Liberty Media Corp — Call Transcript 2026

Okay, we're gonna get started. Good afternoon, everybody. I'm Ben Swinburne, Morgan Stanley's Media and Telecom Analyst. For important disclosures, please see the Morgan Stanley Research Disclosure website at morganstanley.com/researchdisclosures. I'm excited to welcome to the conference, I think speaking for the first time with us, certainly, is Liberty's CEO, Greg Maffei. Greg has been the CEO of Liberty Media since last February, but is a veteran executive across the global media, sports, and entertainment industry. Greg, thanks for coming. Good to see you. Thanks for having me, Ben, and congratulations on your new gig. Thank you so much. You know, Disney is a big partner of F1's, so I'm very excited to be working. Yeah. With you in that capacity too Absolutely. That sounds great. All right, why don't we get started? There's a lot to talk about and a lot going on in the world. I think maybe we should start with sort of what's happening geopolitically in the Middle East. I think you guys. I know we look at the calendar, there's two races in April in that region. What's sort of the message today to investors on how you guys are thinking about navigating this? Yeah, I mean, clearly it's very timely, and obviously, unfortunate for much broader reasons. I think as it relates to us, well, right now, we have people in transit to Melbourne for the season opening race. That all is, at this point, still going as planned, which we are excited about because it should be, and we'll get more into this later, a very, very exciting season. I think, in particular that as we look at the calendar, we have two races in the Middle East in April, in Bahrain and Jeddah. MotoGP has a race also in Qatar and in April. Those are situations that we are, as you might imagine, clearly monitoring what's going on and how that might impact us. I think that, we'll probably have more definitive news on that in the very near future. Okay. I don't have anything more than that right now. We have, you know, contingency planning that we do on this sort of stuff. You know, we're evaluating that and any potential impacts that might have on our business. Again, no details right now. Again, hopefully, as with all conflicts it ends soon. You know, how it impacts our business, we'll have more news on later. Okay. All right. Nothing to add right now. Why don't we talk a little bit about sort of where Liberty Media is in its what is it, 4.0, I think we're at, per John. You completed the Liberty Live split off in December. Where does that sort of leave the company now, kind of structurally and strategically, if we start high level? Sure. I think the Liberty Live spin off has made us or split off has made us clearly a much more simplified structure. Now we're operating Liberty Media with two primary assets, which is Formula One and MotoGP, two premier sports brands, sports IP. I think as we think about Liberty Media, focusing on those as operating assets and the growth, and what we need to do to support that growth is clearly job one. I think as you look beyond that, where we can continue to grow and seeing Liberty Media as, you know, a continuing growth vehicle, where can we invest into those businesses, alongside those businesses, you know, and then ultimately into similar types of businesses, all that for us is what we're evaluating now. I think that we're excited about what we have. Yeah. We're really excited about, you know, current geopolitical situation notwithstanding, really excited about these businesses. Sure. I'm looking forward to seeing them grow. Great. maybe before we dive into businesses, does the fact that it's a simplified company focused on sports kinda narrow your M&A lens, or Is your M&A lens, was it already narrow maybe before the Liberty Live split off in terms of where you would deploy inorganically? Well, I think if you look at the history of Liberty Media, we've been pretty opportunistic. Yeah. I think that will always be a hallmark of Liberty Media. I do think, though, that, you know, the company is set up in a certain way right now. We have to maintain sort of discipline across what we're investing in and how we're doing that and all that sort of stuff. I would say that, you know, comparable sorts of businesses are the ones we'd be most interested in. I think where we can add value- Mm-hmm. In a Liberty Media sort of way, whether that's through relationships, spotting opportunities, financial structuring, all that sort of stuff would play into what we're gonna pursue. Got it. Maybe just one more. Are there any practical implications that investors should be thinking about of John Malone transitioning to sort of chairman emeritus? you know, how is that impacting sort of the day-to-day running of... in your role as CEO of the company? I would say there's probably negligible impact on a day-to-day basis. Yeah. John has obviously put in what he believes is, you know, skilled management team, a supportive board, a knowledgeable board. I think that it's up to us to plot the strategy as we move forward. That being said, John is, you know, has a significant holding or control of the company, in the company. It would make sense for us to have continuing dialogue with John and understanding sorta, where his priorities are. I think over time, that's kinda been how we've run things, and I don't see that necessarily changing. It, it is great, though, to have John, in the position that he has been in and the position he's in now, because as we all know. You know, John is a long-term holder. Yeah. That has very positive effects for us as we run these businesses. Okay. All right. Why don't we talk about Formula One, the business? You wrapped up, 2025, reporting earnings recently. Revenues were up 14%, adjusted OIBDA up 20%. Of course, the market always wants to know what's next. Maybe you could talk a little bit, about the sort of growth drivers for the business and how sustainable you think those are into the future. Sure. I think, you know, if you look at our revenues, you know, we're sort of got three main sources of revenue, media rights, sponsorship, race promotion, I think, you know, we see different levels of growth across those probably, but I think they're all healthy, which is great. On the media rights side, you know, last year we announced sort of new deals or renewals in the U.S., which I'm sure we'll talk about later. Brazil. Japan. Just this morning, we announced that we are renewing with Foxtel in Australia, ESPN down in Latin America, beIN in Southeast Asia. A lot of activity over the course of the last year with what I believe are the right partners who will help us both from a traditional broadcast standpoint, but as we think about new ways to engage fans, the right partners in a lot of these markets do that. From a race promotion standpoint, you've seen most recently last year, we announced, I believe, renewals in Austria and Austin. We recently announced a new deal with Barcelona, where Barcelona and Spa will rotate races, alternate. We are continuing to see sort of good growth in that sector. We are also continuing to see good demand and interest, both from our existing partners, as well, other cities and locations out there, which I think will help support what we're trying to do continue to do from a global standpoint. The other thing about sort of race promotion that people miss sometimes is you've got, you know, traditionally a fee that gets paid to you to host a race. We have a lot of hospitality. Mm-hmm. Inventory at the race, predominantly the Paddock Club. I think as we renew deals or strike new deals, creating more of that inventory for both us and the local partner is a good thing and produces a lot of value because clearly that type of hospitality and inventory is in high demand. If it's in high demand and you can supply it, hopefully that generates more revenue overall. I think there's twofold, you know, benefits on the race promotion side. I think probably what people are talking about most recently is probably on the sponsorship side. Yeah. Clearly, that team at F1, Stefano, Emily Prazer, those guys have really been honed in on sponsorship and what that means. I think in addition to just sort of the fees that get paid for that sort of business, I think almost more important is the types of companies that we are associating with. When you think about this last year and people coming online and new deals that we've done in terms of, you know, LVMH, Lego, Pepsi, Disney, we just announced earlier this year, a deal with Standard Chartered. Mm. in terms of wealth management. That sort of, has the ability for us to expand our own brand because those guys are sort of associating with us what they're doing, and all the marketing might that a lot of those brands put behind their own brands accrues to us also. Sure. I think the other thing that you're seeing from a sponsorship standpoint that it's good to note is clearly we've added a lot of new sponsors. We do believe that there are categories that are certainly still available. The other interesting dynamic in terms of demand is there's so much demand, it's causing the sort of you have different tiers of sponsors, global sponsors on down. You get movement, sometimes people trading up because they want that profile and therefore paying more. People sometimes trading down because maybe at that level it's no longer affordable for them. You know, when they move down, they're probably coming in at a higher rate than what that level traditionally has been. The other dynamic that you're seeing is people coming to us, existing partners coming out to us and asking to renew early. You know, we just did a Salesforce deal. I think we announced that today. Part of that is them looking out their long term saying, "Hey, this is a brand we wanna continue to affiliate with. We like it. We wanna renew now because we worry that the price goes up... Yeah. as the days go on. Nice. That's great. We'll dive into those revenue streams in more detail in a minute, but I did wanna at least ask you about the upcoming season from an F1, you know, sport and fan point of view. You got new cars, you got a new team coming on. There's a lot of change going on. There's been, I mean, I don't know, some controversy, I guess, if you would agree or not, around during testing. How would you sort of describe the changes coming to F1 this year and what they might mean for the business, as we look out over the course of 2060? Yeah. No, you're right. They're new cars, new engines, new features- Yep. which are, you know, well, people will have to learn and understand. We're trying to make them more user-friendly. I think, you know, it really brings a lot of excitement to what's going on. The fact that you're talking about testing, people didn't know that they tested last year, right? I did not know that. Again, that's bringing sort of more awareness of this sort of thing to all of our fans. I think anything that brings that sort of engagement is always good. Now, the new rules, the new technology, different teams may get impacted differently, but, you know, they're all big boys, and that's part of their job which is to figure out how to sort of maximize their performance under whatever the current rules are. You're seeing a lot of that going on right now. By nature, you know, some people will complain, some people will be happy, and, you know, we'll see how that goes. It'll always bring intrigue. Sure. Which again, is good, because as you know, we're not just a sport, we are an entertainment brand. I think anything that supports that and gets people interested is good. I think when you think about the new teams, Audi and Cadillac. Audi bought Sauber, and Cadillac is a new team to the grid. I think for this market, for the U.S. market. Yeah ... having Cadillac coming in is hugely significant. They spent, I don't know, you probably know what a Super Bowl ad cost this year, like $7 million, something like that. Yeah. Yeah. Cadillac bought a Super Bowl ad, right, to, you know, showcase and introduce their livery and, really that was their coming out. When you have Cadillac, you know, putting the might of the Cadillac organization, behind their F1 entry, you can think about what that then means in terms of, them promoting the sport, their team, whether it's in their dealership, whether dealerships, you know, whether it's through advertising, whatever it is, they're bringing that much more awareness to it too, in a market that hasn't necessarily seen that. Yeah ... from a manufacturer, right? Again, how we engage, how we attract new fans, all that is sort of happening in multiple ways. Only F1 could the Super Bowl ad be filled with drama as always. All right, the other big thing that's happening in the U.S. this year is your Apple deal, which is co-commencing here with Australia coming up, I guess, in a weekend or two. There's been a lot of discussion about, you know, the monetization, the reach elements to it, what Apple brings to the sport. Talk about why you're excited about this partnership and maybe what are the things you think investors might be missing about the benefits long term of being in business with Apple? Yeah. first of all, I do wanna say thank you to ESPN for having a long six-year history with us and helping us to promote the sport, get it to where it is, so you can report that back. Yep. ... to your new bosses. I'll get back to that. But Apple, look, I think we all know sort of the distribution landscape in media, in sports media, has been changing literally every single day over the past 15 years. What we saw was an opportunity with Apple to really go big in this space. To your point, people will question it, and people have questioned it. We feel very confident in sort of this relationship. Apple, in our minds, brings a lot to the table in this construct. It's not just sort of Apple TV, it is sorta Apple Music, Apple News, the Apple Store. Just like we talked about Cadillac earlier, you know, they have similar sort of touch points that go well beyond what you think about from a traditional television standpoint to a traditional video standpoint. We don't focus on reach in sort of, an archaic definition of sort of how many people are watching it on TV, but really how do you touch your fans? How do you engage with your fans? I think as we will see over the next sort of five years, the product should develop. Maybe not so much the 1st year. Yeah. As they put their engineers to task and they think about what they can do with F1, we will see, I think, a lot of cool stuff come out. Look, you know, the Apple movie-. Yeah ... right? This past summer, or last summer, the Apple movie, which grossed over $600 million, right? The biggest sports movie of all time. Brad Pitt's biggest movie of all time. What that did for F1, I think Apple will continue to look for ways to do that sort of... Just yesterday, they had on, you know, right by your offices in, what is it, 1575 Broadway? 1585. 