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The European Commission has “preliminary concerns” with the deal and has opened an in-depth investigation into the proposal, delaying the sale’s completion by six months.
That’s despite Liberty Media’s ongoing confidence when speaking with analysts and the media since first announcing the planned investment in April.
Liberty Media had hoped the deal would complete by the end of the year, leaving it with an 86 percent stake in Dorna from the start of the 2025 MotoGP season.
The delay is rooted in the fact that Liberty Media also owns Formula 1. The acquisition of Dorna would give the American organisation the world’s two premier motorsport categories.
The European Commission was obliged to assess the proposed sale due to the size of the players involved and the potential impact on the European market, a process which has identified areas of concern.
“Liberty Media today received notice from the European Commission opening a Phase II investigation into its previously announced acquisition of MotoGP,” Liberty Media confirmed in a statement.
“We are confident this transaction will benefit MotoGP’s business, fans, viewers and the broader motorcycle industry.”
That contrasts the issues raised by the European Commission which lists the potential impact on licensing and broadcasting rights among its chief concerns.
That includes the influence Liberty Media chairman and interim CEO John Malone could have over both Formula 1 and MotoGP.
“The transaction raises serious competition concerns in potential narrow national markets for the licensing of broadcasting rights for motorsports content in the European Economic Area (‘EEA’), where Formula 1vis the clear market leader in all European countries and MotoGP is most often its only competitor,” the European Commission noted in its statement
“The transaction may remove important competitive constraints between the parties on some potential wider national markets for the licensing of broadcasting rights for all sports content or possible segments of such markets. In particular, this is because it appears that Formula 1 and MotoGP compete closely.”
A decision will now be made no later than May 14 next year, before which the European Commission will look at a number of factors.
At that point, the deal could be unconditionally cleared, approved subject to remedies, or prohibited “if no adequate remedies to the competition concerns have been proposed by the merging parties.”
This is not the first time the European Commission has become involved with both Formula 1 and MotoGP.
In 2006, CVC Capital owned the commercial rights to MotoGP as it acquired F1, at which point it was ruled that it must divest its interest in the two-wheeled world championship.
“There is a very large and growing market for audiovisual entertainment well beyond sports, and this transaction will enhance MotoGP’s ability to compete in this highly competitive market,” Liberty Media asserted.
“We will continue to work with the European Commission as they progress their review and have agreed with the sellers to an extension of the longstop date to June 30, 2025 in order to accommodate the more in-depth investigation.
“We believe that the European Commission will conclude that the transaction should be approved.”
MotoGP boss, Carmelo Ezpeleta, who will retain a 14 percent stake in Dorna post sale, is also confident the transaction will ultimately be approved.
“We expect this acquisition to gain the requisite EU approval and are excited by the potential opportunity to work with Liberty Media,” he insisted.
“In the meantime, we remain committed to our strategy to take the sport to new heights and continue our impressive rate of growth, further expanding our global fanbase of over 500 million. 2024 saw season attendance of more than 3 million fans for the first time ever, and six tracks set new all-time records for their events.
“Our French GP broke the all-time attendance record. Looking ahead, we don’t just want more of the same, we want even more – and we are proud that our strategy is already beginning to deliver it.
“We hope fans are just excited as we are about the future and the incredible new season that is just around the corner.”
