MotoGP: F1 owner Liberty Media takes over MotoGP for $4bn (Update)

(GMM) Greg Maffei, the CEO of Formula 1 owner Liberty Media, is confident the group’s acquisition of MotoGP will go through.

Liberty’s intention to also buy the two-wheeled equivalent of F1 was announced way back in April, pending securing the financing and regulatory approval.

Maffei is now confident the deal will go through by the end of the year.

“We have secured all the necessary financing for our MotoGP acquisition project,” he is quoted as saying by Ouest-France newspaper, referring to the 86 percent purchase valued at over 4 billion euros.

However, many insiders think the much bigger hurdle of the approval of the European Commission, as F1’s previous owner CVC was banned in 2006 from owning both Formula 1 and MotoGP.

“We are making progress with the European Commission,” said Maffei, “which is the only remaining jurisdictional regulatory hurdle. We continue to hope for closure by the end of the year.”

After offering to buy the floundering IndyCar Series and being rejected, Liberty Media Corporation has bought the global MotoGP series instead.

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.”

Previously, 40% owned by  Canadian fund Bridgepoint 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.