
Formula 1 owner Liberty Media is on the verge of finalizing its acquisition of the MotoGP World Championship for approximately €4 billion. This significant deal is poised to be announced imminently, possibly preceding the third round of the 2024 MotoGP season at the Americas Grand Prix scheduled for 12-14 April.
Executives from Liberty Media and Dorna Sports, the key promoter of MotoGP, WorldSBK, and MotoE World Championships, reached an agreement several weeks ago. Initially targeted to be made official prior to the start of the racing season in Qatar, the process was temporarily stalled due to concerns regarding the intervention of the European Commission, the regulatory body overseeing competition markets.
Reports from the Financial Times suggest that the takeover deal is essentially confirmed, although scrutiny from competition regulators is expected. Notably, in the past, CVC Capital Partners, an investment fund based in Luxembourg, had ownership over both F1 and MotoGP until 2006, when European antitrust authorities mandated divestiture, leading to MotoGP’s sale.
While Liberty Media emerged as the preferred bidder for Dorna executives, alternative bids surfaced from entities like Qatar Sports Investments and TKO, a media and entertainment conglomerate with ownership rights to the UFC Championship. The sale of Dorna became a focal point for Bridgepoint and the Canadian pension fund (CPPIB) in recent times, with Bridgepoint, CPPIB, and other stakeholders owning significant shares in Dorna Sports.
Dorna Sports witnessed substantial growth in 2022, with a turnover of €474.8 million, representing a 33% increase from the previous year, despite a closing loss of €7.8 million attributed to pandemic-related impacts. A strategic move in early 2022 saw Dorna Sports refinance €975 million of debt, bolstering liquidity and enabling shareholder dividends amounting to €390 million.
Liberty Media’s transformative approach to Formula 1 since its acquisition in 2016, notably through initiatives like Drive to Survive, has elevated the sport’s popularity to unprecedented levels. With a calendar expanding to 24 races in 2024, Formula 1 has seen remarkable financial gains under Liberty’s stewardship. Capitalizing on this success, Liberty Media aims to replicate its triumphs in Formula 1 within the MotoGP sphere.
In conclusion, the impending acquisition of MotoGP by Liberty Media signifies a pivotal moment in the motorsports landscape. With a rich history and promising future, MotoGP stands to benefit from the expertise and resources that Liberty Media brings to the table.
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