Liberty Media to accquire MotoGP
Liberty Media Corporation has expanded its portfolio of high-quality global sports assets after announcing an agreement to acquire MotoGP.
This new agreement will see Dorna Sports SL, 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, which acquired the Formula One Group in 2017 from private-equity firm CVC Capital Partners for £6.4 billion ($8 billion), 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.”
Dorna CEO 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.”
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.
Following the announcement regarding the agreement between Liberty Media Corporation and Dorna Sports SL, the FIM issued a statement welcoming the agreement and said in it’s own press statement: “The FIM is the owner of the following championships and has entered into agreements with Dorna Sports SL for the promotion of: the FIM MotoGP World Championship since 1992; the MOTUL FIM Superbike World Championship since 2015; the FIM JuniorGP World Championship since 2016; the FIM Enel MotoE World Championship since 2019 and the FIM Women Circuit Racing World Championship since 2023.
“The FIM is convinced that these World Championships will benefit from the strength and broadcast quality of Liberty Media Corporation and congratulates Greg Maffei and his team on these additions to their portfolio, which will undoubtedly help grow the sport for fans, teams, commercial partners and all related stakeholders.
“The FIM is delighted to continue its excellent relationship with Dorna Sports S.L., especially with Carmelo Ezpeleta and his management team, and look forward to working together towards the growth of this exciting sport.”
Picture caption:
(From left) Françoise Emery, FIM CEO; Jorge Viegas, FIM President; Carmelo Ezpeleta, CEO of Dorna Sports; and Gregorio Lavilla, WorldSBK Executive Director, as seen in 2023 at the launch of the FIM Women Circuit Racing World Championship. Photo courtesy Dorna.