The Future of MotoGP: Liberty Media

The European Commission, yesterday, gave permission for Liberty Media to acquire Dorna, the current MotoGP promoter "without conditions" under the EU Merger Regulation as the transaction will not raise competition concerns. This move, providing nothing changes with their ownership of Formula One Group, would mean Liberty own both major prototype sporting competitions in Europe.

Liberty Media, or Liberty, currently owns Formula One Group, Sirius XM, and Live Nation Entertainment, putting it at the forefront of sports broadcasting, audio broadcasting, and event promoting. Like with Formula One Group, Liberty will take majority stakes in Dorna (86%) for the sum of $4.2 billion, half the price it paid for Formula One in 2017. The deal came after it was confirmed that the broadcasting of MotoGP by Liberty would not exclude rival broadcasters in Belgium, Ireland, and the Netherlands. But what could all this mean for MotoGP?

Well, it is no secret that in some parts of the world MotoGP is rather an inaccessible sport. In the UK, for example, there are two options - TNT sports and the MotoGP pass. Since 2017, Formula One has become far more accessible to the general public, with a boosting of social media presence, broadcasting directly from the Formula One app in areas where there are no broadcasting contradictions, long-form highlights and replays on YouTube, and so on.

Similarly, Formula One has boomed in the last decade, mostly under Liberty's ownership with viewership increasing, attendance at Grand Prix reaching new records, and the market value almost quadrupling since their acquisition. This boom coincided with the launch of Drive To Survive, something that many MotoGP fans can probably expect to see in the near future, and a global pandemic that forced people to stay inside and consume content. But nevertheless, there is evidence to suggest that without both of these events, Formula One would have boomed. In part, this is due to a change in regulations and an epic title fight in 2021.

MotoGP is also about to go through a huge regulation change, with many expecting the competition to be far closer than the current state of the sport. The "nerfing" of Ducati and a bolster for manufacturers like Yamaha, Honda, Aprilia, and potentially KTM are promising even closer racing. So it's all looking good. Similarly, due to the market value increase of Formula One, many big manufacturers are showing an interest in entering the sport too.

Does all this interest in another motorsport spell the end of Liberty's involvement in Formula One? It has long been suggested that Formula One Management (FOM) is for sale, with interest from the Saudi Arabian sovereign wealth fund rumoured to have placed an offer for $20 billion in 2023. Liberty have denied any conflict of interest between the two sports and practically ruled out any crossover between the two sports. Could the acquisition of MotoGP mean Liberty are setting themselves up for another investment and would they want to sell Formula One while it is at a peak? A sport can only expand so much, and any further expansions would be incremental at best.

What do you think about the acquisition of MotoGP? Is it a good thing for the sport to be promoted on a more global stage? Could Liberty sell Formula One? Let us know in the comments.