Formula 1 owner Liberty Media is currently engaged in negotiations to acquire Dorna Sports, a Madrid-based company, in a deal estimated to be worth €4bn. This potential acquisition is expected to be officially announced prior to the third round of the 2024 MotoGP season, which will take place at the Circuit of the Americas. Dorna Sports is responsible for the promotion of World Superbikes and the MotoE World Championship in addition to MotoGP. The intention was initially to make the announcement before the start of the 2024 season in Qatar, but concerns regarding the intervention of the European Commission have temporarily halted the process. The Financial Times predicts that any agreement reached will likely undergo regulatory scrutiny. It is worth noting that private equity firm CVC Capital Partners previously owned both Formula 1 and MotoGP, but was compelled to sell the motorcycle series in 2006 as a condition for the acquisition of Formula 1 after EU competition regulators expressed concerns. In 2022, Dorna Sports generated a turnover of €474.8 million, marking a 33% increase compared to the previous year. However, the company incurred a loss of €7.8m due to the impact of the pandemic. At the start of 2022, the Madrid-based company refinanced €975m of debt, which allowed for increased liquidity and the distribution of €390m in dividends to shareholders. Given Liberty Media’s demonstrated success in transforming Formula 1 into a profitable venture, it is expected that a similar business model will be implemented for MotoGP, WorldSBK, and MotoE. This model will revolve around revenue streams such as broadcast rights, circuit fees, sponsorship, corporate hospitality, and merchandise sales. It will be intriguing to observe how Liberty Media will apply its successful approach to four-wheeled racing in the realm of two-wheeled racing.
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