Dorna Sports
Encyclopedia
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.
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).
, 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.
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.
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.
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.” Its final 71% stake in Dorna was sold by CVC for £400million on 28 March, selling the holding to Dorna Sports management.
Motorcycle
A motorcycle is a single-track, two-wheeled motor vehicle. Motorcycles vary considerably depending on the task for which they are designed, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road conditions.Motorcycles are one of the most...
sport of MotoGP.
Established in 1988 as an international sports management and marketing company, it is headquartered in Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
, with offices in Barcelona
Barcelona
Barcelona is the second largest city in Spain after Madrid, and the capital of Catalonia, with a population of 1,621,537 within its administrative limits on a land area of...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
. Set up by Banco Banesto as Dorna promoción del deporte, the company was sold to CVC Madrid
CVC Capital Partners
CVC Capital Partners is one of the top five largest private equity firms globally with approximately US$46 billion in funds focused on management buyouts...
in 1998 as the operation developed internationally and was renamed Dorna Sports. It is now owned by its management.
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 SupercrossSupercross
Supercross is a motorcycle racing sport involving off-road motorcycles on an artificially-made dirt tracks consisting of steep jumps and obstacles. Professional supercross contest races are held almost exclusively within professional baseball and football stadiums.-History:Supercross was derived...
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
Motorcycle trials
Motorcycle trials, also termed observed trials, is a non-speed event on specialized motorcycles. The sport is most popular in the United Kingdom and Spain, though there are participants around the globe....
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 EcclestoneBernie Ecclestone
Bernard Charles "Bernie" Ecclestone is an English business magnate, as president and CEO of Formula One Management and Formula One Administration and through his part-ownership of Alpha Prema, the parent company of the Formula One Group of companies. As such, he is generally considered the primary...
, 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 MadridCVC Capital Partners
CVC Capital Partners is one of the top five largest private equity firms globally with approximately US$46 billion in funds focused on management buyouts...
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.
Sale to management
In November 2005 CVC Capital PartnersCVC Capital Partners
CVC Capital Partners is one of the top five largest private equity firms globally with approximately US$46 billion in funds focused on management buyouts...
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
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
on 21 March 2006 subject to the sale of Dorna Sports.
By divesting Dorna, the Commission concluded that CVC’s Formula One transaction would not cause competition concerns. Competition commissioner Neelie Kroes
Neelie Kroes
Neelie Kroes is a Dutch politician of the People's Party for Freedom and Democracy . She served as a Member of the House of Representatives from 3 August 1971 until 28 December 1977 when she became State Secretary for Transport, Public Works and Water Management from 28 December 1977 until 11...
, 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.” Its final 71% stake in Dorna was sold by CVC for £400million on 28 March, selling the holding to Dorna Sports management.