Reports have surfaced in the Spanish media this week suggesting that Liberty Media, the owner of Formula 1, is seeking to expand its presence in the motorsport industry by attempting to acquire a majority stake in Dorna, the promoter of MotoGP. According to Expansion, a Spanish business and economics publication, Liberty is engaged in confidential discussions regarding a potential takeover of Dorna.
This news may not come as a surprise, as there has been ongoing speculation that Dorna has been quietly put up for sale by its current owner, Bridgepoint Capital. Furthermore, Dorna CEO Carmelo Ezpeleta has not been shy about discussing the possibility of a sale in the near future. In an interview with Italian newspaper Repubblica in December, Ezpeleta confirmed the rumors and expressed his curiosity about the source of these rumors. He also mentioned receiving inquiries from credit institutions, who act as intermediaries rather than potential buyers.
There are additional indications that Bridgepoint has been preparing for a sale by restructuring its finances in recent years. The company has accumulated significant debt through loans in order to distribute dividends to its shareholders, a common business strategy prior to a potential sale. Industry experts also believe that MotoGP is undervalued compared to the highly profitable Formula 1, which Liberty has transformed since its acquisition, including an aggressive expansion plan and the success of the Netflix documentary Drive to Survive.
Currently, Bridgepoint owns 39% of Dorna, with the Canadian public pension fund CPPIB holding an additional 31% (acquired from Bridgepoint in 2012), and the Ezpeleta family owning a majority 20% stake through a group of current and former employees. However, considering the circumstances under which Bridgepoint acquired Dorna in 2006, forced by the EU’s competition regulator, it seems unlikely that the rumors of Liberty’s involvement hold much substance at this time.
Bridgepoint gained control of Dorna when the previous owner, CVC Capital Investment, was compelled to sell it by the EU’s competition commissioner as part of the approval process for CVC’s acquisition of a 71% stake in Formula 1, which was later sold to Liberty in 2016. The competition commissioner at the time, Neelie Kroes, expressed concerns about the concentration of ownership of the two most popular motorsport events in the EU and the potential negative impact on TV rights prices and consumer choice.
Despite the growing alignment between MotoGP and Formula 1 in terms of partnerships, broadcasters, and host circuits, it is unlikely that the situation has changed significantly since then. However, it is worth noting that discussions about a potential sale could serve as a form of subtle advertising for MotoGP’s current owners, should a sale be on the horizon in the coming months.
Ironically, although Liberty may not be permitted to take over Dorna, it is possible that familiar faces, such as former owner CVC, could be involved in a potential sale. CVC had expressed a desire to maintain a presence in motorsport around the time of its sale of Formula 1. While this did not initially involve a return to MotoGP, it is likely that CVC would explore the possibilities of acquiring Dorna more seriously if it were formally put on the market.