Liberty Media Corporation has announced that it has entered into an agreement to acquire Dorna Sports, the exclusive commercial rights holder to the MotoGP World Championship, today.
An official statement from Liberty Media states that by acquiring MotoGP, it will benefit from an attractive financial profile, with diversified and contracted revenue streams, high EBITDA margins, and low capital intensity resulting in significant free cash flow.
Dorna Sports became the sole commercial and television rights holder of the FIM MotoGP World Championship in 1991. Carmelo Ezpeleta, CEO of Dorna since 1994, will continue to run the business.
Liberty Media will acquire 86 per cent of MotoGP with MotoGP management retaining approximately 14 per cent of their equity in the business.
The transaction reflects an enterprise value for MotoGP of €4.2 billion (over INR 37,000 crore). The acquisition is expected to be completed by the end of the year.
“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.
“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.
MotoGP is considered the pinnacle of motorcycle racing and in 2024, the championship will host 21 races across 17 countries.
