Formula E raise concern over Liberty Media MotoGP takeover

Formula E chairman Alejandro Agag has raised a concern over Liberty Media’s takeover of MotoGP, which is set to be completed by the end of this year. 

It was announced in April that the F1 owner would buy the pinnacle of two-wheeled racing for $4.7 billion, with Agag concerned that it will give Liberty Media “very significant power”. 

Agag’s concern surrounds the power the US-based company will have when it comes to negotiating new media rights deals with broadcasters. 

Whilst separate companies, Liberty Media and FE controlling stakeholder Liberty Global are both chaired by John Malone, who has noticeable voting rights in both organisations.

Interestingly, the company Liberty Media bought F1 from, CVC, was forced to sell MotoGP in 2006 by the European Commission. 

There were concerns that the same company controlling both F1 and MotoGP, would result in reduced competition in television rights in the European Union.

Agag, has similar concerns now regarding Liberty Media owning both championships, and has called for the European Commission to look into its purchase of MotoGP. 

“From the point of view of competition law, I think there are significant challenges,” Agag told the Financial Times. 

“The leverage that this merger will give the resulting entity in terms of negotiating with broadcasters will be significant and I think the European Commission will look very carefully at this deal.”

He later added that there needs to be “proper remedies to guarantee fairness in the market”, although did not call for the purchase to be blocked by the European Commission.