Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport
Games”), is announcing today the sale and transfer of
NASCAR Team Properties’ (NTP) exclusive license for NASCAR® themed
simulation-style console racing games.
The sale and transfer, approved by NTP, will see
the license transfer from 704Games LLC (“704Games”), a wholly-owned
subsidiary of Motorsport Games, to iRacing.com Motorsport
Simulations, LLC (“iRacing”) who will begin developing the next
NASCAR console game.
“After careful consideration, it became apparent
that it is in the best interest of Motorsport Games to concentrate
our resources around alternative assets and revenue growth
opportunities. We believe that this is a continued shift toward
quality,” said Stephen Hood, Chief Executive Officer at Motorsport
Games.
“This sale to iRacing, a preferred NASCAR
partner, is expected to be beneficial to all parties. We believe it
will allow us to rebalance our immediate cash needs, reduce our
contractual and financial obligations and double-down on near term
revenue generating releases already in advanced development,”
continued Hood. “We would like to thank our partners at NTP and
fans of the franchise over the years and wish iRacing the best with
their future plans.”
“This mutual agreement is in the best interest
of all parties involved and allows for a new crown jewel in our
expanding video game lineup,” said Nick Rend, Managing Director
esports and gaming at NASCAR. “We thank Motorsport Games for its
efforts over the years and will work diligently with iRacing to
deliver a console game that's exciting for the gaming community and
allows our fans to connect with the sport in an impactful,
meaningful way.”
Current NASCAR titles, including NASCAR Heat 5,
which recently received the “Next-Gen Car Update” DLC, and Nintendo
Switch title NASCAR Rivals will remain supported by Motorsport
Games and available for the remainder of 2023 and throughout
2024.
Additionally, as part of ongoing efforts to
achieve long-term financial sustainability and growth, Motorsport
Games has committed to redefining its product and development
strategy and will start with a comprehensive commercial review of
all projects in its portfolio, which may result in additional
restructuring efforts to those already implemented under the
previously announced 2022 Restructuring program. This includes a
detailed review of the INDYCAR game project, which is under
development by the Motorsport Games Australia studio and
Traxion.GG, a UK based media website and community focused on
racing games and related esports.
Stephen Hood added, “We believe that the sale of
the NASCAR license is a significant accelerator to a planned change
of direction. With proprietary technology, industry leading talent,
handpicked advisors, stronger processes, and a change of culture we
expect to deliver on the promise we see throughout our
company.”
About Motorsport
Games: Motorsport Games, a Motorsport
Network company, is a racing game developer, publisher and esports
ecosystem provider of official motorsport racing series throughout
the world. Combining innovative and engaging video games with
exciting esports competitions and content for racing fans and
gamers, Motorsport Games strives to racing games that are
authentically close to reality. The Company is the officially
licensed video game developer and publisher for iconic motorsport
racing series including the 24 Hours of Le Mans, INDYCAR, and the
British Touring Car Championship (“BTCC”). Motorsport Games also
owns the industry leading rFactor 2 and KartKraft simulation
platforms. rFactor 2 also serves as the official sim racing
platform of Formula E, while also powering F1 Arcade through a
partnership with Kindred Concepts. Motorsport Games is also an
award-winning esports partner of choice for the 24 Hours of Le
Mans, Formula E and BTCC. Motorsport Games is building a virtual
racing ecosystem where each product drives excitement, every
esports event is an adventure and every race inspires.
