Liberty Media has provided the financial resources for the acquisition of Dorna Sports – “progress” in the approval process with the European Commission
It was announced at the beginning of the year that Liberty Media would acquire MotoGP promoter Dorna Sports. The purchase should be completed by the end of 2024. From the outset, they were confident that they would pass the antitrust reviews.
With the purchase, Liberty Media will own MotoGP rights in addition to Formula 1. This week, Liberty CEO Greg Maffei provided an update on the current situation in an investor call. The financial resources are now in place to complete the Dorna acquisition.
“The third quarter was active at both the group level and in our operating divisions. We refinanced the Formula One debt facilities and secured all the necessary funds for our planned acquisition of MotoGP,” said Maffei.
“We have raised an additional $850 million in Term Loan B and $150 million in Term Loan A to finance the MotoGP transaction. All of this is contingent on the transaction.”
Term Loan B and Term Loan A are capital market financing models. In addition, shares in Formula One Group (FWONK) worth $949 million were issued.
“We issued these shares at a discount of just four percent on the market price. They were placed with long-term holders. These transactions complete the necessary financing for our MotoGP acquisition,” says the Liberty boss.
EU Commission as the last hurdle
The plans were not only welcomed, but there were also critical voices. Because Liberty would thus control not only Formula 1 but also MotoGP with its supporting series and the Superbike World Championship, giving it great market power.
The EU Commission is also asking questions about a monopoly. “We are making progress with the EU Commission, which is our only remaining legal hurdle,” says Maffei in this regard.
However, the American is confident: “We continue to expect a conclusion by the end of the year.” Until then, Liberty Media is not involved in Dorna’s operational business. Currently, everything is still in the hands of the Dorna managers.
In this regard, Maffei praises the efforts to relocate and reorganize the season finale in Valencia in the shortest possible time after Barcelona: “We pay tribute to Carmelo [Ezpeleta] and the management for their quick and well-thought-out response.”
“They will host the last race in solidarity with Valencia. Various initiatives are underway to support Valencia.” For example, all ticket sales proceeds will be donated.
In early September, the contract between Dorna and the Fédération Internationale de Motocyclisme (FIM) to organize the MotoGP World Championship was extended until 2060. Maffei sees a bright future ahead once the Liberty acquisition is complete.
“They have announced their 2025 MotoGP calendar with 22 races in 18 countries. After this season, they will release a new brand identity. We look forward to more exciting races and the involvement of Liberty,” Maffei concludes.