---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-23-035756"
form_type: "8-K"
ticker: "MSGM"
cik: "0001821175"
company_name: "Motorsport Games Inc."
filed_at: "2023-10-05T23:59:59+00:00"
generated_at: "2026-06-10T04:08:32.362292+00:00"
event_type: "m_and_a"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Motorsport Games sells NASCAR simulation license to iRacing for $5M plus deferred payments

## Summary
- Sold NASCAR sim-style console license to iRacing for $5M cash at closing plus up to $1M deferred ($500k at 6 months, $500k by Dec 2024).
- Net proceeds used to pay NASCAR minimum guarantees: $656k for 2023 and $598k for 2024; company retains limited license to sell legacy games until Dec 2024.
- Pro forma shows cash increase of ~$3.8M (to $5.8M) and reduction in net loss by $2.99M for FY2022 and H1 2023.
- Company will focus on remaining assets: INDYCAR, rFactor 2, KartKraft, BTCC; plans a comprehensive commercial review of all projects.

## SEC filing metadata
- accession: 0001493152-23-035756
- form_type: 8-K
- ticker: MSGM
- cik: 0001821175
- company_name: Motorsport Games Inc.
- filed_at: 2023-10-05T23:59:59+00:00
- event_type: m_and_a
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 2.01, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1821175/000149315223035756/0001493152-23-035756-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1821175/000149315223035756/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-23-035756
- JSON: https://secwatch.observer/filing/0001493152-23-035756.json
- Plain text: https://secwatch.observer/filing/0001493152-23-035756.txt

## Key facts
- M&A Transactions
  Motorsport Games Inc. completed a disposition involving iRacing.com Motorsport Simulations, LLC for $5,000,000 at closing (closed 2023-10-03).
  - Action: disposition
  - Counterparty: iRacing.com Motorsport Simulations, LLC
  - Consideration: $5,000,000 at closing
  - Closing: 2023-10-03
  source text: iRacing paid to 704 $5,000,000 at closing of the transactions contemplated by the Assignment
  evidence_url: https://www.sec.gov/Archives/edgar/data/1821175/000149315223035756/0001493152-23-035756-index.htm
- Material Agreements
  Motorsport Games Inc. entered into Assignment and Assumption Agreement with iRacing.com Motorsport Simulations, LLC valued at $5,000,000 (effective 2023-10-03).
  - Action: entry
  - Agreement: asset purchase
  - Counterparty: iRacing.com Motorsport Simulations, LLC
  - Value: $5,000,000
  - Effective: 2023-10-03
  source text: On October 3, 2023, Motorsport Games Inc. (the “Company”) entered into an Assignment and Assumption Agreement (the “Assignment”) among the Company, 704GAMES LLC, a Delaware limited liability company (successor by merger to 704 Games Company, a Delaware corporation) and a wholly owned subsidiary of the Company (“704”), and iRacing.com Motorsport Simulations, LLC (“ iRacing ”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1821175/000149315223035756/0001493152-23-035756-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.