The world of car and motorcycle racing could soon be under one roof. Liberty Medium, already owner of Formula 1, is negotiating theacquisition of MotoGP, the top competition on two wheels, in a deal estimated at around 4 billion dollars. A move that would mark an important step forward in the relaunch of the MotoGP, bringing the two elite competitions under the same management. The reports it Financial Times stating that, after negotiations lasting more than a year, the agreement was finalized a few weeks ago and could be officially announced in mid-April during the GP of the Americas, the third MotoGP event scheduled in Austin.
Liberty Media bought F1 in 2017 for 8 billion.
Liberty Media beats competition to take over Dorna Sports
The American mass media company, led by the telecommunications and entertainment mogul John malone, is thus about to conclude theacquisition of Dorna Sports, a company that organizes the MotoGP and Superbike championships by acquiring the 40% stake of its largest shareholder, Bridgepoint, a private equity firm.
Liberty Media would have beat the competition in an auction in which they also participated Qatar Sports Investments (group that owns Paris Saint-Germain), e Who, a sports and entertainment group led by Ari Emanuel.
Dorna, based in Madrid, represents a unique investment opportunity in a global sport with lucrative commercial rights. It runs several competitions, including the Superbike World Championship and the MotoE electric motorcycle series, organizing 251 races a year in 20 countries.
In addition to Bridgepoint which has been a shareholder of Dorna for 18 years, acquiring it in 2006 for 550 million euros, the other major shareholder of the company is the Canada Pension Plan Investment Board (CPPIB) which purchased 2012% of its shares from private equity firms in 39. Another shareholder is the current CEO Carmelo Ezpeleta who led Dorna for 30 years, following the model of Bernie Ecclestone in Formula 1.
The Antitrust could block the marriage between MotoGP and F1
Any merger would create a giant in the sports sector, but it would require theantitrust approval European and other regulatory bodies. Always according to FT, in fact, any agreement regarding the acquisition of MotoGP by Liberty Media will be subject to rigorous regulatory scrutiny to ensure compliance with European Union competition and monopoly laws.
In 2006, the private equity firm CVC Capital Partners held both Formula 1 and MotoGP, but it was forced to sell the latter to Dorna following questions raised by EU regulatory authorities.
CVC then sold Formula 1 to Liberty Media in 2017 in an $8 billion deal.
The Liberty Media effect on F1
Under Liberty Media, Formula 1 has returned to fly, achieving notable success, especially among young people who had lost interest in racing. This success was achieved through a series of strategies, including growth in the United States, cost controls, investments in new media and technologies, production of the Drive to Survive series, improvements to racetracks and the introduction of new races (24 in total) in places such as Arabia Saudi, Miami and Las Vegas.
Under the guidance of Stefano domenicali, president and CEO of the Formula One Group, theFormula 1 operating profit increased by 64% in 2023 compared to the previous year, reaching $392 million, while revenues grew from $2,5 billion to $3,2 billion. Instead, Dorna's revenues in 2023 reached 483 million euros.
Liberty Medium aims to replicate the success achieved in Formula 1 in the world of motorcycling, which requires greater global expansion and broader country participation. The acquisition of MotoGP would offer the company, led by the CEO Greg maffei, the opportunity to demonstrate that his success in growing the popularity of Formula 1 was no accident.
And who knows…Maybe one could be born new competition, a sort of motoring super cup, pitting the champions of their respective world championships against each other. A duel between Verstappen and Bagnaia it could give rise to an exciting speed challenge.
