Formula 1 owner Liberty Media’s CEO thrilled by acquisition of MotoGP

COLORADO – MotoGP’s potential for growth in the United States and other markets is “very exciting”, said Liberty Media president and chief executive Greg Maffei, following a takeover of MotoGP’s parent company Dorna on April 1.

The deal by Liberty Media, which took over control of Formula One in 2017, valued the world's leading motorcycle racing championship at €4.2 billion (S$6.1 billion).

In an interview with CNBC television, Maffei noted that F1 had only one grand prix in the United States before Liberty came in and now has three.

MotoGP currently has one US race on a 21-round calendar that includes Asia and the Middle East, but with a European heartland dominated by Spain and Italy.

“I’m not suggesting we’re going to get to three but the opportunity to grow in the US and in other markets and other geographies... is very exciting,” said Maffei.

The deal will see Liberty Media acquiring approximately 86 per cent of Dorna, with Dorna management retaining around 14 per cent of its equity. It is expected to be completed by the end of 2024.

Dorna will stay an independently run company attributed to Liberty Media's F1 Group tracking stock and continue to be based in Madrid, with long-serving Dorna CEO Carmelo Ezpeleta remaining in his position.

“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,” Ezpeleta said in a Liberty Media statement.

Dorna Sports, which was roughly 40 per cent owned by British private investment company Bridgepoint Group, also promotes the World Superbike Championship and all-electric MotoE as well as Moto2 and Moto3 junior categories.

CVC Capital Partners, which sold Formula One to Liberty in 2017, had to dispose of Dorna in 2006 as a condition imposed by the European Commission in the purchase of F1.

Maffei and Liberty's chief legal officer Renee Wilm told a conference call with analysts, however, that the situation was different now and they were confident on the regulatory side.

“We believe there is a broad market for sports and entertainment properties, of which both F1 and MotoGP are only a small subset, and that the market has continued to change from the time when this was previously reviewed in a major way,” said Maffei.

“These are both separate properties. The things that we are bringing to the table here are not in any way leveraging the two.

“We believe the regulatory process will move quickly and smoothly, but will take the time they need and this deal will get done.”

From just six rounds of racing during its first season in 1949, MotoGP has grown into a 21-race campaign, covering four continents.

Spanish rider Jorge Martin is leading this year’s championship on 60 points after two races, followed by Brad Binder of South Africa on 42 points. REUTERS