The takeover of MotoGP by Liberty Media, owner of Formula 1, enters a critical phase as the European Commission prepares to examine a deal valued at 3.5 billion euros. While the acquisition promises to unite motorsport's two most prestigious championships under a single banner, it also raises important competition and regulatory issues. This Thursday, December 19, is expected to mark a key milestone.
Liberty Media in MotoGP: a large-scale operation, which lasts...
Announced on 1ᵉʳ April 2024, Liberty Media's purchase of an 86% stake in Dorna Sports, holder of the commercial rights to MotoGP, immediately aroused the interest of observers. The deal values Dorna at 4.2 billion euros, taking into account the remaining 14% stake that will remain in the hands of its current management. However, despite the optimism expressed in the spring, the regulatory procedures are proving more complex than expected.
Greg Maffei, CEO of Liberty Media, last April:
We believe that the sports and entertainment market is large enough to accommodate both Formula 1 and MotoGP as separate divisions.
This assurance could falter in the face of scrutiny from the European authorities...
Teresa Ribera: a decisive role in the evaluation of the Liberty Media dossier
The arrival of Teresa Ribera as head of the European Competition Commission on 1ᵉʳ December 2024 adds a new dimension to this dossier. A former Spanish Deputy Prime Minister, Ribera is well aware of the cultural and economic importance of MotoGP, particularly in her native country, where the sport enjoys immense popularity.
Her appointment coincides with a heightened awareness of the risk of concentration in the fields of television broadcasting and streaming platforms. Indeed, the simultaneous acquisition of the commercial rights to F1 and MotoGP from 2025, by a single entity, could limit competition in these markets.
Historical precedents: the case of CVC Capital Partners
This is not the first time such a scenario has arisen. In 2006, CVC Capital Partners was forced by the European Union to sell its stake in MotoGP in order to complete its acquisition of F1. This precedent is now fuelling speculation about the outcome of the Liberty Media affair.
A tense end to the year?
December 19 can be expected to mark a key milestone: Liberty Media must submit new documents to Brussels to address the concerns raised by regulators. However, it seems unlikely that the European Commission will deliver its verdict before the end of the year, thus delaying the effective takeover of Dorna Sports.
At the same time, the American company has already raised substantial funds to finance the operation, notably via the sale of shares in F1 for 825 million euros last summer. This delay could jeopardize Liberty Media's strategy, should the European authorities impose conditions similar to those applied to CVC in 2006.
Far from being a formality, the agreement will largely depend on the approach adopted by the new Commissioner, Teresa Ribera. For Liberty Media, it's a question not only of convincing the regulators, but also of preventing this operation from becoming a new textbook case in the annals of European competition law. Beyond the challenges faced by KTM, it's the future of MotoGP as a whole that remains conditional on the European Union's approval.
Main photo credits: MotoGP
