Liberty Media Corporation, owners of the Formula One racing championship, have announced an agreement to acquire the MotoGP championship, and related assets, from current owner Dorna. The agreement, which is subject to certain contingencies described in the press release below, will result in Liberty Media owning approximately 86% of Dorna. The Dorna assets acquired would include other World championships, such as Moto2, Moto3 and the Superbike World Championship.
Should the deal be consummated, it appears that Liberty Media would not take over until the 2025 season. There is an interesting analysis of the potential impact of Liberty Media’s ownership of MotoGP on the Motorsport website.
Here is the press release:
Liberty Media Corporation has announced an agreement to acquire MotoGP™. MotoGP™ is the pinnacle of two wheels, with 22 of the fastest riders competing on purpose-built prototype motorcycles on some of the world’s greatest racetracks, reaching top speeds above 360 kilometers per hour/223 miles per hour. From the first season in 1949 that staged six rounds across Europe, the sport has grown to comprise more than 20 Grands Prix across five continents, with the television broadcast reaching hundreds of millions around the world.
This new agreement will see Dorna Sports S.L., the exclusive commercial and television rights holder of MotoGP™, remain an independently run company attributed to Liberty Media’s Formula One Group tracking stock. Carmelo Ezpeleta, who has been CEO since 1994, will remain in his position and continue to run the business with his management team. The business will remain based in Madrid.
Dorna also holds exclusive rights to other motorcycle racing series, including MotoGP™ feeder series Moto2™ and Moto3™, the FIM Enel MotoE™ World Championship, the MOTUL FIM Superbike World Championship and the new FIM Women’s Circuit Racing World Championship.
Liberty Media will acquire approximately 86% of Dorna, with Dorna management retaining approximately 14% of their equity in the business. The transaction reflects an enterprise value for Dorna/MotoGP™ of €4.2 billion and an equity value of €3.5 billion, with MotoGP’s™ existing debt balance expected to remain in place after close.
“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. “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,” said Carmelo Ezpeleta, CEO of Dorna. “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 Media 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.
”The acquisition is expected to be completed by year-end 2024 and is subject to the receipt of clearances and approvals by competition and foreign investment law authorities in various jurisdictions.
About Liberty Media Corporation
Liberty Media Corporation operates and owns interests in a broad range of media, communications and entertainment businesses. Those businesses are attributed to three tracking stock groups: the Liberty SiriusXM Group, the Formula One Group and the Liberty Live Group. The businesses and assets attributed to the Liberty SiriusXM Group (NASDAQ: LSXMA, LSXMB, LSXMK) include Liberty Media’s interest in SiriusXM. The businesses and assets attributed to the Formula One Group (NASDAQ: FWONA, FWONK) include Liberty Media’s subsidiaries Formula 1 and Quint, and other minority investments. The businesses and assets attributed to the Liberty Live Group (NASDAQ: LLYVA, LLYVK) include Liberty Media’s interest in Live Nation and other minority investments.
About Dorna Sports, S.L. & MotoGP™
Dorna Sports became the sole commercial and television rights holder of the FIM MotoGP™ World Championship in 1991. Based in Madrid, with premises in Barcelona and a subsidiary in Rome, Dorna is a leader in sports management, marketing and media, and has seen continued growth over the years, expanding from solely MotoGP™ to include other leading motorcycle racing championships across the globe. Dorna holds exclusive rights to MotoGP feeder series Moto2™ and Moto3™, MotoE™, the Superbike World Championship and the FIM Women’s Circuit Racing World Championship.
