Formula 1 Owners Liberty Media Announces MotoGP Acquisition

Liberty Media Corporation, owners of Formula 1, officially announced its acquisition of the sport's two-wheeled counterpart MotoGP. (Image: Mercedes-AMG Petronas & MotoGP.com)

It’s been brewing for sometime now, and was more or less confirmed by paddock insiders since early this year. Now, it’s official – Liberty Media Corporation, owners of the resurgent Formula 1 racing series, formally announced its acquisition of the sport’s two-wheeled counterparts MotoGP.

 The American entertainment company, which owns the rights to Formula 1 since 2016, will reportedly take over Dorna Sport SL, owners of MotoGP since 1992. The latter Madrid-rooted firm also controls WSBK and the MotoE World Cup. The acquisition is set to be completed by end of this year.

Liberty Media's acquisition of Dorna Sport SL, MotoGP's rights holders, reportedly totalled at a sum of €4.2 billion (approx. RM21.41 billion). (Image: MotoGP.com)

The deal is reportedly valued at the sum of €4.2 billion (approx. RM21.41 billion), and will see Liberty take 86% of Dorna’s shares. The remaining 14% will remain in the hands of MotoGP’s current management led by CEO Carmelo Ezpeleta. 

Previously, 40% of Dorna shares were owned London-based investment firm Bridgepoint, who acquired its stake in 2006 from CVC Capital Partners, with 38% owned by Canadian pension fund (CPPIB), and the remaining 22% divided between various Dorna executives led by Ezpeleta.

Despite both parties reportedly agreeing on terms for some time, possible intervention by the European Commision’s competition market regulators caused the announcement’s delay – it was initially slated for MotoGP’s season opening race weekend at Portimao, Portugal, last month.

In relations to which, it remains unclear at this stage how said commission will react. Back in 2006, CVC made a similar bid to take control of both sports. However, European antitrust authorities forced the Luxembourg fund to rid its interests in MotoGP before finalising its purchase of Formula 1.

Liberty Media reportedly beat out other bidders for MotoGP that included Qatar Sports Investments, Qatar's sovereign wealth fund, and UFC combat sport owners TKO. (Image: Mercedes-AMG Petronas F1).

Despite the acquisition, much of Dorna's top management - including CEO Ezpeleta - are expected to retain their positions and roles. (Images: Dorna & MotoGP.com)

Liberty was long understood to be Dorna’s choice, but it’s not the only one. Reports indicate other bidders included Qatar Sports Investments, Qatar's sovereign wealth fund, and TKO – rights owners of the UFC fighting championship.

The business case behind Liberty’s bid is fuelled by the fact that Ezpeleta made no secret about putting MotoGP up for sale. Adding to which are the clear post-pandemic business figures generated by the sport warranting a sale.

Dorna last filed its figures in 2022 where it generated turnover of €474.8 million (approx. RM2.42 billion). Though this marked a 33% increase from 2021, it still left Dorna to post €7.8 million (approx. RM39.76 million) in losses – likely a continued effect of the Covid-19 pandemic.

Those currently in key positions managing MotoGP, including CEO Ezpeleta and his son Carlos who is Sporting Director, will continue to helm them – likely based on their current employment contracts. However, Liberty personnel are expected to enter the MotoGP paddock soon.

Liberty Media President & CEO Greg Maffei (left), Dorna CEO Carmelo Ezpeleta (right). (Images: Liberty Media & Dorna)

“We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” said Greg Maffei, Liberty Media President and CEO. “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,” adds Dorna CEO Ezpeleta, further.

With Liberty's entry and subsequent control, it is understood that the entertainment giant intends to replicate similar strategies in MotoGP as it did with Formula 1 in 2016, the latter to unprecedented success too. Included here was a certain Netflix docu-series called Drive To Survive.

At the same time, Liberty is also widely expected to increase MotoGP’s presence in the United States – a territory in which Dorna has long set its sights on. Presently, MotoGP only has one annual North American race held at the famed Circuit of The Americas in Austin, Texas.

Image: MotoGP.com