This morning, Liberty Media announced the agreement to purchase MotoGP. However, nothing is finalized yet and, at the end, the deal may not even materialize. We have explained everything in this article.
In 2006, CVC Capital Partners owned MotoGP and bought Formula 1. It would bring together the premier categories of motorcycle racing and motorsport under its control, but European competition authorities blocked the deal. There is no guarantee that, 18 years later, the same will happen: Liberty Media already owns F1.
The statement this morning made it clear: ‘Completion of the acquisition is expected by the end of 2024 and is subject to obtaining approvals and authorizations from competition and investment authorities in various jurisdictions‘.
Once again, the scenario of having MotoGP and F1 under the same owner may be blocked. Without these authorizations, the purchase of MotoGP by Liberty Media could simply fall through. Losing interest in the new investment would be one way to resolve the deadlock, but not the only one.
It could happen as it did with CVC Capital Partners and Liberty Media letting go of the championship it already owns – F1. They have been controlling the championship for seven years now, during which they have already profited significantly from their investment, and may decide that it is time to pass the torch.
And the money from the Arab countries could very well seduce the American group. Last year, there was speculation about a galactic offer of 20 billion euros from the Public Investment Fund of Saudi Arabia to acquire F1.
At the time, the proposal was rejected and Liberty Media’s CEO, Greg Maffei, made it clear that F1 was not for sale. However, this could change if there is an impediment to exploring a new business like MotoGP.
Naturally, there may be the necessary approval for Liberty Media to own F1 and MotoGP simultaneously. CVC Capital Partners is an investment fund, while the American group is a media and entertainment company. This difference in the business area of each entity could change everything when authorities deliberate on the deal.
