared, and most of the time he imposed a TV company to support a team. When he signed with Movistar, for example, Yamaha didn’t have a title sponsor, so supporting the team was one of the conditions.
How much does it cost to run a MotoGP satellite team?
It costs around 10 million euro per season, at least for Tech 3. Half of the budget is represented by the bikes: The lease fee of 2.2 million per rider includes engine maintenance and development, plus crashed parts. The other half is represented by the salary of 40 team members, the logistics of the people, flights, hotels, equipment, seven trucks for European races, and tons of material to ship by plane for overseas races. On top of that, you need to pay the riders. Salaries vary a lot. There are three to four MotoGP riders who earn more than the budget for a whole season of Tech 3. I cannot afford them.
You also have a Moto2 team.
The budget of a Moto2 team is around 1.8 million euro for the whole season. I have reduced costs because we have a joint MotoGP/Moto2 team.
Considering that all of the places on the MotoGP grid are now taken, how would an American investor enter MotoGP with his own team?
First of all, I think that MotoGP should be and will be more important in the United States. It’s an important market for the manufacturers as well as sponsors like Monster or Red Bull. For sure, to be successful in a country, you need a local hero. We used to have a domination of American riders with Wayne Rainey, Kenny Roberts, Kevin Schwantz, Freddie Spencer, and so on. Nicky Hayden was the last American champion. There is no reason why it cannot come back. We need a better structure to find young talent, and Dorna wants to invest to detect talent in America, but it will take some time.
If a rich businessman wanted to invest in MotoGP, first I suggest to come and see how races are in Europe, talk to Dorna and the team managers. If he likes it, he can make a first step as a sponsor. You don’t need to invest a fortune. Then, if the feeling is good, he could become a shareholder, and eventually buy the team. At the same time, it would be important to help Dorna promote local talents in US. Now, we are strong in Europe, in Asia, and we definitely need to be strong in the US.
If you could send a message to an American investor, what would you say?
Help us to help you. They have a lot. Motorsport is in the American DNA. Red Bull and Monster are interested in that market, and old stars like Rainey, Schwantz, and Roberts are willing to help us. We have many positive things, so we just need to react.