The news of Liberty Media's acquisition of MotoGP, previously anticipated by Financial Times, was finally confirmed today. This important step marks a turning point in the Motorsport panorama, especially for the American giant, which with this move secures enormous sporting power. However, the path towards official status is not without obstacles, as the agreement will have to be subjected to Antitrust scrutiny. The acquisition by Liberty Media, already owner of the Formula 1 rights, of Dorna Sports, owner of MotoGP and Superbike, represents a win-win deal for both parties.
The official announcement arrives, Formula 1 and MotoGP under the same roof
Dorna Sports and Liberty Media have reached an agreement. The news was also relaunched yesterday by Sky Sports UK which confirmed the date of April 1st for the official arrival. At the basis of this agreement is Dorna's desire to re-emerge from a delicate financial situation. In fact, the group found itself with debts that far exceed its annual turnover. On the other hand, Liberty Media enjoys a much more solid economic situation, which has developed especially in the post-pandemic years. The acquisition allows it to expand its sports product portfolio. The arrival of MotoGP and the other categories represents an opportunity for Liberty Media also compared to agreements with sponsors, which would have a broader catalogue.
With the official acquisition, Liberty Media positions itself as a dominant player in the world of Motorsport, managing enormous sporting power that could revolutionize the landscape of two-wheel racing. However, It remains to be seen how the agreement will affect the future of competitions, with possible changes in racing calendars and new marketing strategies.
With the announcement now the only obstacle to overcome now concerns authorizations.
The press release
This new agreement will see Dorna Sports SL, the exclusive holder of the commercial and television rights to MotoGP™, remain an independently managed company attributed to the Formula One monitoring actions of Liberty Media Group. Carmelo Ezpeleta, CEO since 1994, will retain his position and continue to manage the company with his management team. The company headquarters will remain in Madrid.
Dorna also holds exclusive rights to other motorcycle racing series, including Moto2 and Moto3, the FIM Enel MotoE World Championship, the MOTUL FIM Superbike World Championship and the new FIM Women's World Circuit Racing Championship.
Liberty Media will acquire approximately 86% of Dorna, while Dorna management will retain approximately 14% of its equity in the business. The transaction reflects an enterprise value for Dorna/MotoGP of €4,2 billion and an asset value of €3,5 billion, with the balance of MotoGP™'s existing debt expected to remain in place post-closing.
Statements from Liberty Media and Dorna
“We are excited to expand our portfolio of live sports and entertainment businesses with the acquisition of MotoGP,” said Greg Maffei, president and CEO of Liberty Media. “MotoGP is a global championship with a loyal and enthusiastic fan base, exciting racing and a highly cash flow generative financial profile. Carmelo and his management team have built a great sports spectacle that we can expand to a broader global audience. The business has significant potential and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders."
“This is the perfect next step in the evolution of MotoGP and we are excited about what this milestone will bring to Dorna, the MotoGP paddock and racing fans,” said Carmelo Ezpeleta, CEO of Dorna. “We are proud of the global sport we have grown and this transaction is a testament to the value of sport today and its growth potential. Liberty Media has incredible experience developing sports assets and we couldn't ask for a better partner to expand the MotoGP fan base around the world.
“The acquisition is expected to be completed by the end of 2024 and is subject to receipt of clearances and approvals from competition and foreign investment law authorities in various jurisdictions.”