1585 Broadway, right? The F1 on that screen, the cars going right past you. They are committing tons of support, effort, promotional value into this relationship. I think you also saw recently Apple did a deal with IMAX theaters to distribute the races into certain races into those theaters. Just last week, did a deal with Netflix- Yep. where Apple will stream season eight of Drive to Survive. Netflix will broadcast the Canadian Grand Prix this year alongside Apple. You know, two huge platforms coming together to promote F1. Yeah ... at the end of the day, which is phenomenal for us, right? I think when you think about, you know, the, the start of your question, one of the things we saw in doing a deal with Apple is that they're operating in a different space than traditional broadcasters. Sure. Again, not to go back to ESPN, but if you think about it and having sat in this chair a long time ago at DirecTV, where I had to negotiate with all the broadcasters. Sure. Yeah. ... and the limitations I would put on them as part of the negotiation in terms of where they could broadcast, when they could broadcast, all that sort of stuff, would've put someone like ESPN in a much more restrictive position in terms of what they could do with F1 and our product, where Apple could go do that deal with Netflix. Sure. I don't think you'd see that happening, for instance, with an ESPN, right? It opens up many new opportunities for Apple to promote F1 at the end of the day. What is the impact, if at all, on your direct-to-consumer strategy in the U.S.? F1 TV has been a really nice growth story globally, but particularly here. And I think... And I know that's changing at least the way consumers access it within the Apple ecosystem. How do we think about what that product does for the business and whether there's any change as a result of the Apple relationship? I don't think with respect to that business it changes that much other than the way it's sold. As you said, access, right? It's gonna you're gonna get it through the Apple TV platform. You know, for people last year, who depending on what level of service you had, it's probably, you know, a $2 increase or even a $4 decrease from having the standalone F1 product. We don't feel that there's, you know, a huge economic difference on that. Most importantly, F1 TV continues to exist. It's just how it's sold. Yeah. Also means we continue to get data from that product, and that feeds into, as you were saying earlier, our sort of our understanding of our consumer, of our fans. In addition to sort of what they view on F1 TV, what merch they're buying, what tickets they're buying, all that sort of stuff feeds into, "Hey, this is what we know about our fans," which we can, you know, A, understand better, monetize ourselves, serve them better with product and whatever it is. Also for our partners, whether they're sponsors, you know, media partners, whatever it is, give them that information. Mm-hmm ... in a way that is helpful to them, which then brings more value to us because of what they pay us or whatever it is. You know, you mentioned Drive to Survive before. Obviously, that's been a huge part of F1's rise in popularity around the world. You had the F1 movie. Now we're seeing this sort of innovation and evolution of content for the company with Netflix, et cetera. How do you think about content and storytelling just as a continued growth driver for sports, F1 and maybe even for MotoGP over time? Yeah. I think one stat that's important is 60% of our fans, you know, access F1 on a daily basis, right? Whatever that is, reading articles, social media, or watching Instagram of someone's dog or whatever it is, one of the driver's dogs, right? Whatever it is, they're accessing it, which means those people are not just waiting for the race to be broadcast on Sunday. What that says is, "Hey, content is important. Storytelling is important. Yeah. All of that is important because it's what feeds the machine. At the end of the day, it's not just what happens on Sunday. Sunday is exciting, but it's all this other stuff. That also gets us into sort of segmentation of sort of the fan base, right? You've got hardcore fans. You also have casual fans. You have fans who are interested in, you know, the, the testing. Like Ben, you're an expert now, right? You're watching the testing. You know, you may have fans that don't even watch much of the race, but they're engaging in so many different ways because they're watching the movie or you know, they're just watching short-form content on social media of, you know, Lando eating dinner, whatever it is. Content, storytelling, all of that is critical to the brand. Got it. I did wanna ask you mentioned earlier you've had a number of media rights renewals outside the U.S. That's a market investors generally have a little less visibility into. Can you talk a little bit, at least even qualitatively, about sort of the growth you're seeing, in your international renewals since every market is kind of unique? Yeah. What you've seen is, you know, in certain markets. You know, we've just renewed with Foxtel, so that's an existing partner that we're continuing to do business with. In other markets where we might have gone in a different direction. Yeah ... you're actually seeing you know, the traditional, you know, heavyweight broadcasters in some of these markets come back to us or start new with us because they've seen what the growth of F1 is. Globo in Brazil- Right like everyone knows that. Televisa in Mexico, right? Fuji in Japan. Yeah. Right? These are the heavyweights. Them seeing that value and them wanting our product, our races, our content is really a big demonstration to me of what we've done on this front. Okay. You mentioned earlier sponsorship, new categories, different tiers. I think the probably the popular view out there is that's still your highest growth opportunity was on a percentage basis of your major revenue streams. Do you see continued long runway in sponsorship for the business? Yeah. I mean, when I talk to Stefano, he's as pumped as ever. Yeah. So I think- I can hear that. ... he, his team, that's a very, very creative group of people. Yeah. What they've been able to do. I get calls all the time from other leagues because as you might imagine, given my career- New people. ... pretty well-traveled at this point. You know, say, "Hey, how did you do that? How do you do that on hospitality? How do you do that on sponsorship? How'd you come up with that creative idea?" That also tells me, hey, we're doing the right stuff, and I think that creative engine continuing and will continue to lead to successful sort of growth for us. Okay. You guys had your third Las Vegas Grand Prix back in November. Sounds like it was a success, you know, financially. Can you talk a little bit about kinda where that race is, what the long-term vision for that business is, and if you think it continues to be a driver of sort of value for the company over the next couple years? Yeah. If you go back to before we started Vegas, I think there were. You know, we were taking on a lot. Yeah. I think we all recognized it was probably gonna be a bumpy road, but, you know, the reward at the end of all of it was gonna be there. Even though we're not anywhere near the end, even three years later, we've seen that pan out, right? First few years just operationally. Yeah ... getting that right and probably spending in places just because you had to get the race going that evening. Our relations with the community, probably not great off the start, right? You think about it, a new race in your city, shutting down the streets for three nights or whatever it is, not a great look. Yeah. Now, three years later, you've seen our community relations, our local relations probably in as good a spot as ever. You know, people in Vegas take pride in the fact that the race is there now. That, I think, has allowed us to work much more collaboratively with the local governments, with our local partners, right, the casinos, to actually start thinking about really what this can become in the future and not, hey, complaining about the fact that we did this wrong or they did that wrong or, you know, that sort of stuff, which over the first two years you probably had that. Hopefully through the growing pains and now thinking about what the future can hold. We are working very closely with all of them to figure out how do we make the race better, how do we present it better, how do we help casinos sell, how do they help us, drive fans, and all that sort of stuff, which is a pretty cool place to be. I think that, you know, one of your points is what does this mean for F1? It means a ton. Yeah. Right? I think most visibly, sort of the impact in the U.S. Yeah ... and what Vegas has meant. It's been the third race, but, you know, I think people look at it and they're like, "Oh my God, you know, three races now, Vegas, Miami, Austin, this is a critical piece of that strategy." The other thing that you've seen, one of the reasons that we made this investment as opposed to licensing it to someone else was sort of speed to market and getting it done in our own way. We were able to do that, and I think that turned on, we talked about sponsorship earlier, a few different sponsors that sort of engaged with us because we had Vegas and now have gone, say, global with us. Amex is a, is a great example of that. What Vegas has done to sort of burnish the brand around the world globally is sort of a huge impact that doesn't always show up, you know, in the direct Vegas P&L. Yeah. I mean, given those benefits, would it make sense to self-promote, so to speak, in other markets? Is this really a unique situation given the U.S. and Vegas? Yeah. I think it's pretty unique. Yeah ... just because we're operating in a jurisdiction where we actually have familiarity. Yeah. I think there was reason why Vegas itself was critical to our strategy, and I just elaborated as to why. I wouldn't say we wouldn't do it somewhere else, but stars would have to align in a way that made sense for us to do it versus sort of, you know, several other people who are now clamoring to get in with races in different locations. Okay. Last F1 question, and we'll turn to MotoGP. You've got the Concorde Agreement now done that runs through 2030, so you have line of sight on all the pieces of your relationship with the teams. What should investors understand about the, in particular, the team payment structure and sort of the operating leverage that the business can see over the course of the five years? Yeah, I think what we said recently is we see about 200 basis points in 2026 and then stable sort of after that. I think the best part about the Concorde Agreement is a continuation of an arrangement with all the people in the ecosystem that matter for another five years. We have, you know, the operating parameters of how we work together over the next five years. If you go back 10 years to when Liberty bought F1 and the state of the relationships with, you know, F1 and the promoters, F1 and the teams, not good. Not good at all. Right. I think a large part of the success most recently has been the fact that the level of trust that exists now between us and the teams is significantly different than what it was, you know, 10 years ago. Now we come together and think about collaborating on stuff, not what are you trying to take from me versus, you know, him and why does he get that. I think you've seen it play out. You know, Drive to Survive, the first season, Ferrari and Mercedes. Right. Who are not there. ... were not there. Forgot about that. Right? Yeah. Now you do these different projects, whether it's Disney or Lego and things like that, where you need everyone to participate, and you see them all sort of coming to the table. Yeah, we still squabble on stuff, but, you know, it's all small relative to the fact that everyone's gotten religion around the fact that if we can work together, the whole pie grows and everyone benefits. Yeah. Well, the team values have definitely grown. They have. All right, let's talk about MotoGP. You closed that deal last summer. How would you say the business is performing versus your kind of initial underwriting plan? Any surprises, good or bad, that we should be aware of at this point? Yeah. We're still, you know, getting into it, but I think coming away with our initial impressions as, you know, very, very excited to have this business. Yeah. There aren't many businesses like this. you know, you go to a couple of these races and you understand sort of the passion that is there. You also understand just the sport itself and sort of the emotion that it evokes because it is so sort of raw and dangerous, and that is what that brand, I think, will be. I think from a business commercialization standpoint, it's gonna be a bit of a build. You know, we've talked about that, which is, hey, we gotta build the pieces to this. I don't think there's fundamentally anything to the sport per se and huge investment that way. It's building out, you know, the team and people with the requisite skills in terms of building brands, commercializing, the enterprise. That's all sort of doable in our minds. It will take some time. It probably will be a little bit choppy. You know, as we start to look towards 2027, in 2027 we start to see some of the rise in sort of promoters as we have struck new deals, and those will start to flow in, I think, in 2027. We're already having, you know, engaged conversations on the media front with respect to renewals that we have, our deals that are gonna come up. Then, you know, on sponsorship, it is still predominantly endemic sponsors. Yeah. That's gonna be an area of opportunity. As we sort of, again, build that brand, and then monetize against it, we'll see sort of more general sponsors come in. I think an important thing here is it is an amazing sport and an amazing brand with a long history. There are a lot of stories to be told. We just need to tell it to more people. Sure. We will build that audience, and we will build that fan engagement. To that end, you've got your team deal up, I think at the end of 2026 with the MotoGP teams. What are your main objectives? What are you trying to get out of that renewal to help, you know, realize the opportunity? I think we're close to getting that done. Okay. I think what we're trying to do there is sort of build a construct with those teams where people, again, have a similar level of trust with each other, understand that, you know, we're all in this to build the business. I think we will get there. I think there's opportunity that is playing out on the team side. you know, Tech3 was sold recently to a group led by David Blitzer, Main Street Advisors. Look, these are people that understand sport as an entertainment asset and the fact that you actually need to invest. Yeah. I know a couple other teams may sort of have new investors come in at some point, and what we're looking for is those investors to have a similar mindset to us. Again, how do we invest and build this sport together? I think you'll see sort of a lot of success over, you know, several year period once that happens. Okay. Maybe in the last couple minutes, Greg, Liberty always has, or not always, but certainly under the F1 MotoGP world, has a high-class problem of generating a lot of cash flow and deleveraging pretty rapidly. You guys, I don't think have a sort of formal leverage target anymore. Yeah. How should your investors think about deploying capital, you know, over the next couple years as the balance sheet gets to be at a leverage level that's, you know, pretty, at least my words, conservative over the next few years? Sure. I think we talked about this at the beginning, but, we are deleveraging. To your point, hopefully we'd be at a point relatively soon where you'd say, "Hey, how are you investing your capital? Yes. I think what we talked about is we would like to invest in growth in our businesses, growth alongside our businesses, you know, similar types of businesses. You know, kinda what I was talking about earlier. Then, you know, maintaining sort of that disciplined approach to it, trying to leverage off of what Liberty has done in the past, what it is now, our relationships, our ability to spot those sorts of opportunities, our ability to finance them creatively. But you know, we're also not gonna do sort of dumb deals. We also understand sort of what the expectations are, so we've gotta make sure that whatever we do, we have the ability to explain that properly to our investors. I do feel like Liberty now, after what we did last year with a lot of the corporate maneuverings, the acquisition of MotoGP, the split off of Liberty Live at the end of the year, you know, we're in a good position. Yeah. You talked about the financial strength, and I think we should use that. Okay. Well, we're out of time. Greg, thanks so much for coming. Good to see you. Thanks for having me. Thank you, everyone.

