News that could shock and revolutionize the world of racing. The owner of the Formula 1, Liberty Mediais now in advanced negotiations, for some it would have already closed, to purchase the company that owns MotoGP, the Dornafor a figure above 4 billion eurosin an agreement that would unite the two leading classes of engines, the F1 precisely and the MotoGP.
F1 gets its hands on MotoGP: Liberty Media buys Dorna
According to what was reported by Motorsport.comLiberty Media, holder of the rights to Formula 1, would have now finalized the purchase of the MotoGP world championship by beating the offer of TKO, a sports and entertainment group managed by Ari Emanuel. Liberty’s offer values Dorna at over 4 billion eurosincluding debt.
The agreement, which could be announced in the next few days, should have been reached on the basis of a figure of around 4 billion euros, with the top management of Liberty Media and Dorna Sports, promoter of MotoGP, but also of WorldSBK (the Superbike World Championship) and MotoE (the electric class alter ego of the four-wheeled Formula E) which would have already completed the operation a few weeks ago.
The agreement, writes Motorosport, could be announced in the next few days, before the next MotoGP event on the calendar, the United States Grand Prix scheduled for April 12th. The intention of both parties was to make it official before the Qatar Grand Prix, the first event of the MotoGP season, but then it was decided to wait for the approval from the Antitrust Commission on the operation which will revolutionize the world of racing by creating a kind of monopoly.
Liberty Media, after F1 we take MotoGP: beaten competition
Liberty Mediachaired by telecommunications and entertainment billionaire John Malone, would close the acquisition of Dorna Sports after rejecting a rival bid from TKO, the sports and entertainment group run by Hollywood power broker Ari Emanuel. Also Qatar Sports Investmentsthe state-backed group that owns the French football team Paris Saint Germainhas expressed interest in Dorna and has held talks with its owner, Bridgepoint, the private equity firm.
F1 and MotoGP together: the antitrust obstacle remains
One issue remains: that of antitrust. James Killick, a lawyer in the sector, told the Financial Times, showing more than a few doubts: “I would be surprised if the guarantor authorities did not deal with this matter. The question at this point is: has the market changed?”.
F1 and MotoGP under the same master: the scenarios
Bridgepoint and the Canada Pension Plan Investment Board they are the main shareholders of Dorna. Shareholders are also the management of Dornaincluding the CEO Carmelo Ezpeleta who led Dorna for 30 years, a bit like Bernie Ecclestone did in F1 right before the arrival of Liberty Media.
Buying MotoGP would give Liberty Media, led by chief executive Greg Maffei, a chance to demonstrate that its success in boosting F1’s popularity was not an isolated case. Like F1, MotoGP’s business model revolves around broadcast rights, circuit fees, sponsorships, corporate hospitality and merchandising.
As the Financial Times in an article, with Liberty, F1 made promoting the sport on social media a priority and gave Netflix unprecedented access to make the reality series Drive to Survive. The program focused on drivers, team chiefs and owners and was credited with broadening the sport’s fan base. Liberty took F1 to Miami, Las Vegas, Jeddah and Doha, expanding the calendar to a record 24 races this year. F1’s operating profit rose 64% to $392 million in 2023 from the previous year, while revenue rose to $3.2 billion from $2.5 billion.
Dorna’s revenues in 2023 amounted to 483 million euros. Bridgepoint, a Dorna shareholder for 18 years, owns around 40% of the company purchased in 2006 for an enterprise value of 550 million euros. The CPPIB bought its 39% stake in Dorna from Bridgepoint in 2012.
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