As of April 30, 2023, Motorsports Games reported that they had approximately $4.9 million of available cash on hand. Motorsports Games also reported that they currently lose $1.9 million each month. Based on those self reported figures, we can project that Motorsports Games has now extinguished their cash on hand, unless they were further subsidized by their parent company, Motorsports Network. Motorsports Network has continued to prop up Motorsports Games as it burned through its cash reverses in the past. However, as of June 28, 2023, GMF Capital acquired Motorsport Network… without acquiring Motorsports Games.

Motorsports Games has been set adrift, likely with little to no cash on hand and only a few assets, such as some supercars in their Florida office, the handful of exclusive motorsports licenses, and gaming titles such as RFactor 2, Kart Kraft, & Nascar Ignition 21. Will Motorsports Games explore the sale of some of its licensing agreements? Well, they might not have a choice. The scheduled August 9, 2023, Q2 earnings report for Motorsports Games has been delayed/cancelled and it appears to be desperate times for Motorsports Games.

It has been rumored that NASCAR would like to get out of its licensing agreement with Motorsports Games, and Adam Stern has reported that NASCAR has a significant announcement coming concerning NASCAR console gaming. We believe that this is most likely a deal with iRacing concerning the development of a console game, via the same dev team that developed iRacing’s recent World of Outlaws sprint car racing game. Additionally, iRacing could use this opportunity to wrap NASCAR into feature placement in iRacing’s new and upcoming career mode.

Motorsports Games appears to finally have one game coming that might actually be a hit, with Le Mans Ultimate scheduled for release in December 2023. Le Mans Ultimate is heavily based on the RFactor 2 game engine and will feature Le Mans Hypercar (LMH), LMDh, LMP2 and GTE classes. Unfortunately, being cut off from Motorsports Network and likely without any cash reserves, CEO Stephen Hood has a massive challenge to find the funds to carry the team through the end of the year.

We suggest that Motorsports Games sits down with NASCAR and iRacing to negotiate the sale of the license to iRacing. We also would consider looking into selling the Indycar license as well to iRacing. Stephen Hood cannot be picky about figuring out how to fund the company’s survival for these next several months, and facing the additional discontentment of NASCAR and Indycar fanbases, it would be in their best interest to make a deal for some cash and free up iRacing to develop games for Indycar and NASCAR. Then Motorsports Games can focus on developing their Le Mans Ultimate game, RFactor 3, and perhaps even a standalone BTCC game.

Motorsports Games is in a tough spot. Unless CEO Stephen Hood can figure out some drastic changes it appears that this might be the end for the controversial game studio. Motorsports Games needs to rebuild its reputation, and we believe a step in the right direction would be to sell the licenses it doesn’t seem able to fully support. Motorsports Games can hopefully get the funding to finish Le Mans Ultimate, and the sim racing community will hopefully get to enjoy NASCAR and Indycar games sooner, rather then later.