Speaker 2: Okay, we're gonna get started. Good afternoon, everybody. I'm Ben Swinburne, Morgan Stanley's Media and Telecom Analyst. For important disclosures, please see the Morgan Stanley Research Disclosure website at morganstanley.com/researchdisclosures. I'm excited to welcome to the conference, I think speaking for the first time with us, certainly, is Liberty's CEO, Greg Maffei. Greg has been the CEO of Liberty Media since last February, but is a veteran executive across the global media, sports, and entertainment industry. Greg, thanks for coming. Good to see you. Okay, we're gonna get started. okay we're gonna get started Good afternoon, everybody. good afternoon everybody I'm Ben Swinburne, Morgan Stanley's Media and Telecom Analyst. i'm ben swinburne morgan stanley's media and telecom analyst For important disclosures, please see the Morgan Stanley Research Disclosure website at morganstanley.com/researchdisclosures. for important disclosures please see the morgan stanley research disclosure website at morganstanley.com/researchdisclosures I'm excited to welcome to the conference, I think speaking for the first time with us, certainly, is Liberty's CEO, Greg Maffei. i'm excited to welcome to the conference i think speaking for the first time with us certainly is liberty's ceo greg maffei Greg has been the CEO of Liberty Media since last February, but is a veteran executive across the global media, sports, and entertainment industry. greg has been the ceo of liberty media since last february but is a veteran executive across the global media sports and entertainment industry Greg, thanks for coming. greg thanks for coming Good to see you. good to see you

