By alley - Jun 23, 2016, 2:31 PM ET

MOTOGP: Better financial terms for teams in new deal

Dorna and the International Road-Racing Teams Association have agreed a new, five-year deal covering the structure and promotion of MotoGP.

Together with the FIM, the three entities have overseen motorcycle grand prix racing since 1992, and a new agreement for 2017-21 has been agreed.

Better financial terms for teams is one of the key points, which Tech3 Yamaha boss and IRTA president Herve Poncharal says will help provide mid-term stability for the satellite outfits in particular.

"The contract I think is everything we were wishing, everything we were hoping to get for the teams," he said. "Stability clearly is what we need, and to have stability you need to have a good enough financial support in order to make mid-term plans for your company. You need the mid-term vision with a five-year deal, I think this is ideal.

"And the fact that the financial support is better and bigger is helping us to go to the market and see what machines are available now; because of the new rules we will have six manufacturers [in MotoGP] from next year.

"This is clearly an opportunity in MotoGP for every single independent team manager to see what's the best option and I think this is something very important."

Moto2 and Moto3 teams have also been accounted for, with the cost of competing set to come down, something Poncharal called a " big step forward," with improvements "in every department" including reduced freight costs.

"The support of the championship will be bigger and the cost to participate in the championship for Moto3 and Moto2 teams will be lighter, which means with the same budget they can do more," Poncharal said.