The parties involved
Liberty Media, a US media company, is significantly expanding its involvement in motorsport with this purchase. The company, which has already owned the rights to Formula 1 since 2017, is thus underlining its ambition to play an even more dominant role in global racing.
Dorna Sports has held the commercial rights to MotoGP since 1992 and has turned the series into a worldwide phenomenon. Dorna is also responsible for the commercialization of other motorcycle racing series, including Moto2, Moto3 and MotoE.
Carmelo Ezpeleta, Dorna’s CEO, will retain his position after the takeover, bringing continuity and experience to the new era. The remaining 14 percent of the shares will remain with the current MotoGP management team, indicating that the existing management team will continue to have a significant influence on the series.
Possible complications
Although the takeover looks promising on paper, there are a few hurdles that still need to be overcome.
Competition law concerns: The biggest potential hurdle could come from the competition law side. The approval of the competition authorities is crucial and it is not yet clear how the European Commission will assess the deal. Fears of Liberty Media’s monopoly position in motorsport could lead to close scrutiny. Past experience has shown that similar efforts by CVC Capital Partners, another company that wanted to invest in both Formula 1 and Dorna, were curbed by the European Commission. At the time, they were only allowed to buy Formula 1 shares if they sold shares in MotoGP. At that time, there were far fewer shares involved, so it could well be that the Cartel Office will not grant permission here.
Market concentration: The fact that the main motorsport series could now be under the umbrella of a single company raises questions about diversity and competitiveness. Critics could argue that this leads to too much concentration of power, which could harm the sport in the long term.
Future of MotoGP under Liberty Media: Although this is not a direct complication, many eyes will be on how Liberty Media will run MotoGP. MotoGP fans and teams will be watching closely to see if and how the new leadership can preserve the identity and values of the series.
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