- Dorna Sports
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Dorna Sports, S.L. Type Sociedad Limitada Industry Sports management Headquarters Madrid, Spain Area served Worldwide Products MotoGP Website dorna.com Dorna Sports, S.L. is the commercial rights holder for the motorcycling sport of MotoGP.
Established in 1988 as an international sports management and marketing company, it is headquartered in Madrid, with offices in Barcelona, London and Tokyo. Set up by Banco Banesto as Dorna promoción del deporte, the company was sold to CVC Madrid in 1998 as the operation developed internationally and was renamed Dorna Sports. It is now owned by its management.
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Rights holdings
Since 1992 Dorna has been the exclusive holder of all commercial and television rights relating to the MotoGP World Championship, and from 2001 has also held the commercial and television rights for the Supercross GP World Championship. The company also participates in the management and marketing of other motorsports properties, including: the Spanish Road Racing Championship (CEV), the British Superbike Championship (BSB) and the Trials World Championships (Indoor and Outdoor).
MotoGP
Dorna recognised, with support from manufacturers, that a change was needed in the sport. The costs of developing specialist two-stroke engines, which created non-commercial end products, was not sustainable. Hence, in its efforts to bring about the change from 500 cc racing to MotoGP four-stroke racing, Dorna has managed to take away the FIM’s power in rule-making and turn the keys to the rule-making castle over to the MSMA (the GP Manufacturers Association).
Scheduling with Formula One
A gentlemen’s agreement has allegedly existed for some time between Dorna CEO Carmelo Ezpeleta and Bernie Ecclestone, CEO of Formula One rights holder FOM, to do what is necessary to avoid a direct TV conflict between F1 and MotoGP. At schedule-making time there is consultation between the two sides, but, in general, when F1 makes a change creating a conflict with a MotoGP date, MotoGP responds by changing dates.
Ownership
Set up by Banco Banesto as Dorna promocion del deporte, the company was sold to CVC Madrid in 1998 as the operation developed internationally and was renamed Dorna Sports. The purchase was closely supervised by American Hardy McLain, cost $80 million dollars (approximately), half of which was needed to pay off Dorna debt. McLain, one of the founders of CVC and formerly an executive of Citibank (CVC emerged out of Citibank in 1981), was present at several motorcycle Grand Prix events in 1998 but, confident in the ability of Dorna CEO Carmelo Ezpeleta, has left the running of the company to Spaniard and the almost completely Spanish Dorna executive leadership. [1]
Sale to management
In November 2005 CVC Capital Partners announced it was to acquire the 25% and 48% shares of Bambino and Bayerische Landesbank in Formula1 commercial rights holder SLEC and acquired the shares of JP Morgan Chase in December 2005. This deal was given approval by the European Commission on 21 March 2006 subject to the sale of Dorna Sports. [2]
By divesting Dorna, the Commission concluded that CVC’s Formula One transaction would not cause competition concerns. Competition commissioner Neelie Kroes, said: “When the two most popular motor sport events in the EU, Formula One and Moto GP, come in the hands of one owner, there is a risk of price increases for the TV rights to these events and a reduction in consumer choice. I am satisfied that the commitments given by CVC will eliminate this risk.” [3] Its final 71% stake in Dorna was sold by CVC for £400million on 28 March, selling the holding to Dorna Sports management.
References
External links
Categories:- Companies established in 1988
- Companies of Spain
- Sport in Madrid
- Grand Prix motorcycle racing
- CVC Capital Partners companies
- Private equity portfolio companies
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