The Fédération Internationale de l’Automobile (FIA) has given its backing to a tender process for the commercial rights to the World Rally Championship (WRC), paving the way for a potential £500m auction, SkyNews reports.

Current rights-holders Red Bull and German investment firm KW25 are seeking an exit from WRC Promoter, which also owns the rights to the European Rally Championship. They have been exploring a sale for close to a year and have already held talks with interested parties, including private equity firm EQT.

The WRC has enjoyed a surge in popularity, with a cumulative TV audience of 1.3bn and over 4m fans attending races last year. FIA president Mohammed Ben Sulayem said: “The FIA World Rally Championship is at an exciting moment in its history.” 

“This Championship has enormous potential, and it is our responsibility as a governing body to ensure it continues to grow and reaches new heights,” he added.

Analysts expect private equity firms, sports investors, and media companies to join the bidding. The sale comes amid a period of financial strengthening for the FIA, which has shifted from a €24m deficit in 2021 to a surplus of nearly €5m last year.

The endorsement of the tender process highlights growing investor appetite in sports rights, adding motorsport to the expanding list of assets attracting private equity capital.

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