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Motorsport Week
Home Single Seater Formula 1

Pressure mounting on F1 owner Liberty Media over MotoGP takeover

by Dan Lawrence
9 months ago
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F1 owner Liberty Media is facing scrutiny over its proposed takeover of MotoGP

F1 owner Liberty Media is facing scrutiny over its proposed takeover of MotoGP

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A Belgian member of the European Parliament has requested an investigation be made into Formula 1 owner Liberty Media and its proposed acquisition of MotoGP.

Liberty announced back in Spring that it is targeting completion of a majority takeover of Dorna Sports by the end of 2024.

Acquiring Dorna will give Liberty ownership of MotoGP, WorldSBK and both series’ associated support classes.

Belgian MEP Pascal Arimont has called upon the European Commission to investigate Liberty Media, with the F1 owner in potential breach of European competition laws.

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Arimont told Belgian newspaper Het Belang van Limburg he wants the investigation “to protect consumers and ensure fair competition.”

F1 owner Liberty Media facing scrutiny from Formula E Chairman

The representative for the Belgian Christian Social Party in the European Parliament isn’t the only one to have scrutinised Liberty Media’s proposed deal.

Formula E Chairman Alejandro Agag wants the European Commission to carefully consider Liberty’s proposed €4.2 billion takeover of MotoGP parent company Dorna.

“From the point of view of competition law, I think there are significant challenges,” Agag told the Financial Times.

“The leverage that this merger will give the resulting entity in terms of negotiating with broadcasters will be significant and I think the European Commission will look very carefully at this deal.

Alejandro Agag has scrutinised Liberty's proposed takeover of MotoGP, while Michael Andretti has had his F1 plans rejected
Alejandro Agag has scrutinised Liberty’s proposed takeover of MotoGP, while Michael Andretti has had his F1 plans rejected

“[There needs to be] proper remedies to guarantee fairness in the market.”

Liberty Global acquired a controlling stake in Formula E earlier this year, and although a separate company from Liberty Media, it says a chairperson in the form of John Malone, with BlackBook Motorsport’s Cian Brittle reporting Malone has “significant” voting power in each company.

Concerns regarding a motorsport monopoly being formed between four and two-wheeled motorsport is nothing new, especially when it comes to F1 and MotoGP.

When CVC Capital Partners purchased F1, it already had MotoGP in its stable and was forced to sell the two-wheeled arm of Grand Prix racing in 2006 by the EU’s competition regulators.

US Congress at loggerheads with Liberty

It’s not just its proposed acquisition of Dorna and MotoGP that has landed Liberty in hot water in 2024.

By proxy via Formula One Management (FOM), Liberty rejected Michael Andretti’s proposed bid to launch his eponymous team in F1.

Despite reaching approval with the FIA, Andretti couldn’t make commercial terms to compete in the pinnacle of motorsport and it was deemed his entry didn’t bring significant value to the sport.

“It is unfair and wrong to attempt to block American companies from joining Formula 1, which could also violate American antitrust laws,” read a letter from members of United States Congress.

“Participation of all Formula 1 teams including any American teams should be based on merit and not just limited to protecting the current line-up of race teams.”

Liberty Media CEO Greg Maffei has since disclosed that the department’s Antitrust Division is investigating the legalities involved in F1’s choice to not accept Andretti’s bid.

READ MORE: Liberty Media selling $825m in F1 shares to fund MotoGP takeover

Tags: F1FormulaELibertyMediaMotoGP
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