Liberty Media Corporation signs deal to acquire Dorna Sports for €4.2 billion

Liberty Media Corporation has announced its agreement to purchase Dorna Sports, the exclusive commercial rights holder of the MotoGP World Championship. This acquisition, valued at an enterprise level of €4.2 billion, will see MotoGP become a part of Liberty Media’s Formula One Group portfolio.

“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.”

MotoGP, renowned for its high-octane races reaching speeds over 360 km/h, has expanded from its European roots in 1949 to a global phenomenon, with the 2024 season set to host 21 races across 17 countries. The sport boasts a robust financial structure, characterized by diverse revenue sources and high EBITDA margins, leading to substantial free cash flow.

Carmelo Ezpeleta, who has been at the helm of Dorna since 1994, will continue to lead the Madrid-based organization. Liberty Media will secure 86% ownership, while MotoGP management will retain a 14% stake.

“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,” said 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 fanbase around the world.”

The transaction includes a mix of 65% cash, 21% in Series C Liberty Formula One common stock, and the remaining equity held by MotoGP management. The deal, expected to close by the end of 2024, hinges on regulatory approvals.

Advising Liberty Media on this strategic expansion is Goldman Sachs & Co. LLC, with committed debt financing, and legal counsel from O’Melveny & Myers LLP. Dorna’s financial guidance is provided by Moelis & Company LLC, with Latham & Watkins LLP offering legal advice. The acquisition marks a significant shift in the motorsports landscape, as Liberty Media drives forward with its vision for the future of racing.