The acquisition of
Dorna
from Liberty Media marks a significant milestone in the world of motorsports. This strategic move, confirmed after months of speculation, sees Liberty Media obtaining a majority stake of 86% in Dorna, the organization responsible for
MotoGP
,
MotoE,
Superbikes, of the women’s track championships and numerous other competitive events worldwide. This historic development brings the MotoGP and the
Formula 1
under the same organizational umbrella, potentially transforming the landscape of two- and four-wheel racing.
Context of the acquisition
Liberty Media’s involvement in MotoGP had been anticipated, with several indicators pointing towards this eventuality. The nomination of Dan Rossomondo to a prominent position in Dorna, together with the introduction of the first US sponsor (eBay) and negotiations with the American broadcaster TNT, signaled the clear intention to integrate MotoGP into Liberty Media’s portfolio. Other signs were the frequent presence of Stefano Domenicaliin the MotoGP paddock and the birth of the new Team Trackhouse.
Strategic implications for MotoGP
The acquisition by Liberty Media is expected to bring significant benefits to both parties. Dorna acquires a partner with a proven track record of increasing the commercial value of motorsports, as demonstrated by Liberty Media’s success with Formula 1. For Liberty Media, the acquisition offers the opportunity to diversify and expand your influence in motorsports at a relatively low cost.
Comparative analysis: MotoGP and Formula 1
The turnover of MotoGP, about a sixteenth of that of Formula 1, highlights the growth potential under Liberty Media’s leadership. The Formula 1 revenue rose to $3.2 billion in 2023, thanks to increased sponsorships, broadcast rights and a thriving global fan base. By way of comparison, the come in MotoGP totals from sponsors were $87.95 million in 2023while the total revenue of the series they reached 486 million euros. The disparity between these figures highlights the ample opportunity for MotoGP to replicate some of Formula 1’s successful strategies.
Lessons from Formula 1 success
Liberty Media’s management of Formula 1 over the past eight years provides a model for the potential evolution of MotoGP. Key strategies that have contributed to the exponential growth of Formula 1 include:
- Demographic expansion: Attract a younger, more diverse global audience.
- Advanced multimedia content: Produce world-class content that elevates the entertainment value and commercial potential of sport.
- Event show: transforming races into major events with record attendance.
- Profit redistribution: Implement a system that guarantees healthy budgets for all teams through the sharing of profits deriving from television and media rights.
- Iconic series: The success of “Drive to Survive” on Netflix, which increased fan engagement and broadened the appeal of the sport.
Potential challenges and opportunities
Despite the promising outlook, several challenges and opportunities await us. Key areas of interest include:
- Media and broadcast: Address the need for more flexible media manipulation to amplify the reach of sport. Redefine broadcast agreements to increase ratings, particularly in countries with stagnant or declining audiences.
- US market penetration: Increase the number of US-based events to access the large American market.
- Sponsorship and Revenue: Reevaluate the commercial revenue sharing system to attract new sponsors and improve the financial stability of teams.
- Technological regulations: Adapt participation regulations to emphasize on-track competition over technological advances, thus making racing more exciting and accessible to a wider audience.
The future of MotoGP under Liberty Media
Liberty Media will focus on making the MotoGP more attractive from a commercial, media and economic point of view. This includes:
- Storytelling and branding: Enhance the narrative of the sport to highlight the athleticism, skill and drama of high-level motorcycle racing.
- Market expansion: Exploring new markets and engaging new manufacturers to broaden the appeal and financial base of the sport.
- Inclusivity and sustainability: Continue to integrate MotoE, promote the use of eco-friendly materials and fuels, and support initiatives that align with ESG (Environmental, Social, and Governance) principles.
The dawn of a new era
L’acquisition of Dorna by Liberty Media inaugurates a new era for MotoGP. With Liberty Media’s experience and resources, MotoGP is poised for substantial growth, both commercially and in global reach. This transformation is likely to bring exciting changes for fans, teams and commercial partners, positioning MotoGP alongside Formula 1 as a leading motorsport series.
Leveraging the proven strategies of Liberty Mediaand adapting them to the unique context of motorcycle racing, the MotoGP is preparing to embark on an exciting journey of growth and transformation.
