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The world of racing is gearing up for what could be among the most notable deals in recent times.\u00a0<\/p>\n
Formula One owner Liberty Media is in talks to buy Dorna Sports, the company that owns the motorbike racing franchise MotoGP in a deal worth over \u20ac4 billion ($4.32 billion), the Financial Times<\/em><\/a> reports.\u00a0<\/p>\n The potential purchase, which is still in the works, could mean two of the flagship racing championships will be run by the media company chaired by billionaire John Malone.<\/p>\n \u201cEssentially what they [Liberty] do is they lock down the two premier motorsports in the world\u2014 two wheel and four wheel\u2014within their portfolio, which will bring some very interesting synergies,\u201d Yanni Andreopoulos, a sports industry expert who served as a commercial director at Formula E, told Fortune <\/em>on Thursday.<\/p>\n A number of parties threw their hat in the mix to buy Dorna\u2014from sports and entertainment group TKO and Paris Saint-Germain owner Qatar Sports Investments. The Madrid-based Dorna is involved in well-known sporting championships including MotoGP and MotoE, and is responsible for about 250 races spanning 20 countries.\u00a0\u00a0<\/p>\n Liberty bought a multi-billion-dollar controlling stake in F1 from private equity firm CVC Capital Partners in 2016<\/a> at a time when it was eyeing bringing the European dominated sport to the U.S. And it\u2019s worked\u2014the F1 franchise has seen its popularity soar in recent years<\/a>, thanks to Liberty\u2019s efforts in promoting the sport, including through the Netflix reality show Drive to Survive.<\/em> The proof is in the pudding as F1\u2019s operating profits were up 64% in 2023 to hit $392 million.<\/p>\n MotoGP, for its part, has also seen its fanbase expand<\/a> globally\u2014especially across the Americas.\u00a0<\/p>\n It\u2019s unclear if Liberty will acquire a majority or minority stake in Dorna, if the acquisition pulls through.<\/p>\n The tentative deal, while promising, would most likely attract scrutiny from competition watchdogs.\u00a0<\/p>\n It wouldn\u2019t be the first time European watchdogs stepped in to break up what looked like a sporting hegemony. Back in 2006<\/a>, before CVC bought F1, it owned Dorna and therefore, the MotoGP series. However, the European Commission gave the private equity firm a go-ahead to buy F1 only if it sold Dorna. This time could be no different (if not worse, given that EU watchdogs<\/a> have their radar up on most big deals).<\/p>\n \u201cThere is precedent,\u201d Andreopoulos said, referring to CVC\u2019s case. \u201cI think, absolutely, the watchdogs are going to want to take a look at it [the deal].\u201d<\/p>\n Still, the upsides of the deal are clear. By having F1 and MotoGP under one umbrella, Liberty CEO Greg Maffei could appeal to a large group of racing enthusiasts globally. He also has the opportunity to do to MotoGP what he did to F1 by smothering it with glamor and creating a new-found interest in the sport.\u00a0<\/p>\n Andreopoulos said that even though MotoGP trails behind in terms of its popularity and reach to audiences now, a deal with Liberty\u2019s could be a gamechanger.\u00a0\u00a0\u00a0\u00a0<\/p>\n \u201cThey [Liberty] have proven with Formula One and with other investments that they can come in, they can structure the teams and the series in a way that captures the imagination,\u201d Andreopoulos said.\u00a0<\/p>\n Dorna and F1 didn\u2019t immediately return Fortune<\/em>\u2019s request for comment.<\/p>\n<\/div>\nThe massive growth potential amid bumps<\/strong><\/h2>\n
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