Posts Tagged ‘private equity’

FT: Dorna in the Hands of Private Equity

February 14, 2019

© Bruce Allen

Click here for the full Financial Times article.

Capture

Dorna Sports, rights-holders to MotoGP and WSBK, is being passed around like a teenager in a mosh pit.

This corporate stuff, although largely irrelevant can, at times, prove vexing. The article suggests that MotoGP is a hot property these days with a bright future. Dorna is estimated to have earned about €500MM last year. But private equity is a very dirty business, some of whose practitioners earn a reputation as “vulture capitalists.”

One hopes that the private equity industry leaves MotoGP well enough alone. The amount of infrastructure at this point, by all parties concerned, is enormous. Big enough to affect balance sheets. This seems to show how enormous corporate monoliths like Yamaha can be threatened by these pissant  masters of leverage with no regard whatsoever for the content of the business itself. Parts is parts. Pieces parts. (That’s from an old 1970’s-80’s TV commercial for fried chicken. Find it on YouTube.)

Closer to home for some, the upcoming Brexit, most notably the so-called “No Deal,” will complicate matters for everyone in Europe, but especially in Britain, where an immediate recession is expected. This would compound the expected loss in attendance from fans in EU countries who would then have to go through the rigamarole of customs and etc. to attend, say, Silverstone. It will complicate the transfer of equipment in and out of Britain. Britons are hoarding food and calling up the national guard in anticipation of violence in the streets. The politicians are entwined in a death grip. The EU will not renegotiate. Something’s got to give.

When it does, let’s hope the shrapnel doesn’t catch MotoGP.