Liberty Media’s purchase of MotoGP delayed as EU launches probe
New EU investigation could take up to 90 days
The European Commission has launched an official 'Phase II' investigation into Liberty Media’s €4.2 billion purchase of MotoGP owner Dorna Sports, delaying the acquisition.
In April, Formula 1 owner Liberty announced that it had agreed to purchase 86% majority ownership of Dorna.
US-based company Liberty has been confident from the off that its purchase would pass EU scrutiny and expected to close the deal by the end of 2024.
However, concerns have been raised over the potential for a monopoly in the motorsport landscape if Liberty’s deal to buy Dorna was approved.
Liberty currently owns F1, Formula 2 and Formula 3, while a sister company owns Formula E. Its acquisition of Dorna would see it take control of MotoGP and its support categories, as well as World Superbikes and its feeder series.
Reports last week emerged that Liberty’s purchase of Dorna could be delayed due to an impending probe by the European Commission.
And on Thursday 19 December - the deadline for MotoGP’s sale to be approved by the EU from its initial filing by Liberty on 14 November - the European Commission announced officially that an “in-depth” investigation is now under way.
The Commission is looking into concerns that Liberty’s ownership of F1 and MotoGP could negatively impact broadcasters through an increase in costs of licensing.
The second-phase investigation could take up to 90 working days to be completed, meaning MotoGP’s sale could be delayed to as late as 14 May 2025.
The full European Commission statement reads: "The Commission's preliminary investigation indicates that the transaction may reduce competition between Liberty Media and Dorna Sports in the licensing of broadcasting rights for motorsports content.
"In particular, the transaction may remove important competitive constraints on Liberty Media and Dorna Sports, which may strengthen their position vis-à-vis broadcasters of motorsports content and could ultimately lead to higher prices.
"More specifically, the Commission found that:
- 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 One is the clear market leader in all European countries and MotoGP is most often its only competitor.
- 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 One and MotoGP compete closely.
"The Commission will now carry out an in-depth investigation into the effects of the proposed transaction to determine whether its initial competition concerns are confirmed.
"During its in-depth investigation, the Commission will also further investigate whether Liberty Media's and Liberty Global's largest shareholder, Mr. John Malone, is able to exert decisive influence over both companies.
"If confirmed, the transaction could also give rise to concerns that Liberty Media may foreclose rival broadcasters in countries in which Liberty Global is active, namely in Belgium, Ireland and the Netherlands.
"The proposed transaction was notified to the Commission on 14 November 2024. The Commission now has 90 working days, until 14 May 2025, to take a decision.
“The opening of an in-depth inquiry does not prejudge the outcome of the investigation."
Liberty Media believes the EU will still approve the sale in a statement issued on Thursday.
"Liberty Media today received notice from the European Commission opening a Phase II investigation into its previously announced acquisition of MotoGP," it read.
"We are confident this transaction will benefit MotoGP’s business, fans, viewers and the broader motorcycle industry. Market participants have widely recognized the benefits of the transaction.
"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.
"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."
