MotoGP fans should look away now, for...

Liberty Media has announced that it has entered into an agreement to acquire Dorna Sports, S.L. ("Dorna"), the exclusive commercial rights holder to the MotoGP™ World Championship., from Bridgepoint and Canada Pension Plan Investment Board ("CPP Investments"). MotoGP will be attributed to Liberty Media's Formula One Group tracking stock.

"MotoGP is (was? - Ed) the pinnacle of motorcycle racing and features breathtaking races with top speeds above 360 kilometres per hour (223 miles per hour) and lean angles of over 60 degrees," reads the press release. "From its first season in 1949 that staged six rounds across Europe, MotoGP has grown significantly and will host 21 races across 17 countries for the 2024 season.

"The business benefits from an attractive financial profile with diversified and contracted revenue streams, high EBITDA margins and low capital intensity resulting in significant free cash flow. Carmelo Ezpeleta, CEO of Dorna since 1994, will continue to run the business headquartered in Madrid.

"We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP," said Greg Maffei, Liberty Media President and CEO. "MotoGP is a global league with a loyal, enthusiastic fan base, captivating racing and a highly cash flow generative financial profile. Carmelo and his management team have built a great sporting spectacle that we can expand to a wider global audience. The business has significant upside, and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders."

"This is the perfect next step in the evolution of MotoGP, and we are excited for what this milestone brings to Dorna, the MotoGP paddock and racing fans," added Carmelo Ezpeleta, CEO of Dorna. "We are proud of the global sport we've grown, and this transaction is a testament to the value of the sport today and its growth potential. Liberty has an incredible track record in developing sports assets and we could not wish for a better partner to expand MotoGP's fan-base around the world."

Liberty Media will acquire 86% of MotoGP with MotoGP management retaining approximately 14% of their equity in the business. The transaction reflects an enterprise value for MotoGP of €4.2 billion and an equity value of €3.5 billion with the existing debt balance at MotoGP expected to remain in place after close.

The equity consideration to sellers is expected to be comprised of approximately 65% cash, 21% in shares of Series C Liberty Formula One common stock (Nasdaq: FWONK) and 14% of retained MotoGP management equity. The cash consideration will be funded with a mix of cash and debt, subject to market conditions. The FWONK share consideration will be priced on a 20-day volume weighted average price prior to transaction close. Liberty Media retains an option at its sole discretion to deliver additional cash in lieu of FWONK common stock.

The acquisition is expected to be completed by year-end 2024 and is subject to the receipt of clearances and approvals by competition and foreign investment law authorities in various jurisdictions.

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READERS COMMENTS

1. Posted by trackrecords, 04/04/2024 15:33

" @R1Racing71 "race attendance at Silverstone is modest, with only around 40,000 spectators on race day" You amaze me. I thought it was totally the opposite. Historically, it was totally different. I recall trying to go down the M1 passing j24 - Donington's turn-off - on the Moto GP Sunday, and finding 3 lanes at standstill. Also, there's the Donington Park Racing Association Club - members originally campaigned for the circuit to be re-opened - that has a fenced-off enclosure at McLean's Corner. At the bike GP their membership would swell from an already massive biker membership, because the enclosure was the only viewing area not 10 foot deep in spectators. "

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2. Posted by kenji, 04/04/2024 1:09

"@Spindoctor...I agree 100% with your summary although having worked for Americans for 15 years prior to my retirement it's not unusual to hear such comments."

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3. Posted by Spindoctor, 03/04/2024 12:12

"@kenji
You mean they'll take the same approach as they exhibited with F1? This is hardly hands-off & they will alter the racing series to fit their Marketing & Financial expectations & goals.

I find this sort of financial\managerial crapspeak somewhere between risible & nauseating."

