EU pushes back MotoGP takeover and worries about F1 links

Already owner of Formula 1, Liberty Media hoped to complete the takeover of Dorna Sports, promoter of MotoGP and the main motorcycle competitions, before the end of the year, but the European Commission decided to postpone the deadline.

After working on the transaction for several months, selling certain F1 shares to raise the funds, Liberty Media requested approval from the Commission on November 14. The institution had to ensure its role in controlling concentrations and as expected, it decided this Thursday to move its investigation from phase 1 to phase 2, namely more in-depth control specifically on the risk linked to competition. , with a decision to be made no later than May 14, 2025.

The Commission fears a direct merger between the sale of television rights to F1 and MotoGP, likely to increase the sums paid by the broadcasters of the two championships, and therefore the prices of subscriptions for customers.

“The transaction raises serious competition concerns, potentially reducing domestic motorsport broadcast rights markets in the European Economic Area, where Formula 1 is the clear market leader and MotoGP often its only competitor.”indicates the commission, which fears an association likely to “reduce significant competitive constraints”while today, F1 and MotoGP are “in close competition” to find a place on television channels and streaming services.

Greg Maffei, CEO of Liberty Media until the end of the year, was nevertheless reassuring on this issue when the acquisition was announced. “We are not going to deal with these [championnats] as a set or try to combine them on the market”assured the American in the spring. “They are separate entities, what we are proposing does not provide leverage for both.”

The Commission will also examine the influence of John Malone, the main shareholder of Liberty Media and Liberty Global, and the effects that such a merger could have on the markets where Liberty is present as a broadcaster, specifically citing the Belgium, Ireland and the Netherlands.

In 2006, CVC Capital Partners was not authorized to retain the rights to MotoGP when it took control of those to F1, but Liberty Media has always shown its confidence on this point, believing that calendar constraints had forced the group to part ways with MotoGP at the time. If the takeover of Dorna Sports were to fail, Liberty Media would have to pay the sum of 126 million euros to the Spanish group, as compensation.