LONDON, Aug 15 (Reuters) - The owners of the World Rally Championship's commercial arm are exploring options including a possible sale of the business, seeking to bring in cash at a time of high valuations for sports media rights, according to people familiar with the matter.

The owners, Austrian drink group Red Bull and German investment company KW 25, are working with bankers at JPMorgan ( JPM ) to prepare for a potential sale of WRC Promoter GmbH as soon as later this year, the people said.

The owners are hoping that the Munich-based business can fetch a valuation of up to 500 million euros ($550.3 million), underpinned by earnings before interest, tax, depreciation and amortisation (EBITDA) that could reach more than 20 million euros this year, one of the people said.

The sources, who requested anonymity because the matter is confidential, cautioned that discussions were ongoing but a sale might not proceed.

Representatives for JPMorgan ( JPM ) declined to comment. WRC Promoter, Red Bull and KW 25 did not immediately respond to requests for comment.

WRC Promoter is jointly owned by Red Bull and KW 25, founded by businessmen Karl Wieseneder and Thomas Krohne, according to its website. Krohne also owns the American football team Munich Ravens, which is part of the European League of Football (ELF), in which he holds a stake, according to his LinkedIn profile.

A new owner for WRC Promoter would help to widen its global reach and expand into the U.S., the second person said, adding that private equity firms with deep pockets, high-net-worth individuals and larger sports media groups could be among the investors.

WRC Promoter is responsible for the commercial aspects of the FIA World Rally Championship (WRC) including TV production as well as media and sponsorship rights.

The WRC has been in existence since 1973 and comprises 13 four-day races on different continents, with the most famous being the Monte Carlo Rally. The current championship leader is Belgian racer Thierry Neuville, followed by Frenchman Sebastien Ogier. Since 2022, WRC Promoter has also organised the European Championship and the Rallycross Championship.

The shareholders are also looking to take advantage of the increasing value placed on commercial rights holders in sports, the people said.

Formula One's owner Liberty Media ( LLYVB ) earlier this year acquired Dorna Sports, the MotoGP owner, from Bridgepoint and Canada Pension Plan Investment Board (CPPIB) in a 4.2-billion-euro deal. The sale valued the business at more than 20 times EBITDA, one of the people said.

WRC Promoter had sales of 25.7 million euros and operating profit of 4.62 million euros in 2021, as it was hit by Covid-19 restrictions, according to the latest filings published by Germany's federal gazette Bundesanzeiger. The company said it would see sales grow the following year after taking over the European Championship and the Rallycross Championship.

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