Speaker 1: Thanks for having me, Ben, and congratulations on your new gig. Thanks for having me, Ben, and congratulations on your new gig. thanks for having me ben and congratulations on your new gig

Speaker 2: Thank you so much. Thank you so much. thank you so much

Speaker 1: You know, Disney is a big partner of F1's, so I'm very excited to be working. You know, Disney is a big partner of F1's, so I'm very excited to be working. you know disney is a big partner of f1's so i'm very excited to be working

Speaker 2: Yeah. Yeah. yeah

Speaker 1: With you in that capacity too With you in that capacity too with you in that capacity too

Speaker 2: Absolutely. That sounds great. All right, why don't we get started? There's a lot to talk about and a lot going on in the world. I think maybe we should start with sort of what's happening geopolitically in the Middle East. I think you guys. I know we look at the calendar, there's two races in April in that region. What's sort of the message today to investors on how you guys are thinking about navigating this? Absolutely. absolutely That sounds great. that sounds great All right, why don't we get started? all right why don't we get started There's a lot to talk about and a lot going on in the world. there's a lot to talk about and a lot going on in the world I think maybe we should start with sort of what's happening geopolitically in the Middle East. i think maybe we should start with sort of what's happening geopolitically in the middle east I think you guys. i think you guys I know we look at the calendar, there's two races in April in that region. i know we look at the calendar there's two races in april in that region What's sort of the message today to investors on how you guys are thinking about navigating this? what's sort of the message today to investors on how you guys are thinking about navigating this

Speaker 1: Yeah, I mean, clearly it's very timely, and obviously, unfortunate for much broader reasons. I think as it relates to us, well, right now, we have people in transit to Melbourne for the season opening race. That all is, at this point, still going as planned, which we are excited about because it should be, and we'll get more into this later, a very, very exciting season. I think, in particular that as we look at the calendar, we have two races in the Middle East in April, in Bahrain and Jeddah. MotoGP has a race also in Qatar and in April. Those are situations that we are, as you might imagine, clearly monitoring what's going on and how that might impact us. Yeah, I mean, clearly it's very timely, and obviously, unfortunate for much broader reasons. yeah i mean clearly it's very timely and obviously unfortunate for much broader reasons I think as it relates to us, well, right now, we have people in transit to Melbourne for the season opening race. i think as it relates to us well right now we have people in transit to melbourne for the season opening race That all is, at this point, still going as planned, which we are excited about because it should be, and we'll get more into this later, a very, very exciting season. that all is at this point still going as planned which we are excited about because it should be and we'll get more into this later a very very exciting season I think, in particular that as we look at the calendar, we have two races in the Middle East in April, in Bahrain and Jeddah. i think in particular that as we look at the calendar we have two races in the middle east in april in bahrain and jeddah MotoGP has a race also in Qatar and in April. motogp has a race also in qatar and in april Those are situations that we are, as you might imagine, clearly monitoring what's going on and how that might impact us. those are situations that we are as you might imagine clearly monitoring what's going on and how that might impact us I think that, we'll probably have more definitive news on that in the very near future. I think that, we'll probably have more definitive news on that in the very near future. i think that we'll probably have more definitive news on that in the very near future

Speaker 2: Okay. Okay. okay

Speaker 1: I don't have anything more than that right now. We have, you know, contingency planning that we do on this sort of stuff. You know, we're evaluating that and any potential impacts that might have on our business. Again, no details right now. Again, hopefully, as with all conflicts it ends soon. You know, how it impacts our business, we'll have more news on later. I don't have anything more than that right now. i don't have anything more than that right now We have, you know, contingency planning that we do on this sort of stuff. we have you know contingency planning that we do on this sort of stuff You know, we're evaluating that and any potential impacts that might have on our business. you know we're evaluating that and any potential impacts that might have on our business Again, no details right now. again no details right now Again, hopefully, as with all conflicts it ends soon. again hopefully as with all conflicts it ends soon You know, how it impacts our business, we'll have more news on later. you know how it impacts our business we'll have more news on later

Speaker 2: Okay. All right. Nothing to add right now. Why don't we talk a little bit about sort of where Liberty Media is in its what is it, 4.0, I think we're at, per John. You completed the Liberty Live split off in December. Where does that sort of leave the company now, kind of structurally and strategically, if we start high level? Okay. okay All right. all right Nothing to add right now. nothing to add right now Why don't we talk a little bit about sort of where Liberty Media is in its what is it, 4.0, I think we're at, per John. why don't we talk a little bit about sort of where liberty media is in its what is it 4.0 i think we're at per john You completed the Liberty Live split off in December. you completed the liberty live split off in december Where does that sort of leave the company now, kind of structurally and strategically, if we start high level? where does that sort of leave the company now kind of structurally and strategically if we start high level

Speaker 1: Sure. I think the Liberty Live spin off has made us or split off has made us clearly a much more simplified structure. Now we're operating Liberty Media with two primary assets, which is Formula One and MotoGP, two premier sports brands, sports IP. I think as we think about Liberty Media, focusing on those as operating assets and the growth, and what we need to do to support that growth is clearly job one. I think as you look beyond that, where we can continue to grow and seeing Liberty Media as, you know, a continuing growth vehicle, where can we invest into those businesses, alongside those businesses, you know, and then ultimately into similar types of businesses, all that for us is what we're evaluating now. Sure. sure I think the Liberty Live spin off has made us or split off has made us clearly a much more simplified structure. i think the liberty live spin off has made us or split off has made us clearly a much more simplified structure Now we're operating Liberty Media with two primary assets, which is Formula One and MotoGP, two premier sports brands, sports IP. now we're operating liberty media with two primary assets which is formula one and motogp two premier sports brands sports ip I think as we think about Liberty Media, focusing on those as operating assets and the growth, and what we need to do to support that growth is clearly job one. i think as we think about liberty media focusing on those as operating assets and the growth and what we need to do to support that growth is clearly job one I think as you look beyond that, where we can continue to grow and seeing Liberty Media as, you know, a continuing growth vehicle, where can we invest into those businesses, alongside those businesses, you know, and then ultimately into similar types of businesses, all that for us is what we're evaluating now. i think as you look beyond that where we can continue to grow and seeing liberty media as you know a continuing growth vehicle where can we invest into those businesses alongside those businesses you know and then ultimately into similar types of businesses all that for us is what we're evaluating now I think that we're excited about what we have. I think that we're excited about what we have. i think that we're excited about what we have

Speaker 2: Yeah. Yeah. yeah

Speaker 1: We're really excited about, you know, current geopolitical situation notwithstanding, really excited about these businesses. We're really excited about, you know, current geopolitical situation notwithstanding, really excited about these businesses. we're really excited about you know current geopolitical situation notwithstanding really excited about these businesses

Speaker 2: Sure. Sure. sure

Speaker 1: I'm looking forward to seeing them grow. I'm looking forward to seeing them grow. i'm looking forward to seeing them grow

