Formula 1 owner Liberty Media has finalised its purchase of MotoGP parent company Dorna Sports, an announcement confirmed Monday.
The $4 billion deal to acquire Dorna Sports gives Liberty commercial control over MotoGP and World Superbikes
Liberty will take 86% of the shares of the Spanish company, with the remaining 14% remaining with MotoGP management.
Previously, 40% was owned by Bridgepoint – the Canadian fund that acquired its stake in 2006 from CVC Capital Partners – and 38% by the Canadian pension fund (CPPIB). The remaining 22% was divided between various Dorna executives, with Carmelo Ezpeleta (10%), the CEO, as the leading figure.
The new agreement will see Dorna remain an independently run company under the Liberty banner with Ezpelata remaining CEO and operations continuing to be based out of Madrid, Spain.
Earlier reports hinted that the intention was to make the agreement official before the first race of the 2024 season in Qatar, but due to concerns about the intervention of the European Commission, the body that regulates the competition market, plans were slowed.
The Financial Times suggested when rumours were circulating that a deal could face regulatory scrutiny.
Private equity firm CVC Capital Partners once owned both F1 and MotoGP and was subsequently forced to sell the motorcycle series in 2006 as a condition of buying F1 after EU competition regulators raised concerns.
In 2022, Dorna Sports generated a turnover of €474.8 million, an increase of 33% over the previous year, although the year ended with a loss of €7.8m, as a result of the impact of the pandemic. (Source: Autosport)
At the beginning of 2022, the Madrid-based company refinanced €975m of debt, a resource that allowed it to strengthen its liquidity, and also to distribute dividends worth €390m to its shareholders.
“We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” Greg Maffei, Liberty Media President and CEO, said in a statement.
“MotoGP is a global league with a loyal, enthusiastic fan base, captivating racing and a highly cash flow generative financial profile.
“Carmelo and his management team have built a great sporting spectacle that we can expand to a wider global audience.
“The business has significant upside, 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 for what this milestone brings to Dorna, the MotoGP paddock and racing fans,” Carmelo Ezpeleta, CEO of Dorna, added.
“We are proud of the global sport we’ve grown, and this transaction is a testament to the value of the sport today and its growth potential.
“Liberty has an incredible track record in developing sports assets and we could not wish for a better partner to expand MotoGP’s fanbase around the world.”
With Liberty Media proving their worth as Formula 1 owners by making the pinnacle of four-wheeled racing profitable, the business model of MotoGP, WorldSBK and MotoE would seek to replicate that.
Liberty’s tenure as F1 proprietor began in 2017 and the sport has grown in popularity since and the value of the team’s within it has grown in tandem.
There is no doubt that Liberty will want to replicate its success from its Formula 1 venture with its new two-wheeled racing product.
