Official: Liberty Media acquires MotoGP for over 4 billion euros
Liberty Media acquired Dorna by paying a colossal sum of 4.2 billion euros. This official acquisition confirms Liberty Media's entry into the world of MotoGP.
We had sensed it last week, it is now official: the owner of F1, Liberty Media, buys Dorna, the holder of the MotoGP rights, for 4.2 billion euros. In addition to the MotoGP, Dorna, based in Madrid, also manages Moto2, Moto3, WSBK, MotoE and the new FIM Women’s Circuit Racing World Championship.
In detail, Liberty Media will control 86% of Dorna, the rest being held by the company. The CEO of Dorna, Carmelo Ezpeleta, remains at the helm of the company. The transaction reflects an enterprise value of 4.2 billion euros for Dorna and an equity value of 3.5 billion euros, with existing MotoGP debt remaining in place post-closing.
The acquisition should be finalized by the end of 2024, but will be subject to approval by competition authorities in various jurisdictions, including the EU. Liberty will likely face their concerns due to the dominant, if not monopolistic, position they will hold in the sector. This was the case with CVC Capital Partners, which had to sell MotoGP in 2006 in order to acquire F1, following concerns raised by EU competition regulators.
« A significant growth potential »
“We are delighted to expand our portfolio of leading sports and entertainment assets with the acquisition of MotoGP,” said Greg Maffei, CEO of Liberty Media. “MotoGP is a global league with a devoted and enthusiastic fan base, thrilling racing, and a very cash generative financial profile. Carmelo (Ezpeleta) and his management team have built a great sports spectacle that we can develop for a broader global audience. The business has significant growth potential, and we intend to grow the sport for MotoGP fans, teams, commercial partners, and our shareholders.”
These are the next perfect steps in the evolution of MotoGP, and we are thrilled with what this milestone brings to Dorna, the MotoGP paddock, and racing fans,” said Carmelo Ezpeleta, CEO of Dorna. “We are proud of the global sport we have developed, and this transaction is a testament to the value of the sport today and its growth potential. Liberty Media has an incredible track record in developing sports assets, and we could not wish for a better partner to expand the MotoGP fan base worldwide.”
Difficult to give him the wrong: since its acquisition of F1 in 2017, Liberty Media has exploded the popularity of the top category of motorsport, also helped by the Netflix series “Drive to Survive”. We could therefore expect to see a series on MotoGP riders appearing in the relatively near future. And maybe they’ll also be racing in Miami and Las Vegas, as is now the case in F1. Everything is possible.
Let’s remember that the operating profit of F1 increased by 64% to reach $392 million in 2023 compared to the previous year, while revenue surged to $3.2 billion from $2.5 billion. Dorna’s revenue reached €483 million in 2023. No doubt that the Liberty Group wants to replicate with MotoGP what it has achieved with F1: bring back the audience in large numbers to the circuits, give it more prestige and international exposure. With a nice chunk of money at the end of the day.
