A report from a prominent British newspaper, the Financial Times, indicated that Liberty Media, the owner of Formula 1 rights, is on the verge of acquiring Dorna, the promoter of MotoGP and World Superbike. This follows earlier rumors from last month, suggesting that the American sports giant was interested in expanding its portfolio of motor sports by taking over the two-wheeled series.
According to the Financial Times, Liberty emerged as the winner in a bidding war that involved Qatar Sports Investments and William Morris Endeavor, an American sports agency that also owned the Ultimate Fighting Championship. This is not surprising considering that there have been speculations for some time about Dorna being up for sale by its current owner, Bridgepoint Capital. Dorna CEO Carmelo Ezpeleta has also expressed interest in a potential sale.
There have been indications of financial restructuring within the company in recent years, further suggesting that Bridgepoint was gearing up for a sale. The company took on significant debts in the form of loans to pay dividends to its owners, a common business tactic before a potential sale.
Currently, Bridgepoint owns 39% of Dorna, while the Canadian public pension fund CPPIB owns 31% (acquired from Bridgepoint in 2012) and the Ezpeleta family owns the majority of 20%, which is held by a group of current and former employees.
However, the Financial Times report also highlights a significant hurdle to the proposed sale – obtaining approval from the EU’s commissioner for monopolies, a position with the authority to block any potential acquisition. Bridgepoint acquired Dorna in 2006 after being forced by the EU to sell it following the acquisition of Formula 1. Regulators may argue that the situation has not substantially changed since then.
It is expected that competition regulators will closely examine the agreement. The EU Commission is likely to conduct months of analysis before deciding whether to approve or deny the prospective sale to Liberty. Given Formula 1’s dominant position in the global motorsport market, thanks to the success of the Netflix documentary Drive to Survive, it is highly unlikely that a judgment will not be issued before any acquisition can proceed.
Liberty and Dorna likely sought extensive legal advice before entering into advanced negotiations, as monopoly commission decisions often surprise by ruling against large companies.
The prospect of Liberty, owner of Formula 1, taking over MotoGP is likely to face resistance and skepticism from a portion of the dedicated MotoGP fan base. While it is natural for fans to be cautious about the owner of F1 managing their beloved series in a similar way, it is hard to argue that Liberty’s ownership of Formula 1 has been entirely negative.
Some may argue that the product on the Formula 1 tracks has not been impressive in recent years. However, it is evident that Liberty has brought a more modern approach to a sport that desperately needed it under its previous ownership. Formula 1 has seen an increase in popularity and has been able to reject new team entries, indicating strong interest from the promoter.
Under Liberty’s management, Formula 1 successfully navigated the challenges imposed by COVID-19 and grew in popularity. All the teams that were present when Liberty took over are still on the track in some form, and most of them have seen their valuations increase.
At the very least, Liberty Media seems to be a capable potential owner.
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The world of sports is about to witness a historic event. Next month, the Brazilian football team will face the German national team in a friendly match. This showdown is eagerly anticipated by football fans around the world.
The rivalry between Brazil and Germany in football is well known. In 2014, the two teams faced each other in the World Cup and Germany emerged victorious. Now, the Brazilians have the chance to redeem themselves and show that they are a force to be reckoned with.
The Brazilian players are intensively preparing for the game. The national team coach, Tite, is working hard to assemble the best possible team. He has a number of talented players at his disposal, including Neymar, Philippe Coutinho, and Roberto Firmino.
On the other side, Germany also has a strong team. Under the guidance of coach Joachim Low, the Germans are ready to face the challenge. Players like Manuel Neuer, Joshua Kimmich, and Thomas Muller are key pieces in the team.
The match promises to be exciting and full of twists and turns. Football fans will certainly be eager to see the performance of their favorite teams. Who will emerge victorious? Only time will tell.
Don’t miss this incredible match between Brazil and Germany. Stay tuned for more information and complete coverage of the game. It will be an epic battle that will stay in the memory of all football lovers.