Speaker 2: Great. maybe before we dive into businesses, does the fact that it's a simplified company focused on sports kinda narrow your M&A lens, or Is your M&A lens, was it already narrow maybe before the Liberty Live split off in terms of where you would deploy inorganically? Great. maybe before we dive into businesses, does the fact that it's a simplified company focused on sports kinda narrow your M&A lens, or Is your M&A lens, was it already narrow maybe before the Liberty Live split off in terms of where you would deploy inorganically? great maybe before we dive into businesses does the fact that it's a simplified company focused on sports kinda narrow your m&a lens or is your m&a lens was it already narrow maybe before the liberty live split off in terms of where you would deploy inorganically

Speaker 1: Well, I think if you look at the history of Liberty Media, we've been pretty opportunistic. Well, I think if you look at the history of Liberty Media, we've been pretty opportunistic. well i think if you look at the history of liberty media we've been pretty opportunistic

Speaker 2: Yeah. Yeah. yeah

Speaker 1: I think that will always be a hallmark of Liberty Media. I do think, though, that, you know, the company is set up in a certain way right now. We have to maintain sort of discipline across what we're investing in and how we're doing that and all that sort of stuff. I would say that, you know, comparable sorts of businesses are the ones we'd be most interested in. I think where we can add value- I think that will always be a hallmark of Liberty Media. i think that will always be a hallmark of liberty media I do think, though, that, you know, the company is set up in a certain way right now. i do think though that you know the company is set up in a certain way right now We have to maintain sort of discipline across what we're investing in and how we're doing that and all that sort of stuff. we have to maintain sort of discipline across what we're investing in and how we're doing that and all that sort of stuff I would say that, you know, comparable sorts of businesses are the ones we'd be most interested in. i would say that you know comparable sorts of businesses are the ones we'd be most interested in I think where we can add value- i think where we can add value-

Speaker 2: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: In a Liberty Media sort of way, whether that's through relationships, spotting opportunities, financial structuring, all that sort of stuff would play into what we're gonna pursue. In a Liberty Media sort of way, whether that's through relationships, spotting opportunities, financial structuring, all that sort of stuff would play into what we're gonna pursue. in a liberty media sort of way whether that's through relationships spotting opportunities financial structuring all that sort of stuff would play into what we're gonna pursue

Speaker 2: Got it. Maybe just one more. Are there any practical implications that investors should be thinking about of John Malone transitioning to sort of chairman emeritus? you know, how is that impacting sort of the day-to-day running of... in your role as CEO of the company? Got it. got it Maybe just one more. maybe just one more Are there any practical implications that investors should be thinking about of John Malone transitioning to sort of chairman emeritus? you know, how is that impacting sort of the day-to-day running of... in your role as CEO of the company? are there any practical implications that investors should be thinking about of john malone transitioning to sort of chairman emeritus you know how is that impacting sort of the day-to-day running of in your role as ceo of the company

Speaker 1: I would say there's probably negligible impact on a day-to-day basis. I would say there's probably negligible impact on a day-to-day basis. i would say there's probably negligible impact on a day-to-day basis

Speaker 2: Yeah. Yeah. yeah

Speaker 1: John has obviously put in what he believes is, you know, skilled management team, a supportive board, a knowledgeable board. I think that it's up to us to plot the strategy as we move forward. That being said, John is, you know, has a significant holding or control of the company, in the company. It would make sense for us to have continuing dialogue with John and understanding sorta, where his priorities are. I think over time, that's kinda been how we've run things, and I don't see that necessarily changing. It, it is great, though, to have John, in the position that he has been in and the position he's in now, because as we all know. You know, John is a long-term holder. John has obviously put in what he believes is, you know, skilled management team, a supportive board, a knowledgeable board. john has obviously put in what he believes is you know skilled management team a supportive board a knowledgeable board I think that it's up to us to plot the strategy as we move forward. i think that it's up to us to plot the strategy as we move forward That being said, John is, you know, has a significant holding or control of the company, in the company. that being said john is you know has a significant holding or control of the company in the company It would make sense for us to have continuing dialogue with John and understanding sorta, where his priorities are. it would make sense for us to have continuing dialogue with john and understanding sorta where his priorities are I think over time, that's kinda been how we've run things, and I don't see that necessarily changing. i think over time that's kinda been how we've run things and i don't see that necessarily changing It, it is great, though, to have John, in the position that he has been in and the position he's in now, because as we all know. You know, John is a long-term holder. it it is great though to have john in the position that he has been in and the position he's in now because as we all know. you know john is a long-term holder

Speaker 2: Yeah. Yeah. yeah

Speaker 1: That has very positive effects for us as we run these businesses. That has very positive effects for us as we run these businesses. that has very positive effects for us as we run these businesses

Speaker 2: Okay. All right. Why don't we talk about Formula One, the business? You wrapped up, 2025, reporting earnings recently. Revenues were up 14%, adjusted OIBDA up 20%. Of course, the market always wants to know what's next. Maybe you could talk a little bit, about the sort of growth drivers for the business and how sustainable you think those are into the future. Okay. okay All right. all right Why don't we talk about Formula One, the business? why don't we talk about formula one the business You wrapped up, 2025, reporting earnings recently. you wrapped up 2025 reporting earnings recently Revenues were up 14%, adjusted OIBDA up 20%. revenues were up 14% adjusted oibda up 20% Of course, the market always wants to know what's next. of course the market always wants to know what's next Maybe you could talk a little bit, about the sort of growth drivers for the business and how sustainable you think those are into the future. maybe you could talk a little bit about the sort of growth drivers for the business and how sustainable you think those are into the future

Speaker 1: Sure. I think, you know, if you look at our revenues, you know, we're sort of got three main sources of revenue, media rights, sponsorship, race promotion, I think, you know, we see different levels of growth across those probably, but I think they're all healthy, which is great. On the media rights side, you know, last year we announced sort of new deals or renewals in the U.S., which I'm sure we'll talk about later. Brazil. Japan. Just this morning, we announced that we are renewing with Foxtel in Australia, ESPN down in Latin America, beIN in Southeast Asia. Sure. sure I think, you know, if you look at our revenues, you know, we're sort of got three main sources of revenue, media rights, sponsorship, race promotion, I think, you know, we see different levels of growth across those probably, but I think they're all healthy, which is great. i think you know if you look at our revenues you know we're sort of got three main sources of revenue media rights sponsorship race promotion i think you know we see different levels of growth across those probably but i think they're all healthy which is great On the media rights side, you know, last year we announced sort of new deals or renewals in the U.S., which I'm sure we'll talk about later. on the media rights side you know last year we announced sort of new deals or renewals in the u.s which i'm sure we'll talk about later Brazil. brazil Japan. japan Just this morning, we announced that we are renewing with Foxtel in Australia, ESPN down in Latin America, beIN in Southeast Asia. just this morning we announced that we are renewing with foxtel in australia espn down in latin america bein in southeast asia A lot of activity over the course of the last year with what I believe are the right partners who will help us both from a traditional broadcast standpoint, but as we think about new ways to engage fans, the right partners in a lot of these markets do that. From a race promotion standpoint, you've seen most recently last year, we announced, I believe, renewals in Austria and Austin. We recently announced a new deal with Barcelona, where Barcelona and Spa will rotate races, alternate. We are continuing to see sort of good growth in that sector. A lot of activity over the course of the last year with what I believe are the right partners who will help us both from a traditional broadcast standpoint, but as we think about new ways to engage fans, the right partners in a lot of these markets do that. a lot of activity over the course of the last year with what i believe are the right partners who will help us both from a traditional broadcast standpoint but as we think about new ways to engage fans the right partners in a lot of these markets do that From a race promotion standpoint, you've seen most recently last year, we announced, I believe, renewals in Austria and Austin. from a race promotion standpoint you've seen most recently last year we announced i believe renewals in austria and austin We recently announced a new deal with Barcelona, where Barcelona and Spa will rotate races, alternate. we recently announced a new deal with barcelona where barcelona and spa will rotate races alternate We are continuing to see sort of good growth in that sector. we are continuing to see sort of good growth in that sector We are also continuing to see good demand and interest, both from our existing partners, as well, other cities and locations out there, which I think will help support what we're trying to do continue to do from a global standpoint. The other thing about sort of race promotion that people miss sometimes is you've got, you know, traditionally a fee that gets paid to you to host a race. We have a lot of hospitality. We are also continuing to see good demand and interest, both from our existing partners, as well, other cities and locations out there, which I think will help support what we're trying to do continue to do from a global standpoint. we are also continuing to see good demand and interest both from our existing partners as well other cities and locations out there which i think will help support what we're trying to do continue to do from a global standpoint The other thing about sort of race promotion that people miss sometimes is you've got, you know, traditionally a fee that gets paid to you to host a race. the other thing about sort of race promotion that people miss sometimes is you've got you know traditionally a fee that gets paid to you to host a race We have a lot of hospitality. we have a lot of hospitality

