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