Our take on Liberty Media’s Takeover of Moto GP and DAZN’s launch of the Infinity League, a new sports format
April was packed with significant developments across the industry, and we were thrilled to be part of the action. This month, we became an industry partner of the 2024 Euroleague Basketball Fan XP. We cover other noteworthy industry moves in the latest edition of our Newsletter.
Liberty Media announces acquisition of MotoGP
Acquisition of world’s leading motorcycle racing championship expands Liberty Media’s portfolio of high-quality global sports assets.
🔎 Our Take:
In a piece of news that made waves amongst plenty of investors and stakeholders, Liberty Media took control of Moto GP (86% of shares) in a deal worth $4.53 billion. Naturally, speculations have unfolded, and parallels have been drawn to the impact of Liberty on Formula 1.
Recognising the potential for growth and expansion, there is hope that Liberty can leverage its successful playbook to elevate MotoGP to new heights. This acquisition not only expands Liberty's reach into motorcycle racing but also solidifies its position as a dominant force in both two-wheel and four-wheel performance motorsports globally.
With control over MotoGP and Formula One, Liberty gains unprecedented access to major sponsors and manufacturers, opening doors to new sponsorship verticals and global partnership opportunities with these two distinct and different IPs. For MotoGP, this move would be seriously welcome, considering how the sport has struggled to expand its fan base and achieve sustained growth in its value proposition over the years.
The sport certainly stands to benefit from additional coverage in the US, opening doors to new territories and new fan bases. This, in turn, could grow the media rights valuation of the competition, thereby enhancing its commercial potential. One crucial aspect that needs to be considered is the opportunity for motorbike manufacturers globally. Liberty becomes the one-stop solution for any manufacturer willing to grow sales in the 2-wheeler or 4-wheeler market.
Despite potential challenges, such as cultural shifts within the sport's unique fan base, competition from other two-wheel racing series, and, more importantly, the regulatory scrutiny this deal faces under EU competition law (CVC was forced to sell MotoGP in 2006 as a condition of buying F1); Liberty's track record with Formula One suggests a promising future for MotoGP in the mid to long-term, specifically in terms of media rights, sponsorship, and global engagement.
DAZN launches Infinity League to showcase new broadcast technologies and other innovations
First edition of mixed team indoor soccer event to feature Bayern Munich and Borussia Dortmund.
🔎 Our Take:
By incorporating elements of tradition, innovation, and celebrity culture, the Infinity League aims to capture a broader audience beyond traditional football fans. The inclusion of mixed teams comprising legends, young players, and content creators reflects a strategic move to appeal to diverse demographic segments, including Gen Z and mainstream audiences.
DAZN's initiative to stream the event for free in select regions while securing partnerships with music labels like Warner Music and German sports publisher Kicker demonstrates a multi-faceted approach to revenue generation. Through sponsorships, partnerships, and potentially enhanced subscription rates post-event, DAZN can capitalise on various revenue streams beyond traditional broadcasting rights.
On the broadcasting note, DAZN's strategy to broadcast the event in over 200 territories highlights the platform's ambition to expand its global footprint and attract a diverse international audience. Moreover, by partnering with local entities like Delay Sports Berlin and enlisting German sports publisher Kicker, DAZN demonstrates a commitment to catering to regional preferences while maintaining a global appeal.
What could be the potential future implications for traditional leagues? The emergence of new sports formats such as the Infinity League raises the question of how traditional leagues can adapt their entertainment offering. Adaptation to newer and evolving trends has become paramount in today's times to engage younger demographics of fans and to stay relevant.
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