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4. Posted by kenji, 03/04/2024 10:55

"@Spindoctor...Liberty don't need to get involved in the actual series. The current management have it well in hand and they currently provide an excellent and enthralling racing program. That makes a lot of sense to me. Personally I hope they stay well away from the racing...it's great and the spectacle served up is truly exciting."

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5. Posted by Spindoctor, 03/04/2024 10:20

"These are Liberty's stated key areas where they anticipate they will increase MotoGP's growth. It's worth noting that none of these mentions motor cycles or racing....

* Leverage Liberty’s Ability to Scale Leading Global Sports Assets
* Expansion Opportunity Especially in Key Growth Markets including US
* Amplify Marketing Support and Storytelling Capabilities
* Broaden MotoGP Reach and Appeal to Drive Competition and Boost Commercial Partnerships
* Expose Sport to Wider Fanbase and Fuel Value of Entire Ecosystem
* Improve Hospitality and Fan Experience"

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6. Posted by @R1Racing71, 02/04/2024 10:47

"I'm cautiously optimistic about Liberty Media's takeover of MotoGP. Some of my more sceptical fellow fans argue that MotoGP is now veering towards becoming a domestic one-make series, and there might be some truth to that assessment. However, considering Liberty's track record of growing Formula 1, there's hope that they can implement strategies for MotoGP's expansion. In the UK, for instance, Formula 1 coverage has shifted to less popular PPV channels, suggesting a potential quick fix by switching MotoGP coverage to platforms like Sky, which could tap into a broader market. Currently, race attendance at Silverstone is modest, with only around 40,000 spectators on race day, and the event struggles to break even financially."

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7. Posted by Spindoctor, 02/04/2024 10:20

"@Motorsport-fan
Sorry., but I can't share your optimism. Dorner has managed to grow MotoGp into a "must watch" series. Attendances at circuits are huge & TV coverage is available with a direct subscription to Dorner.
Most importantly the Rules & on-track action & behaviour seem to promote a genuine Sporting spectacle. There have been periods of individual & team dominance, but even then the racing has been pretty interesting. They have managed to avoid the kinds of intervention for which Liberty is rightly lambasted. No gimmicks like DRS (or PTP) & no fixing of tyre longevity to make things "spicier".

Liberty, as we all know, is motivated largely by money & I'm not sure they won't mess about with a great Sport in order to generate clicks & eyballs."

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8. Posted by Motorsport-fan, 02/04/2024 8:27

"I think this will be positive for Moto GP purely on the marketing / financial front, Liberty cannot unlike F1 put Moto GP on street circuits from a safety point of view and this will also limit new circuits Moto GP can go to, so I think the on track action will not be impacted, unlike follow me leader F1 (if you can see Max that is)."

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9. Posted by TokyoAussie, 02/04/2024 4:19

"Posted on April 1.

But I fear is probably genuine."

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10. Posted by Laz, 02/04/2024 2:48

"well another traditional/historic sport down the drain in the pursuit of money.
Instead of leathers the riders will wear tutus to appeal to a broader base!!!!"

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11. Posted by Dirt, 01/04/2024 22:25

"@Superbird70: Keanu Reeves is known to attend at a track day here and there, though calling that racing is a bit of a stretch. Off hand I can't think of any others, but there are certain to be more."

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12. Posted by Superbird70, 01/04/2024 20:01

"Do any celebrities race motorcycles, yet?"

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13. Posted by Tyrbiter, 01/04/2024 18:07

"Like the pot of petunias, all I can say is "Oh no, not again!""

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14. Posted by Celtic Tiger, 01/04/2024 18:07

"April fools!... right? ... right?!"

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15. Posted by Spindoctor, 01/04/2024 16:32

"Terrible news, though it's been on the cards for a while now. MotoGp is still pretty much an unpretentious "racing" series & without the flummery of F1. I get an exceent value Video Pass without having to su scribe to the "dark side", this will certainly disappear, as Liberty reckons to get more revenue from franchising to the usual suspects..."

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Liberty Media to buy MotoGP

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