Formula 1 owner Liberty Media are in talks to buy Madrid-based company Dorna Sports in what appears to be a €4bn deal, according to reports.
Autosport understands that the deal could be announced in the lead-up to the third round of the 2024 MotoGP season, where the series travels to the Circuit of the Americas.
Dorna Sports also promotes World Superbikes and the MotoE World Championship.
Autosport were informed that the intention was to make it official before the first race of the 2024 season in Qatar, but due to concerns about the intervention of the European Commission, the body that regulates the competition market froze the move altogether.
The Financial Times suggest that any deal, however, is likely to face regulatory scrutiny. Private equity firm CVC Capital Partners once owned both F1 and MotoGP but was forced to sell the motorcycle series in 2006 as a condition of buying F1 after EU competition regulators raised concerns.
In 2022, Dorna Sports generated a turnover of €474.8 million, an increase of 33% over the previous year, although the year ended with a loss of €7.8m, as a result of the impact of the pandemic. (Source: Autosport)
At the beginning of 2022, the Madrid-based company refinanced €975m of debt, a resource that allowed it to strengthen its liquidity, and also to distribute dividends worth €390m to its shareholders.
With Liberty Media proving their worth as Formula 1 owners by making the pinnacle of four wheeled racing profitable, the business model of MotoGP, WorldSBK and MotoE would be similar. It revolves around broadcast rights, fees from racing circuits, sponsorship, corporate hospitality and merchandising.
There is no doubt that Liberty Media will want to replicate its success from its Formula 1 venture and it will be interesting to see where it can take two-wheeled racing.
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