Bridgepoint exits MotoGP in €4.2bn deal

July 2024 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

July 2024 Issue

Liberty Media Corporation has agreed to acquire Dorna Sports, S.L., the exclusive commercial rights holder to the MotoGP World Championship, from Bridgepoint and Canada Pension Plan Investment Board in a €4.2bn deal.

The acquisition is expected to be completed by the end of 2024 and is subject to the receipt of clearances and approvals by competition and foreign investment law authorities in various jurisdictions.

Liberty Media will acquire 86 percent of MotoGP with MotoGP management retaining approximately 14 percent of its equity in the business. The transaction reflects an enterprise value for MotoGP of €4.2bn and an equity value of €3.5bn with the existing debt balance at MotoGP expected to remain in place after close.

“We’re proud to have partnered with Dorna and its management team for the past 18 years during which time Moto GP has become one of the true global sports brands and enjoys huge success,” said William Jackson, chairman of Bridgepoint Group plc and of Dorna Sports S.L. “The partnership has seen MotoGP grow its fan base across five continents and become the world’s most exciting sport.”

Bridgepoint has been an investor in the business since 2006, buying it from CVC Capital Partners after the latter bought into F1, drawing scrutiny from EU watchdogs. Bridgepoint currently owns close to 40 percent of Dorna, while a slightly smaller stake is held by Canada Pension Plan Investment Board, which invested in the company in 2013. The remaining shares are held by Dorna’s management. Canada Pension Plan’s net proceeds from the transaction are expected to be around $1.4bn, of which approximately 75 percent is in cash and 25 percent in series C Liberty Formula One tracking stock.

“We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” said Greg Maffei, president and chief executive of Liberty Media. “MotoGP is a global league with a loyal, enthusiastic fan base, captivating racing and a highly cash flow generative financial profile. Carmelo and his management team have built a great sporting spectacle that we can expand to a wider global audience. The business has significant upside, and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders.”

“This is the perfect next step in the evolution of MotoGP, and we are excited for what this milestone brings to Dorna, the MotoGP paddock and racing fans,” said Carmelo Ezpeleta, chief executive of Dorna. “We are proud of the global sport we’ve grown, and this transaction is a testament to the value of the sport today and its growth potential. Liberty has an incredible track record in developing sports assets and we could not wish for a better partner to expand MotoGP’s fanbase around the world.”

“Since our first investment in Dorna in 2013, the Company has expanded the scale, scope and fanbase of motorcycle racing globally. Our partnership with the Dorna management team and Bridgepoint over more than a decade has delivered excellent returns for the CPP fund,” said Hafiz Lalani, managing director and global head of direct private equity at CPP Investments. “As a coordinated ownership group, we have supported and focused the growth of the business globally, as well as helped steward it through a challenging period of time during the global pandemic. We are confident the business will now further benefit from the new ownership of Liberty Media.”

Bridgepoint is a private asset growth investor which specialises in private equity, private debt and infrastructure. The firm has over €60bn of assets under management. Liberty Media operates and owns interests across a wide range of media, communications and entertainment businesses, including the exclusive commercial rights for the FIA Formula One World Championship. MotoGP will host 21 motorcycle races across 17 countries for the 2024 season.

Richard Summerfield