MarketsApr 2, 2024
Liberty races ahead with $4.5B MotoGP purchase
Sports M&A
A.M. Steinbach
After turning Formula 1 into a global phenomenon, Liberty Media is acquiring MotoGP, aiming to elevate another racing sport into a worldwide champ. Liberty is investing $4.5B in this Euro-centric sport, which features motorcyclists taking tight turns around a track at over 200MPH.
- MotoGP’s revenue has grown in each of the past three years, reaching $523M last year — and Liberty likes the sport’s low capital expenses of ~$5.4M.
- It also boasts a big fanbase, attracting an average of 143K spectators to its races last year — with attendance up 21.5% from 2022.
Drive to thrive: While MotoGP is much smaller than Formula One, which generated $3.2B in revenue last year (a 25% year-over-year increase), Liberty’s done a masterful job accelerating growth. They’ve secured lucrative media rights deals with major networks like ESPN and Fox Sports. But despite Netflix’s docuseries Drive to Survive minting new F1 fans, viewership saw a modest decline last year — can MotoGP pick up the slack?
