WHY IS F1 OWNER LIBERTY BEING LINKED TO MOTOGP?

Recent reports from the Spanish media have surfaced, suggesting that Liberty Media, the owner of Formula 1, is exploring the possibility of expanding its motorsport portfolio by acquiring a controlling stake in Dorna, the promoter of MotoGP.

According to initial reports in the Spanish business publication Expansion, Liberty is reportedly engaged in undisclosed negotiations regarding a potential acquisition of Dorna.

WHY IS F1 OWNER LIBERTY BEING LINKED TO MOTOGP?

WHY IS F1 OWNER LIBERTY BEING LINKED TO MOTOGP?

While this news may not come as a complete shock, there has been ongoing speculation regarding Dorna’s potential sale, with hints dropped by its current owner, Bridgepoint Capital. Dorna’s CEO, Carmelo Ezpeleta, has hinted at the possibility of a sale in the near future, acknowledging rumors and expressing readiness for such a development.

Further indications of a potential sale include the restructuring of Dorna’s financial operations in recent years, with the company taking on significant debt to facilitate dividend payouts to its current owners—a common strategy preceding a sale.

Industry experts view MotoGP as an undervalued asset, especially when compared to the remarkable financial success Liberty has achieved with Formula 1 since acquiring it. Dorna’s ownership structure currently comprises Bridgepoint holding 39%, Canadian pension fund CPPIB with 31%, and the Ezpeleta family, along with current and former employees, holding the remaining majority share.

However, considering Bridgepoint’s acquisition of Dorna in 2006, mandated by the EU competition regulator, rumors of Liberty’s involvement may currently serve more as strategic maneuvers than concrete developments. The EU’s regulatory concerns over monopolizing motorsport were addressed through commitments to divest Dorna’s ownership.

WHY IS F1 OWNER LIBERTY BEING LINKED TO MOTOGP?

WHY IS F1 OWNER LIBERTY BEING LINKED TO MOTOGP?

Although the landscape of motorsport has evolved over the years, with F1 and MotoGP forming closer ties, regulatory concerns regarding monopolistic practices persist. Yet, the speculation around a potential sale could serve as subtle advertising for MotoGP’s current owners.

While Liberty’s direct involvement in Dorna’s ownership remains uncertain, former owner CVC Capital Investment, which sold F1 to Liberty, may be among the interested parties should Dorna be formally placed on the market. Despite previously showing no interest in MotoGP, CVC’s interest in retaining a foothold in motorsport suggests a potential resurgence of its involvement in the series.

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