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Liberty Media Moves Forward with MotoGP Takeover
The outgoing president of Liberty Media, Greg Maffei, has confirmed that the company has submitted an application to the European Commission seeking regulatory approval for its anticipated acquisition of MotoGP. This step follows Liberty’s earlier acquisition of Formula 1, establishing a significant foothold in global motorsport.
This strategic move signals Liberty’s ambition to enhance its motorsport portfolio. Earlier this year, the company set out to purchase MotoGP, and it was recently announced that the deal could be finalized by the year’s end. To facilitate this purchase, Liberty disclosed that it sold an $825 million stake in Formula 1, effectively securing the financial backing needed for the MotoGP acquisition.
The application for regulatory clearance is an essential step, especially amidst concerns that the consolidation of ownership over both Formula 1 and MotoGP could lead to monopolistic practices. During an event where he addressed investors, Maffei highlighted that the application had been submitted, expecting a favorable response by the conclusion of the year.
“Just on MotoGP for a moment, we did file this morning with the EC for regulatory approval and we expect to be on track to receive that by year-end,” Maffei stated.
Greg Maffei, CEO, Liberty Media Corporation
Photo by: Zak Mauger / Motorsport Images
In his remarks, Maffei elaborated on why MotoGP holds particular interest for Liberty Media. He expressed enthusiasm for the exciting nature of the sport, noting the extreme skill of riders who navigate their bikes at lean angles exceeding 60 degrees, reaching speeds over 220 miles an hour. He emphasized that MotoGP’s action-packed races, lasting around 45 minutes, are particularly appealing to a younger demographic.
Furthermore, Maffei pointed out the structure of MotoGP race weekends, which include numerous sprint events leading up to the main MotoGP race, making for a rich content experience. He noted that these supporting series—Moto2 and Moto3—not only enhance fan engagement but also generate substantial programming hours for broadcasters.
“This is a great business; it is a rare opportunity to acquire a global league-level asset with centralized commercial rights and diversified revenue streams, along with high profitability,” he explained. The enthusiasm around MotoGP has been evident, with attendance at events rising by 9% this year. Notably, the French Grand Prix achieved record attendance with 297,000 fans, highlighting the growing appeal of the sport.
Maffei also touched upon the highly interconnected nature of MotoGP’s fanbase, stating that a substantial 92% of fans identify as avid supporters, with 82% watching the majority of races. He suggested that Liberty has considerable opportunities to better monetize this audience and attract new fans.
Liberty Media’s success with Formula 1 has largely stemmed from growing interest in the sport in the United States, driven in part by the popularity of the Netflix series “Drive to Survive.” Maffei hinted at similar potential for MotoGP, particularly in the U.S. market, where currently there is only one race and one team. He underscored the significance of expanding MotoGP’s presence in the U.S. with hopes of replicating the success achieved in Formula 1.
“The US has been an enormous part of our story at F1, and we believe there is potential for doing much the same in MotoGP,” he commented. Maffei anticipates increased engagement with lifestyle fans, especially in the U.S., through effective storytelling and marketing, building on the success found in Formula 1.
“Looking at the US a little more, we already have a race in Austin and a U.S. team in Trackhouse Racing, along with interest from manufacturers like Harley Davidson. We expect further interest from U.S. partners, which will form part of our strategy going forward, creating significant opportunities for MotoGP in the United States,” he concluded.
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www.autosport.com