MOTOGP
Official: Liberty Media buys MotoGP
Formula One’s US-based owner Liberty Media has announced the acquisition of MotoGP’s parent company. Carmelo Ezpeleta will continue in his position as CEO of the organization.
Speculation has been brewing for some time and after a week full of rumors, the news was finally confirmed on Monday morning. Through a statement, Liberty Media Corporation (FWONA) announced the purchase of the MotoGP World Championship. MotoGP will be attributed to Liberty Media’s Formula One Group tracking stock.
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The Colorado-based company that owns Formula 1 and commercial right holder Dorna Sports SL have reached an agreement to acquire the two-wheel championship, in which Liberty Media will obtain approximately 86% of Dorna, while the management of the Spanish organization will retain approximately 14% of their participation 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 expected to be maintained upon closing.
Dorna HQ to remain in Madrid
With this new agreement, Dorna Sports SL, exclusive holder of the commercial and television rights to MotoGP, will continue to be an independent company attributed to Liberty Media’s Formula One Group. Carmelo Ezpeleta, who has been CEO since 1994, will remain in his position and continue to lead the business with his management team. The business will continue to be based in Madrid.
“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.”
Carmelo Ezpeleta added: “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. 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 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.”
Dorna also promotes the World Superbike Championship and all-electric MotoE. The takeover could attract regulatory scrutiny. CVC Capital Partners, who sold Formula One to Liberty in 2017, were cleared by the European Commission to buy F1 in 2006 on condition they sold Dorna. Canada Pension Plan Investment Board (CPPIB) bought a 39% stake in Dorna from Bridgepoint in 2012. The remaining shares are owned by Dorna management.