Liberty Media, owners of Formula 1, are on the verge of signing on the dotted line and buying the rights of MotoGP from the current holders Dorna. If the deal goes through it will be a monumental coup for the US firm as it will hold the rights of the pinnacle of motorsports in both single-seater racing and motorcycle world championships.
According to Financial Times, Liberty Media and the Madrid-based company, are “close” to bringing the four-wheeler and two-wheeler sports under one banner. Financial Times further reported that Liberty Media has offered $4.32 billion to Dorna, which includes writing off the debt, an announcement is in the pipeline.
Liberty Media and Dorna: It’s may not be all smooth sailing
Based on the FT report, there was a three-way bidding war between Liberty Media, Qatar Sports Investments which owns Paris Saint-Germain football club, and the owners of Ultimate Fighting Championship, William Morris Endeavor. This is not the first time an F1 owner has eyed the prized rights of MotoGP. Earlier, Bernie Ecclestone and CVC Capital Partners bid to have total control over the two world championships was routed by European Commission antitrust officials.
In 2006, CVC was forced to sell its shares to investment fund Bridgepoint, which currently owns 40 per cent of Dorna. Speaking to Financial Times, James Killick, competition lawyer at White & Case, said, “I’d be very surprised if competition regulators didn’t look at it,” he said. “The question is, has the market changed?”, he added.
MotoGP: What could new owners mean?
Dorna’s top stakeholders are Bridgepoint, the Canada Pension Plan Investment Board and the chief executive Carmelo Ezpeleta, who has been at the helm for 30 years.
Liberty Media is looking to change the fortunes of Dorna as they did with Formula 1. The US-based company completed its 100 per cent acquisition in 2017 and has increased its profit to stratospheric levels. According to Financial Times, F1 registered a 64 per cent profit to $392 in 2023 propelling the revenue from $2.5 billion to $3.2 billion. Liberty Media has successfully promoted Formula 1 globally with the superhit Netflix documentary Drive to Survive. The US company has also introduced Formula 1 at new venues like Las Vegas, Jeddah, Miami and Doha.