MotoGP™ is the pinnacle of motorcycle racing, with 22 of the fastest riders competing on purpose-built prototype motorcycles on some of the world’s greatest racetracks. MotoGP features top speeds above 360 kilometers per hour (223 miles per hour) and lean angles of over 60 degrees. Since 1949, the sport has grown to comprise more than 20 Grands Prix across five continents, with the television broadcast reaching hundreds of millions around the world.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including certain statements relating to the proposed transaction and its completion and statements relating to our expectations regarding the Formula One Group business, and Dorna and its MotoGP business and prospects. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws. These forward-looking statements generally can be identified by phrases such as “possible,” “potential,” “intends” or “expects” or other words or phrases of similar import or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” “could,” or similar variations. These forward-looking statements involve many risks and uncertainties that could cause actual results and the timing of events to differ materially from those expressed or implied by such statements, including, but not limited to: historical financial information may not be representative of future results; there may be significant transaction costs and integration costs in connection with the proposed transaction; the parties may not realize the potential benefits of the proposed transaction in the near term or at all; the parties may not satisfy all conditions to the proposed transaction, including the failure to obtain regulatory approvals; the proposed transaction may not be consummated; there may be liabilities that are not known, probable or estimable at this time; the proposed transaction may result in the diversion of management’s time and attention to issues relating to the proposed transaction and integration; unfavorable outcome of legal proceedings that may be instituted against the parties following the announcement of the proposed transaction; risks inherent to the business may result in additional strategic and operational risks, which may impact Liberty Media’s risk profile, which it may not be able to mitigate effectively; and other risks and uncertainties detailed in periodic reports that Liberty Media files with the SEC. These forward-looking statements speak only as of the date of this press release and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty Media, including its most recent Form 10-K, as such risk factors may be amended, supplemented or superseded from time to time by other reports Liberty Media subsequently file with the SEC, for additional information about Liberty Media and about the risks and uncertainties related to Liberty Media’s businesses which may affect the statements made in this press release.
I have to wonder if they are going to try to revive something that died twenty years ago. Or are they going to simply put a new dress on the mummified corpse. I can’t help but notice that they are buying up the Euro centric motorcycle racing series that gobbled up all the factory support and hung the AMA out to dry. Without the AMA road racing will never again be global. Without global impact, like motocross enjoys, the global riders will continue to shun sport bikes in favor of these ADV things that have even eaten into the touring bike market. Everything is in dirt bike drag now days. Even Ducati chose a supermoto instead of a supermono for its new single. Even while it dominates road racing. Market reality gentleman.
The damage has long been done. If you ask me Dorna liberated a couple of billion bucks from Liberty for a body that they killed and mummified. Look at the praise here. They talk about what a great job Dorna did turning a sport into a better TV show. I guess that’s OK if you are selling televisions.
I hope for the best, but in my opinion, MotoGP has been in a slow decline since the days of Rossi, Lorenzo, Stoner, M. Marquez, Pedrosa, etc., declined from their golden days.
Now, the guys calling the races seem more artificial with trying to drum-up excitement, and the way they plaster the images of the riders on the screen with a sneer on their face like they’re some kind of tough guy seems silly and seems they’re trying dumb ideas in an attempt to reach for viewership.
The last few years it’s been noticeably less interesting, and even the new theme music introduced last year is crap.
Time will tell.
Evidently you are watching a completely different series that I am.
Been a fan since the late 70s or so and I couldn’t agree with you more.
I see it exactly the opposite. A few things have changed since the Rossi/Stoner/Lorenzo days.
There are more bikes on the grid.
There are far more win-capable teams and riders on the grid.
The racing is far closer than it has ever been before. The old guys used to lap half of the field, now last place finishes on the lead lap and a dominant win is 3 sec.
All of that ^ proves that the quality of the racing is objectively better than before.
… or, Everyone within 1 sec at qualifying, could be all the machines are the same, and its fortune if one puts in a good lap, not rider ability.
What you can be sure of is that any last vestiges of technical interest will be submerged in the personality circus. Boring…
The writing was really on the wall with the addition of sprint races nonsense.
As an F1 and MotoGP fan, this falls into the category of; new boss, same as the old boss. Liberty is sucky, but Dorna was no peach.
Prepare yourselves for more emphasis on the “show” with the racing taking a back seat.
I say thank goodness for fast forward.
One report I read today said they are going back to old school..doing away with aero and rider aids, allowing 2 strokes and switching from Michelins to Pirellis
I thought it was an April Fools joke too
I’ve heard that they will use 100 percent sustainable fuel and 850сс engine starting from 2027.
Here comes the suck!
april fools?
No, it’s true. Been in the works for awhile.
My head is still spinning from all the legal jargon. whirrrrrrrrr.