Announced in April, Liberty Media has agreed terms to acquire the commercial rights to the motorcycling world championship.
The deal is worth AUD $6.9 billion and would give the American organisation control of F1, MotoGP, along with an interest in IndyCar through a stake in Meyer Shank Racing.
Elsewhere in the Liberty empire, sister organisation Liberty Global holds a significant share in Formula E.
The MotoGP deal hinged on regulator approval across a number of key markets, including a submission to the European Commission.
Submitted on Thursday, approval from the EC stands as the final box unchecked for the transaction to proceed.
“We did file this morning with the EC for regulatory approval,” confirmed Liberty’s outgoing CEO, Greg Maffei at an investor event.
“We expect to be on track to receive that by year-end.”
Under the EU’s procedures, the Commission has 25 working days to analyse the deal once the submission is made.
That gives the organisation until December 19 to make a decision.
Should there be concerns, the matter would then progress to a second phase of investigations.
“Phase II is an in-depth analysis of the merger’s effects on competition and requires more time,” the EU Competition Policy website details.
Should the transaction reach Phase II, a decision would be postponed to next May or beyond.
Concerns surrounding Liberty Media’s interest in MotoGP have been raised by a number of stakeholders.
That includes Alejandro Agag, founder of Liberty Global-owned Formula E.
“From the point of view of competition law, I think there are significant challenges,” Agag told the Financial Times in September.
“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.”
Two members of the European Parliament, Pascal Arimont from Belgium and Christine Anderson from Germany have also raised concerns.
“Commercial agreements make it also very difficult for new teams to join the F1 series, possibly restricting competition in an unlawful way – a point the US Department of Justice is investigating,” Arimont noted.
Anderson went further, suggesting Formula 1 was operating with “cartel-like structures.”
Previously, CVC Capital was forced to divest its interest in MotoGP when it acquired the commercial rights to Formula 1 in 2006.
Liberty Media is hoping that stance has changed in the near two decades since.
The final round of the 2024 MotoGP season takes place in Barcelona this weekend, having moved from the flood-ravaged Valencia.
A new image for the championship is set to be revealed as part of the event.
