Marco Bezzecchi
Liberty Media are hoping to wrap up their deal to take over MotoGP ahead of the 2025 season.
The American company agreed to acquire 86% of Dorna Sports in a deal worth £3.5bn last year. The takeover is subject to approval from the European Commission.
Liberty have seen incredible success with Formula 1 since taking over in 2017. The sport’s global audience has dramatically increased through Sprint weekends and the popular Netflix documentary series Drive To Survive.
Liberty are hoping to replicate that success in the world of motorcycle racing, but the deal is still being considered for approval. If it is to fall through, it could be just what KTM need to stay in business.
Liberty Media’s compensation fee to Dorna could save KTM from their ‘nightmare’
Heading into the 2025 season, KTM are in financial turmoil. The manufacturer is in self-administration under Austrian Law, reporting liabilities of around £2.5bn.
KTM must find financial support from other parties to prevent it from closing its doors. Seven-time F1 world champion Lewis Hamilton is reportedly interested in becoming an investor.
But the Austrian manufacturer could also be saved if Liberty’s takeover of MotoGP collapses. Journalist Mat Oxley says the company will have to pay Dorna ‘£100 million’ in compensation if their deal falls through.
Subsequently, that fee can be used to keep KTM in business. Oxley said via Motor Sport Magazine: “If the European Commission decides that ownership of F1, MotoGP and World Superbike constitutes a monopoly, Liberty Media’s attempted takeover of global motorcycle racing will be over.
“This is what happened when CVC Capital Partners briefly owned F1 and MotoGP in 2006 – CVC had to sell one of its motor sport properties, so it sold MotoGP.
“If Liberty’s purchase of Dorna does fall through, the terms of the deal state that Liberty will have to pay Dorna £100 million in compensation. Which, the way I look at it, solves the KTM nightmare: Dorna can invest that £100 million in keeping those four RC16s on the grid.
“Or at least invest a chunk of that money into establishing the project as an independent venture outside KTM, perhaps alongside Red Bull and another brand attracted by Lewis Hamilton’s rumoured interest.”
Lewis Hamilton is in advanced talks to invest in KTM
F1 and Ferrari star Hamilton has been interested in delving into the world of MotoGP for some time and his interest in KTM could not come at a more desperate time with their current situation.
Hamilton’s move to Ferrari will not be an issue as his deal with Monster Energy – the rivals of KTM’s main sponsor Red Bull – is set to expire after his departure from Mercedes.
Senior figures at KTM say they are under ‘no immediate threat’ of going out of business. However, there is some concern surrounding the situation heading into 2025.
As the season approaches, KTM will be desperate for their financial woes to be solved. Whether they can be saved by Hamilton or by Liberty’s failed takeover is anyone’s guess.
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