Speaker 2: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: Inventory at the race, predominantly the Paddock Club. I think as we renew deals or strike new deals, creating more of that inventory for both us and the local partner is a good thing and produces a lot of value because clearly that type of hospitality and inventory is in high demand. If it's in high demand and you can supply it, hopefully that generates more revenue overall. I think there's twofold, you know, benefits on the race promotion side. I think probably what people are talking about most recently is probably on the sponsorship side. Inventory at the race, predominantly the Paddock Club. inventory at the race predominantly the paddock club I think as we renew deals or strike new deals, creating more of that inventory for both us and the local partner is a good thing and produces a lot of value because clearly that type of hospitality and inventory is in high demand. i think as we renew deals or strike new deals creating more of that inventory for both us and the local partner is a good thing and produces a lot of value because clearly that type of hospitality and inventory is in high demand If it's in high demand and you can supply it, hopefully that generates more revenue overall. if it's in high demand and you can supply it hopefully that generates more revenue overall I think there's twofold, you know, benefits on the race promotion side. i think there's twofold you know benefits on the race promotion side I think probably what people are talking about most recently is probably on the sponsorship side. i think probably what people are talking about most recently is probably on the sponsorship side

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Clearly, that team at F1, Stefano, Emily Prazer, those guys have really been honed in on sponsorship and what that means. I think in addition to just sort of the fees that get paid for that sort of business, I think almost more important is the types of companies that we are associating with. When you think about this last year and people coming online and new deals that we've done in terms of, you know, LVMH, Lego, Pepsi, Disney, we just announced earlier this year, a deal with Standard Chartered. Clearly, that team at F1, Stefano, Emily Prazer, those guys have really been honed in on sponsorship and what that means. clearly that team at f1 stefano emily prazer those guys have really been honed in on sponsorship and what that means I think in addition to just sort of the fees that get paid for that sort of business, I think almost more important is the types of companies that we are associating with. i think in addition to just sort of the fees that get paid for that sort of business i think almost more important is the types of companies that we are associating with When you think about this last year and people coming online and new deals that we've done in terms of, you know, LVMH, Lego, Pepsi, Disney, we just announced earlier this year, a deal with Standard Chartered. when you think about this last year and people coming online and new deals that we've done in terms of you know lvmh lego pepsi disney we just announced earlier this year a deal with standard chartered

Speaker 2: Mm. Mm. mm

Speaker 1: in terms of wealth management. That sort of, has the ability for us to expand our own brand because those guys are sort of associating with us what they're doing, and all the marketing might that a lot of those brands put behind their own brands accrues to us also. in terms of wealth management. in terms of wealth management That sort of, has the ability for us to expand our own brand because those guys are sort of associating with us what they're doing, and all the marketing might that a lot of those brands put behind their own brands accrues to us also. that sort of has the ability for us to expand our own brand because those guys are sort of associating with us what they're doing and all the marketing might that a lot of those brands put behind their own brands accrues to us also

Speaker 2: Sure. Sure. sure

Speaker 1: I think the other thing that you're seeing from a sponsorship standpoint that it's good to note is clearly we've added a lot of new sponsors. We do believe that there are categories that are certainly still available. The other interesting dynamic in terms of demand is there's so much demand, it's causing the sort of you have different tiers of sponsors, global sponsors on down. You get movement, sometimes people trading up because they want that profile and therefore paying more. People sometimes trading down because maybe at that level it's no longer affordable for them. You know, when they move down, they're probably coming in at a higher rate than what that level traditionally has been. The other dynamic that you're seeing is people coming to us, existing partners coming out to us and asking to renew early. I think the other thing that you're seeing from a sponsorship standpoint that it's good to note is clearly we've added a lot of new sponsors. i think the other thing that you're seeing from a sponsorship standpoint that it's good to note is clearly we've added a lot of new sponsors We do believe that there are categories that are certainly still available. we do believe that there are categories that are certainly still available The other interesting dynamic in terms of demand is there's so much demand, it's causing the sort of you have different tiers of sponsors, global sponsors on down. the other interesting dynamic in terms of demand is there's so much demand it's causing the sort of you have different tiers of sponsors global sponsors on down You get movement, sometimes people trading up because they want that profile and therefore paying more. you get movement sometimes people trading up because they want that profile and therefore paying more People sometimes trading down because maybe at that level it's no longer affordable for them. people sometimes trading down because maybe at that level it's no longer affordable for them You know, when they move down, they're probably coming in at a higher rate than what that level traditionally has been. you know when they move down they're probably coming in at a higher rate than what that level traditionally has been The other dynamic that you're seeing is people coming to us, existing partners coming out to us and asking to renew early. the other dynamic that you're seeing is people coming to us existing partners coming out to us and asking to renew early You know, we just did a Salesforce deal. I think we announced that today. Part of that is them looking out their long term saying, "Hey, this is a brand we wanna continue to affiliate with. We like it. We wanna renew now because we worry that the price goes up... You know, we just did a Salesforce deal. you know we just did a salesforce deal I think we announced that today. i think we announced that today Part of that is them looking out their long term saying, "Hey, this is a brand we wanna continue to affiliate with. part of that is them looking out their long term saying "hey this is a brand we wanna continue to affiliate with We like it. we like it We wanna renew now because we worry that the price goes up... we wanna renew now because we worry that the price goes up

Speaker 2: Yeah. Yeah. yeah

Speaker 1: as the days go on. as the days go on. as the days go on

Speaker 2: Nice. That's great. We'll dive into those revenue streams in more detail in a minute, but I did wanna at least ask you about the upcoming season from an F1, you know, sport and fan point of view. You got new cars, you got a new team coming on. There's a lot of change going on. There's been, I mean, I don't know, some controversy, I guess, if you would agree or not, around during testing. How would you sort of describe the changes coming to F1 this year and what they might mean for the business, as we look out over the course of 2060? Nice. nice That's great. that's great We'll dive into those revenue streams in more detail in a minute, but I did wanna at least ask you about the upcoming season from an F1, you know, sport and fan point of view. we'll dive into those revenue streams in more detail in a minute but i did wanna at least ask you about the upcoming season from an f1 you know sport and fan point of view You got new cars, you got a new team coming on. you got new cars you got a new team coming on There's a lot of change going on. there's a lot of change going on There's been, I mean, I don't know, some controversy, I guess, if you would agree or not, around during testing. there's been i mean i don't know some controversy i guess if you would agree or not around during testing How would you sort of describe the changes coming to F1 this year and what they might mean for the business, as we look out over the course of 2060? how would you sort of describe the changes coming to f1 this year and what they might mean for the business as we look out over the course of 2060

Speaker 1: Yeah. No, you're right. They're new cars, new engines, new features- Yeah. yeah No, you're right. no you're right They're new cars, new engines, new features- they're new cars new engines new features-

Speaker 2: Yep. Yep. yep

Speaker 1: which are, you know, well, people will have to learn and understand. We're trying to make them more user-friendly. I think, you know, it really brings a lot of excitement to what's going on. The fact that you're talking about testing, people didn't know that they tested last year, right? which are, you know, well, people will have to learn and understand. which are you know well people will have to learn and understand We're trying to make them more user-friendly. we're trying to make them more user-friendly I think, you know, it really brings a lot of excitement to what's going on. i think you know it really brings a lot of excitement to what's going on The fact that you're talking about testing, people didn't know that they tested last year, right? the fact that you're talking about testing people didn't know that they tested last year right

