Formula 1 owner Liberty Media buys MotoGP for $3.5 billion

Formula 1 owner Liberty Media buys MotoGP for $3.5 billion
Formula 1 owner Liberty Media buys MotoGP for $3.5 billion
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Liberty Media, the company that has owned Formula 1 since 2017, has purchased an 86 percent stake in Dorna Sports, owner of MotoGP, among others. The American company now has a majority share in the highest class of car racing and motorcycle racing.

“We are excited to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” said Greg Maffei, chief executive of Liberty Media, at the announcement. “MotoGP is a global competition with a loyal, enthusiastic fan base, exciting racing and a financial profile that generates a lot of cash flow.”

  • MotoGP is the queen class when it comes to motorcycle racing. The racers reach speeds of up to 360 kilometers per hour on circuits.
  • The sport has been around since 1949 and has grown in recent years. There are currently 21 races on five continents. 22 riders from 11 teams participate each time. The current championship is two races. The next match in the United States is scheduled for April 14.
  • Many fans find MotoGP more fascinating than Formula 1 because the outcome is much less predictable. For example, no fewer than eight different drivers attended a race last year, something that has only happened twice in F1 in the past 30 years.

Dorna Sports

Dorna Sports In addition to MotoGP, it also owns the lesser-known championships Moto2, Moto3, MotoE, Superbike and the new Women’s Motorcycling World Championship. In Moto2 we also find a talented Belgian with the young Barry Baltus.

  • Liberty Media will acquire 86 percent of Dorna Sports, while current management will retain 14 percent. Carmelo Ezpeleta, who has been CEO since 1994, will remain on board and the headquarters will also remain in Madrid.
  • Liberty Media will pay 3.5 billion dollars (3.25 billion euros) for that 86 percent share. This brings the estimated value of Dorna Sports to 4.2 billion dollars (3.9 billion euros). The sale should be officially completed by the end of this year.

Future?

It is known that the arrival of Liberty Media for Formula 1 has been a golden move. By introducing a wage ceiling, teams have become financially healthier and less wealthy owners can also dream of (limited) success. By expanding the season to new markets, revenues have also increased enormously. In addition, the popularity of Formula 1 grew, partly thanks to the Netflix series Drive to Survivehuge, especially in the United States.

Liberty Media will now try to repeat the same success with MotoGP. This sport is very popular in certain markets, such as Spain, Italy, France and Japan, but clearly still has a lot of room for growth.

The article is in Dutch

Tags: Formula owner Liberty Media buys MotoGP billion

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