Liberty Media MotoGP Purchase Filed with European Commission as Sport's Fate Now Almost Sealed

Alex Harrington | Nov 15, 2024

Apr 14, 2024; Austin, TX, USA; Alex Marquez (73) of Spain and Gresini Racing MotoGP and Fabio di Giannantonio (49) of Italy and Pertamina Enduro VR46 rides during the MotoGP Grand Prix of The Americas at Circuit of The Americas. Mandatory Credit: Jerome Miron-Imagn Images / Jerome Miron-Imagn Images

Liberty Media, the expansive multinational media entity currently at the helm of Formula 1, has now filed with the European Commission for regulatory approval to acquire an 86% majority stake in Dorna Sports, the management hub for the MotoGP World Championship.

This development, initiated earlier this year, is now nearing a resolution. Liberty Media, valued at approximately $18.22 billion, aims to further expand its authority in the motorsport domain. Confirming the filing, CEO Greg Maffei said the following.

“We did file this morning [Thursday] with the EC for regulatory approval and we expect to be on track to receive that by year-end.”

Liberty Media, known for its robust holdings across entertainment and sports sectors, has over time shaped the commercial landscape of Formula 1. Holding interests in entities like Live Nation and Meyer Shank Racing, the company's latest endeavor with MotoGP signifies a deeper penetration into motorsports. As the process advances with the European Commission, the detailed investigation period extends up to 25 working days, promising a decision by December 19 unless prompted into a second phase for further inquiries, potentially stretching into the mid-2025 timeframe.

MotoGP, a prized property in global motorsports, encompasses a series of competitive events including Moto2 and Moto3.

"When you look at the weekend, at MotoGP, we really have a progression of sprint events, Moto2, Moto3 and then obviously MotoGP itself," Maffei explained.

This $4.5 billion acquisition is not merely about acquiring races but involves a broadcasting framework that delivers broadcasters up to 25 hours of content over a race weekend. Maffei discussed the value of these feeder series.

"Those very successful feeder series are not only important for building fan engagement, but they also provide broadcasters with up to 25 hours of content that they can use over the weekend."

While Liberty Media's acquisition continues, it faces scrutiny amid antitrust concerns. The company's grip on Formula 1, alongside the potential control of MotoGP, raises alarms over the risk of monopolistic practices.

Despite this, Maffei is more than optimistic:

“This is a great business; it is a rare opportunity to acquire a global league-level asset with centralised commercial rights and diversified revenue stream and quite high profitability."

He continued to note the increasing popularity and attendance in MotoGP circuits, indicating a 9% rise in the latter, maintaining record levels observed in 2023.

"The fanbase has been growing already before Liberty's involvement. Year to date, attendance is up about 9% on a like for like basis, and they're maintaining the record levels that they saw in 2023,” Maffei shared.

Apart from the European Commission's impending decision and potential antitrust obstacles, Liberty Media’s movements include financial recalibrations to materialize the acquisition. This involves refinancing existing loans associated with Formula One Group and raising incremental loans to bolster the funding strategy for integrating MotoGP into its portfolio.

As the deal edges closer, Liberty Media projects a compelling vision for the confluence of Formula 1, MotoGP, and by extension, World Superbikes, under its leadership. Despite assured operational separations, the potential monopolization of media rights and commercial engagement stands as a contentious issue across industry circles.

Separately, Greg Maffei announced his impending departure at the year's end, marking a transitional phase for Liberty Media amid this acquisition process.

"I will be stepping down from my role as Liberty CEO at the end of the year," he confirmed.