Speaker 2: I did not know that. I did not know that. i did not know that

Speaker 1: Again, that's bringing sort of more awareness of this sort of thing to all of our fans. I think anything that brings that sort of engagement is always good. Now, the new rules, the new technology, different teams may get impacted differently, but, you know, they're all big boys, and that's part of their job which is to figure out how to sort of maximize their performance under whatever the current rules are. You're seeing a lot of that going on right now. By nature, you know, some people will complain, some people will be happy, and, you know, we'll see how that goes. It'll always bring intrigue. Again, that's bringing sort of more awareness of this sort of thing to all of our fans. again that's bringing sort of more awareness of this sort of thing to all of our fans I think anything that brings that sort of engagement is always good. i think anything that brings that sort of engagement is always good Now, the new rules, the new technology, different teams may get impacted differently, but, you know, they're all big boys, and that's part of their job which is to figure out how to sort of maximize their performance under whatever the current rules are. now the new rules the new technology different teams may get impacted differently but you know they're all big boys and that's part of their job which is to figure out how to sort of maximize their performance under whatever the current rules are You're seeing a lot of that going on right now. you're seeing a lot of that going on right now By nature, you know, some people will complain, some people will be happy, and, you know, we'll see how that goes. by nature you know some people will complain some people will be happy and you know we'll see how that goes It'll always bring intrigue. it'll always bring intrigue

Speaker 2: Sure. Sure. sure

Speaker 1: Which again, is good, because as you know, we're not just a sport, we are an entertainment brand. I think anything that supports that and gets people interested is good. I think when you think about the new teams, Audi and Cadillac. Audi bought Sauber, and Cadillac is a new team to the grid. I think for this market, for the U.S. market. Which again, is good, because as you know, we're not just a sport, we are an entertainment brand. which again is good because as you know we're not just a sport we are an entertainment brand I think anything that supports that and gets people interested is good. i think anything that supports that and gets people interested is good I think when you think about the new teams, Audi and Cadillac. i think when you think about the new teams audi and cadillac Audi bought Sauber, and Cadillac is a new team to the grid. audi bought sauber and cadillac is a new team to the grid I think for this market, for the U.S. market. i think for this market for the u.s market

Speaker 2: Yeah Yeah yeah

Speaker 1: ... having Cadillac coming in is hugely significant. They spent, I don't know, you probably know what a Super Bowl ad cost this year, like $7 million, something like that. ... having Cadillac coming in is hugely significant. having cadillac coming in is hugely significant They spent, I don't know, you probably know what a Super Bowl ad cost this year, like $7 million, something like that. they spent i don't know you probably know what a super bowl ad cost this year like $7 million something like that

Speaker 2: Yeah. Yeah. Yeah. yeah Yeah. yeah

Speaker 1: Cadillac bought a Super Bowl ad, right, to, you know, showcase and introduce their livery and, really that was their coming out. When you have Cadillac, you know, putting the might of the Cadillac organization, behind their F1 entry, you can think about what that then means in terms of, them promoting the sport, their team, whether it's in their dealership, whether dealerships, you know, whether it's through advertising, whatever it is, they're bringing that much more awareness to it too, in a market that hasn't necessarily seen that. Cadillac bought a Super Bowl ad, right, to, you know, showcase and introduce their livery and, really that was their coming out. cadillac bought a super bowl ad right to you know showcase and introduce their livery and really that was their coming out When you have Cadillac, you know, putting the might of the Cadillac organization, behind their F1 entry, you can think about what that then means in terms of, them promoting the sport, their team, whether it's in their dealership, whether dealerships, you know, whether it's through advertising, whatever it is, they're bringing that much more awareness to it too, in a market that hasn't necessarily seen that. when you have cadillac you know putting the might of the cadillac organization behind their f1 entry you can think about what that then means in terms of them promoting the sport their team whether it's in their dealership whether dealerships you know whether it's through advertising whatever it is they're bringing that much more awareness to it too in a market that hasn't necessarily seen that

Speaker 2: Yeah Yeah yeah

Speaker 1: ... from a manufacturer, right? Again, how we engage, how we attract new fans, all that is sort of happening in multiple ways. ... from a manufacturer, right? from a manufacturer right Again, how we engage, how we attract new fans, all that is sort of happening in multiple ways. again how we engage how we attract new fans all that is sort of happening in multiple ways

Speaker 2: Only F1 could the Super Bowl ad be filled with drama as always. All right, the other big thing that's happening in the U.S. this year is your Apple deal, which is co-commencing here with Australia coming up, I guess, in a weekend or two. There's been a lot of discussion about, you know, the monetization, the reach elements to it, what Apple brings to the sport. Talk about why you're excited about this partnership and maybe what are the things you think investors might be missing about the benefits long term of being in business with Apple? Only F1 could the Super Bowl ad be filled with drama as always. only f1 could the super bowl ad be filled with drama as always All right, the other big thing that's happening in the U.S. this year is your Apple deal, which is co-commencing here with Australia coming up, I guess, in a weekend or two. all right the other big thing that's happening in the u.s this year is your apple deal which is co-commencing here with australia coming up i guess in a weekend or two There's been a lot of discussion about, you know, the monetization, the reach elements to it, what Apple brings to the sport. there's been a lot of discussion about you know the monetization the reach elements to it what apple brings to the sport Talk about why you're excited about this partnership and maybe what are the things you think investors might be missing about the benefits long term of being in business with Apple? talk about why you're excited about this partnership and maybe what are the things you think investors might be missing about the benefits long term of being in business with apple

Speaker 1: Yeah. first of all, I do wanna say thank you to ESPN for having a long six-year history with us and helping us to promote the sport, get it to where it is, so you can report that back. Yeah. first of all, I do wanna say thank you to ESPN for having a long six-year history with us and helping us to promote the sport, get it to where it is, so you can report that back. yeah first of all i do wanna say thank you to espn for having a long six-year history with us and helping us to promote the sport get it to where it is so you can report that back

Speaker 2: Yep. Yep. yep

Speaker 1: ... to your new bosses. ... to your new bosses. to your new bosses

Speaker 2: I'll get back to that. I'll get back to that. i'll get back to that

Speaker 1: But Apple, look, I think we all know sort of the distribution landscape in media, in sports media, has been changing literally every single day over the past 15 years. What we saw was an opportunity with Apple to really go big in this space. To your point, people will question it, and people have questioned it. We feel very confident in sort of this relationship. Apple, in our minds, brings a lot to the table in this construct. It's not just sort of Apple TV, it is sorta Apple Music, Apple News, the Apple Store. Just like we talked about Cadillac earlier, you know, they have similar sort of touch points that go well beyond what you think about from a traditional television standpoint to a traditional video standpoint. But Apple, look, I think we all know sort of the distribution landscape in media, in sports media, has been changing literally every single day over the past 15 years. but apple look i think we all know sort of the distribution landscape in media in sports media has been changing literally every single day over the past 15 years What we saw was an opportunity with Apple to really go big in this space. what we saw was an opportunity with apple to really go big in this space To your point, people will question it, and people have questioned it. to your point people will question it and people have questioned it We feel very confident in sort of this relationship. we feel very confident in sort of this relationship Apple, in our minds, brings a lot to the table in this construct. apple in our minds brings a lot to the table in this construct It's not just sort of Apple TV, it is sorta Apple Music, Apple News, the Apple Store. it's not just sort of apple tv it is sorta apple music apple news the apple store Just like we talked about Cadillac earlier, you know, they have similar sort of touch points that go well beyond what you think about from a traditional television standpoint to a traditional video standpoint. just like we talked about cadillac earlier you know they have similar sort of touch points that go well beyond what you think about from a traditional television standpoint to a traditional video standpoint We don't focus on reach in sort of, an archaic definition of sort of how many people are watching it on TV, but really how do you touch your fans? How do you engage with your fans? I think as we will see over the next sort of five years, the product should develop. Maybe not so much the 1st year. We don't focus on reach in sort of, an archaic definition of sort of how many people are watching it on TV, but really how do you touch your fans? we don't focus on reach in sort of an archaic definition of sort of how many people are watching it on tv but really how do you touch your fans How do you engage with your fans? how do you engage with your fans I think as we will see over the next sort of five years, the product should develop. i think as we will see over the next sort of five years the product should develop Maybe not so much the 1st year. maybe not so much the 1st year

Speaker 2: Yeah. Yeah. yeah

Speaker 1: As they put their engineers to task and they think about what they can do with F1, we will see, I think, a lot of cool stuff come out. Look, you know, the Apple movie-. As they put their engineers to task and they think about what they can do with F1, we will see, I think, a lot of cool stuff come out. as they put their engineers to task and they think about what they can do with f1 we will see i think a lot of cool stuff come out Look, you know, the Apple movie-. look you know the apple movie-

