If Formula 1 is the pinnacle of motorsport on 4 wheels, MotoGP is its counterpart on 2 wheels. However, the two have remained kind of disjointed for a long time with different owners running the show how they want to run it. But all that’s about to change as Liberty Media Corporation, the commercial rights holder of Formula 1 has finally confirmed that they have now acquired 86% stakes in MotoGP from its original commercial and television rights holder Dorna Sports, S.L., which has been running the competition since 1992, in a deal worth €4.2 billion. The American entertainment company, that originally bought the rights to Formula 1 back in 2016 for $8 billion has raised its enterprise value to $18.6 billion in 2023, and we expect a similar growth in the future for MotoGP as well.

MotoGP boasts 22 of the fastest riders competing on specialized motorcycles, reaching astonishing speeds exceeding 360 kilometers per hour (223 miles per hour) on renowned racetracks worldwide. Since its inception in 1949, the sport has expanded significantly, now featuring over 20 Grands Prix across five continents, with its television broadcasts captivating millions of viewers globally. What’s interesting about Liberty Media’s acquisition of MotoGP is that Dorna Sports will continue to operate as an independent entity under Liberty Media’s Formula One Group tracking stock. Both Carmelo Ezpeleta, CEO of Dorna Sports, and Greg Maffei, President and CEO of Liberty Media, expressed their enthusiasm about the deal which is expected to be finalized by the end of 2024, pending regulatory approvals.

Carmelo Ezpeleta will retain his position at the helm of MotoGP

This deal has been in the works for a while, but it’s been held up waiting for the green light from competition and foreign investment authorities. Everyone involved was hoping to announce it earlier, but some regulatory hurdles slowed things down. Under the terms of the agreement, Liberty Media will acquire approximately 86% of Dorna, with the management team retaining around 14% equity. The transaction values Dorna/MotoGP at €4.2 billion in enterprise value and €3.5 billion in equity value, with existing debt expected to be retained post-closure.

What’s interesting is how they’re paying for it: mostly cash (65%) and some shares of Liberty Formula One stock (21%). Greg Maffei, President and CEO of Liberty Media, expressed his excitement about the acquisition, highlighting MotoGP’s loyal fan base and promising financial prospects. But why buy MotoGP? Maffei explained as per the official statement from Liberty Media, “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.“

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Carmelo Ezpeleta echoed the sentiment and expressed his enthusiasm for the partnership with Liberty Media. He said, “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.“

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There have been times in the past when different entities have had their eyes on MotoGP, and it’s no different in the present times

Liberty Media wasn’t the only entity interested in buying the premier motorcycle racing league

Back in 2006, CVC Capital Partners, a Luxembourg-based private equity and investment advisory firm wanted to take the reins of both Formula 1 and MotoGP. But the European antitrust authorities stepped in, worried that having one company control both series could stifle competition. So, they put their foot down and made CVC give up its interests in MotoGP before they could seal the deal with Formula 1. It was all about keeping things fair and open within the European Union.

Even with the current deal, Dorna had options when it came to choosing a new owner. Liberty Media was their preferred choice, but they weren’t the only player in the game. Qatar Sports Investments were also in the running. However, it seems Liberty’s offer stood out for its promise of a smooth transition. There’s speculation that key figures in MotoGP, like Ezpeleta and his son Carlos, might stick around for a while, ensuring stability during the transition. And with the next big event, the United States Grand Prix, just around the corner, it won’t be long before we see Liberty Media’s influence in the MotoGP paddock. They seem keen to replicate the success they’ve had with Formula 1.

There are exciting times ahead for MotoGP fans all around the world. What are your expectations from Liberty Media in terms of taking the popularity of MotoGP even further?