Liberty Media are hoping to finalize their deal to take over MotoGP before the 2025 season.
The US company agreed to acquire 86% of Dorna Sports last year for £3.5 billion. The takeover is subject to approval from the European Commission.
In the year Since taking over Liberty in Formula 1 in 2017, he has seen incredible success. The sport’s global audience is fueled by Sprint weekend and the popular Netflix documentary Drive to Survive.
Liberty are hoping to repeat that success in the world of motorcycle racing, but the deal is still pending approval. If it was meant to fail, what could it be? KTM Need to stay in business.
KTM are in financial trouble heading into the 2025 season. The manufacturer is self-regulating under Austrian law and has reported debts of around £2.5bn.
KTM needs to get funding from other parties to keep it from closing its doors. Seven-time F1 world champion Lewis Hamilton is reportedly interested in becoming an investor.
But the Austrian manufacturer can be saved if it is liberalized. MotoGP will fall. Journalist Matt Oxley claims the company will have to pay Dorna ‘£100 million’ in damages if their deal is terminated.
Subsequently, that fee can be used to keep KTM in business. Oxley said through Motor sports magazineIf the European Commission rules that the ownership of F1, MotoGP and World Superbike is a monopoly, the independent media’s attempt to dominate international motorcycle racing will end.
“This happened in 2006 when CVC Capital Partners owned F1 and MotoGP – CVC had to sell one of its motorsport assets, so it sold MotoGP.
“If Liberty’s acquisition of Dorna is terminated, the terms of the agreement state that Liberty must pay Dorna £100 million in compensation. The way I see it, it solves KTM’s nightmare: Dorna could invest £100 million to keep those four RC16s on the grid.
Or at least pour some of that money into establishing the project as an independent entity outside of KTM.
Lewis Hamilton is in advanced talks to invest in KTM.
F1 and Ferrari star Hamilton has been interested in breaking into the world of MotoGP for some time and his interest in KTM couldn’t have come at a more desperate time.
Hamilton’s move to Ferrari will not be a problem Monster Energy’s deal with rivals Red Bull, KTM’s main sponsor, is set to expire following Mercedes’ exit.
Senior experts at KTM say they are ‘not in immediate danger’ Going out of business. However, there are some concerns about the situation heading into 2025.
As the season draws to a close, KTM are desperate to solve their financial woes. Whether they will survive a failed overhaul at Hamilton or Liberty is anyone’s guess.
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