Forward-Looking
Statements:Certain statements in this press release which
are not historical facts are forward- looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and are provided pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Any statements in
this press release that are not statements of historical fact may
be deemed forward-looking statements. Words such as “continue,”
“will,” “may,” “could,” “should,” “expect,” “expected,” “plans,”
“intend,” “anticipate,” “believe,” “estimate,” “predict,”
“potential,” and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements
include, but are not limited to, statements concerning whether it
is in the best interest of Motorsport Games to sell and transfer of
NASCAR license, whether it is in the best interest of Motorsport
Games to concentrate on its other resources, assets and/or revenue
growth opportunities, whether such pivot is a continuing shift
toward quality, whether shift toward quality, if achieved, would be
continued or material, whether this sale to iRacing would allow
Motorsport Games to rebalance its short-term cash needs and/or
reduce contractual and financial obligations and/or double-down on
near term revenue generating releases already in advanced
development, whether the foregoing activities, if effectuated,
would be beneficial for Motorsport Games and its financial and/or
liquidity position, whether Motorsport Games will succeed in
supporting and/or keeping available the current NASCAR titles,
including NASCAR Heat 5, which recently received the “Next-Gen Car
Update” DLC, and Nintendo Switch title NASCAR Rivals for the
remainder of 2023 and throughout 2024, whether Motorsport Games
will be successful in its ongoing efforts to achieve long-term
financial sustainability and growth, whether redefining Motorsport
Games’ product and development strategy would be achieved, whether
Motorsport Games’ review of all projects in its portfolio will be
beneficial, whether such review would result in additional
restructuring efforts to those already implemented under the
previously announced 2022 Restructuring program, whether such
additional restructuring efforts would be beneficial for Motorsport
Games and whether Motorsport Games’ review of the INDYCAR game
project would be beneficial for Motorsport Games and its customers.
All forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
many of which are generally outside the control of Motorsport Games
and are difficult to predict. Examples of such risks and
uncertainties include, without limitation: difficulties, delays in
or unanticipated events that may impact the timing and expected
benefits of Motorsport Games sale of NASCAR license and/or
Motorsport Games concentrating resources around its core assets
and/or revenue growth opportunities, whether such concentration
will be a continued shift toward quality, whether the sale of the
NASCAR license will become a significant accelerator to Motorsport
Games’ planned change of direction, whether Motorsport Games’
proprietary technology, talent, advisors, processes, and a change
of culture would deliver benefits to Motorsport Games and/or
improve its financial and/or liquidity position, whether Motorsport
Games’ talent is industry leading and Motorsport Games’ processes
are stronger, and whether Motorsport Games will be successful in
achieving long term financial sustainability and growth. Factors
other than those referred to above could also cause Motorsport
Games’ results to differ materially from expected results.
Additional factors that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements can be found in Motorsport Games’ filings with the
Securities and Exchange Commission (the “SEC”), including its
Annual Report on Form 10-K for the fiscal year ended December 31,
2022, its Quarterly Reports on Form 10-Q filed with the SEC during
2023, as well as in its subsequent filings with the SEC. Motorsport
Games anticipates that subsequent events and developments may cause
its plans, intentions and expectations to change. Motorsport Games
assumes no obligation, and it specifically disclaims any intention
or obligation, to update any forward-looking statements, whether as
a result of new information, future events or otherwise, except as
expressly required by law. Forward-looking statements speak only as
of the date they are made and should not be relied upon as
representing Motorsport Games’ plans and expectations as of any
subsequent date. Additionally, the business and financial materials
and any other statement or disclosure on, or made available
through, Motorsport Games’ website or other websites referenced or
linked to this press release shall not be incorporated by reference
into this press release.
Website and Social Media
Disclosure:
Investors and others should note that we
announce material financial information to our investors using our
investor relations website (ir.motorsportgames.com), SEC filings,
press releases, public conference calls and webcasts. We use these
channels, as well as social media and blogs, to communicate with
our investors and the public about our company and our products. It
is possible that the information we post on our websites, social
media and blogs could be deemed to be material information.
Therefore, we encourage investors, the media and others interested
in our company to review the information we post on the websites,
social media channels and blogs, including the following (which
list we will update from time to time on our investor relations
website):
Websites |
Social Media |
motorsportgames.com |
Twitter:@msportgames& @traxiongg |
traxion.gg |
Instagram:msportgames&traxiongg |
motorsport.com |
Facebook:Motorsport Games&traxiongg |
|
LinkedIn:Motorsport Games |
|
Twitch:traxiongg |
|
Reddit:traxiongg |
The contents of these websites and social media
channels are not part of, nor will they be incorporated by
reference into, this press release.
Contacts:
Investors: investors@motorsportgames.com
Media: press@motorsportgames.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/fc477954-4208-4012-960e-8f595dc8e42f
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