F1 and MotoGP sisters?
In the last few hours the news of the possible purchase by the Americans of Liberty Media – already owners of Formula 1 since the end of 2016 – of the entire MotoGP business by the British Bridgepoint and the Canadian pension fund, which hold the majority of Dorna.
The two-wheel series is tempting for the John C. Malone giant, which sees a large margin of increase in the current revenues of the category – set at 483 million euros in 2023 (against the 3.2 billion dollars of Formula 1) -, aiming for expansion towards the United States.
In fact, the words of two weeks ago were not accidental CNN by Dan Rossomondo, commercial director of MotoGP who spoke of “sport tailor-made for the American public“defining it as “a sleeping giant“, ready to have exponential growth. And the first steps towards the States had already been taken, with the Trackhouse Racing team making its debut in 2024 and the new television agreement for the USA with TNT Sports, owned by Warner Bros Discovery.
The precedent from 2006
Eighteen years ago it was CVC Capital Partners to try to become an owner both MotoGP (already his), than Formula 1. The British company in fact began the operation to purchase F1 from Bernie Ecclestone's Bambino Holding and the German bank Bayerische Landesbank – which then held the majority of the share capital.
It was feared that a monopoly condition could arise. Thus came theok conditioned of the European Union, after weeks of study of the case by the Antitrust.
The EU Antitrust ruling
L'The European Union gave the green light to the acquisition of Formula 1, on the condition that CVC Capital Partners sold MotoGP.
The possible violation of competition laws was assessed, as well as the excessive influence on the market that a hub composed of the two most followed categories of motorsport could have.
Neelie Kroes, European Commissioner for Competition in 2006 explained: “When the two most popular motorsport events in the EU, Formula 1 and Moto GP, end up in the hands of a single owner, there is a risk of price increases for the television rights to these events and a reduction in consumer choice”.
In particular, it was believed that the control of the rights for F1 and MotoGP in key markets for the two categories, such as Italy and Spain, could lead to a decrease in competition. But not only that, because there was a well-founded fear that a single package could be created, F1+MotoGP, which would have forced nations with less interest in two wheels to purchase the rights in order to have Formula 1.
And so CVC sold its stake in Dorna to Bridgepoint for 550 million euros.
Will Antitrust be a stumbling block again?
Basically, the European Union will be called upon to verify whether the market and competition situation has changed or not compared to 2006.
Certainly both Liberty Media and Bridgepoint will have had adequate legal assistance available to understand whether or not to continue with the definition of the agreement. But on the other hand it is also true that the risk of creating a monopoly seems real.
2011: the OK for MotoGP and Superbike at Bridgepoint
However, a ruling from thirteen years ago could be of help to Liberty Media. When in 2011 Bridgepoint purchased Superbike from the Swiss Infront, thus making it sister to MotoGP, the agreement was subordinated took from the European Antitrust.
Which arrived, motivating the ruling with the competition that has always occurred between the two series, which, together with that deriving from some national categories such as the CEV, the CIV and the BSB, would have provided sufficient protection against the potential monopolistic actions of Bridgepoint. Said with the words of pronunciation: “The Commission concluded that the transaction will not raise competition concerns due to limited overlap between the parties' activities and that sufficient alternative sources of supply will continue to be available to customers of the new entity in all affected markets.”
The Commission concluded: “We considered that the proposed operation would not give the merged entity the ability to engage in tying and/or bundling of teams and producers, circuit owners and local promoters, advertisers and broadcasters due to the dynamics existing in each of the affected markets“.
Precisely this last point could be excellent for Liberty Media, perhaps guaranteeing sales of separate rights between MotoGP and F1 – photographing the current situation – and keeping the two categories clearly distinct (which does not seem so unrealistic), as happened between Superbike and MotoGP,
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