Speaker 2: Yeah Yeah yeah

Speaker 1: ... right? This past summer, or last summer, the Apple movie, which grossed over $600 million, right? The biggest sports movie of all time. Brad Pitt's biggest movie of all time. What that did for F1, I think Apple will continue to look for ways to do that sort of... Just yesterday, they had on, you know, right by your offices in, what is it, 1575 Broadway? ... right? right This past summer, or last summer, the Apple movie, which grossed over $600 million, right? this past summer or last summer the apple movie which grossed over $600 million right The biggest sports movie of all time. the biggest sports movie of all time Brad Pitt's biggest movie of all time. brad pitt's biggest movie of all time What that did for F1, I think Apple will continue to look for ways to do that sort of... what that did for f1 i think apple will continue to look for ways to do that sort of Just yesterday, they had on, you know, right by your offices in, what is it, 1575 Broadway? just yesterday they had on you know right by your offices in what is it 1575 broadway

Speaker 2: 1585. 1585. 1585

Speaker 1: 1585 Broadway, right? The F1 on that screen, the cars going right past you. They are committing tons of support, effort, promotional value into this relationship. I think you also saw recently Apple did a deal with IMAX theaters to distribute the races into certain races into those theaters. Just last week, did a deal with Netflix- 1585 Broadway, right? 1585 broadway right The F1 on that screen, the cars going right past you. the f1 on that screen the cars going right past you They are committing tons of support, effort, promotional value into this relationship. they are committing tons of support effort promotional value into this relationship I think you also saw recently Apple did a deal with IMAX theaters to distribute the races into certain races into those theaters. i think you also saw recently apple did a deal with imax theaters to distribute the races into certain races into those theaters Just last week, did a deal with Netflix- just last week did a deal with netflix-

Speaker 2: Yep. Yep. yep

Speaker 1: where Apple will stream season eight of Drive to Survive. Netflix will broadcast the Canadian Grand Prix this year alongside Apple. You know, two huge platforms coming together to promote F1. where Apple will stream season eight of Drive to Survive. where apple will stream season eight of drive to survive Netflix will broadcast the Canadian Grand Prix this year alongside Apple. netflix will broadcast the canadian grand prix this year alongside apple You know, two huge platforms coming together to promote F1. you know two huge platforms coming together to promote f1

Speaker 2: Yeah Yeah yeah

Speaker 1: ... at the end of the day, which is phenomenal for us, right? I think when you think about, you know, the, the start of your question, one of the things we saw in doing a deal with Apple is that they're operating in a different space than traditional broadcasters. ... at the end of the day, which is phenomenal for us, right? at the end of the day which is phenomenal for us right I think when you think about, you know, the, the start of your question, one of the things we saw in doing a deal with Apple is that they're operating in a different space than traditional broadcasters. i think when you think about you know the the start of your question one of the things we saw in doing a deal with apple is that they're operating in a different space than traditional broadcasters

Speaker 2: Sure. Sure. sure

Speaker 1: Again, not to go back to ESPN, but if you think about it and having sat in this chair a long time ago at DirecTV, where I had to negotiate with all the broadcasters. Again, not to go back to ESPN, but if you think about it and having sat in this chair a long time ago at DirecTV, where I had to negotiate with all the broadcasters. again not to go back to espn but if you think about it and having sat in this chair a long time ago at directv where i had to negotiate with all the broadcasters

Speaker 2: Sure. Yeah. Sure. sure Yeah. yeah

Speaker 1: ... and the limitations I would put on them as part of the negotiation in terms of where they could broadcast, when they could broadcast, all that sort of stuff, would've put someone like ESPN in a much more restrictive position in terms of what they could do with F1 and our product, where Apple could go do that deal with Netflix. ... and the limitations I would put on them as part of the negotiation in terms of where they could broadcast, when they could broadcast, all that sort of stuff, would've put someone like ESPN in a much more restrictive position in terms of what they could do with F1 and our product, where Apple could go do that deal with Netflix. and the limitations i would put on them as part of the negotiation in terms of where they could broadcast when they could broadcast all that sort of stuff would've put someone like espn in a much more restrictive position in terms of what they could do with f1 and our product where apple could go do that deal with netflix

Speaker 2: Sure. Sure. sure

Speaker 1: I don't think you'd see that happening, for instance, with an ESPN, right? It opens up many new opportunities for Apple to promote F1 at the end of the day. I don't think you'd see that happening, for instance, with an ESPN, right? i don't think you'd see that happening for instance with an espn right It opens up many new opportunities for Apple to promote F1 at the end of the day. it opens up many new opportunities for apple to promote f1 at the end of the day

Speaker 2: What is the impact, if at all, on your direct-to-consumer strategy in the U.S.? F1 TV has been a really nice growth story globally, but particularly here. And I think... And I know that's changing at least the way consumers access it within the Apple ecosystem. How do we think about what that product does for the business and whether there's any change as a result of the Apple relationship? What is the impact, if at all, on your direct-to-consumer strategy in the U.S.? what is the impact if at all on your direct-to-consumer strategy in the u.s F1 TV has been a really nice growth story globally, but particularly here. f1 tv has been a really nice growth story globally but particularly here And I think... and i think And I know that's changing at least the way consumers access it within the Apple ecosystem. and i know that's changing at least the way consumers access it within the apple ecosystem How do we think about what that product does for the business and whether there's any change as a result of the Apple relationship? how do we think about what that product does for the business and whether there's any change as a result of the apple relationship

Speaker 1: I don't think with respect to that business it changes that much other than the way it's sold. As you said, access, right? It's gonna you're gonna get it through the Apple TV platform. You know, for people last year, who depending on what level of service you had, it's probably, you know, a $2 increase or even a $4 decrease from having the standalone F1 product. We don't feel that there's, you know, a huge economic difference on that. Most importantly, F1 TV continues to exist. It's just how it's sold. I don't think with respect to that business it changes that much other than the way it's sold. i don't think with respect to that business it changes that much other than the way it's sold As you said, access, right? as you said access right It's gonna you're gonna get it through the Apple TV platform. it's gonna you're gonna get it through the apple tv platform You know, for people last year, who depending on what level of service you had, it's probably, you know, a $2 increase or even a $4 decrease from having the standalone F1 product. you know for people last year who depending on what level of service you had it's probably you know a $2 increase or even a $4 decrease from having the standalone f1 product We don't feel that there's, you know, a huge economic difference on that. we don't feel that there's you know a huge economic difference on that Most importantly, F1 TV continues to exist. most importantly f1 tv continues to exist It's just how it's sold. it's just how it's sold

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Also means we continue to get data from that product, and that feeds into, as you were saying earlier, our sort of our understanding of our consumer, of our fans. In addition to sort of what they view on F1 TV, what merch they're buying, what tickets they're buying, all that sort of stuff feeds into, "Hey, this is what we know about our fans," which we can, you know, A, understand better, monetize ourselves, serve them better with product and whatever it is. Also for our partners, whether they're sponsors, you know, media partners, whatever it is, give them that information. Also means we continue to get data from that product, and that feeds into, as you were saying earlier, our sort of our understanding of our consumer, of our fans. also means we continue to get data from that product and that feeds into as you were saying earlier our sort of our understanding of our consumer of our fans In addition to sort of what they view on F1 TV, what merch they're buying, what tickets they're buying, all that sort of stuff feeds into, "Hey, this is what we know about our fans," which we can, you know, A, understand better, monetize ourselves, serve them better with product and whatever it is. in addition to sort of what they view on f1 tv what merch they're buying what tickets they're buying all that sort of stuff feeds into "hey this is what we know about our fans," which we can you know a understand better monetize ourselves serve them better with product and whatever it is Also for our partners, whether they're sponsors, you know, media partners, whatever it is, give them that information. also for our partners whether they're sponsors you know media partners whatever it is give them that information

Speaker 2: Mm-hmm Mm-hmm mm-hmm

Speaker 1: ... in a way that is helpful to them, which then brings more value to us because of what they pay us or whatever it is. ... in a way that is helpful to them, which then brings more value to us because of what they pay us or whatever it is. in a way that is helpful to them which then brings more value to us because of what they pay us or whatever it is

Speaker 2: You know, you mentioned Drive to Survive before. Obviously, that's been a huge part of F1's rise in popularity around the world. You had the F1 movie. Now we're seeing this sort of innovation and evolution of content for the company with Netflix, et cetera. How do you think about content and storytelling just as a continued growth driver for sports, F1 and maybe even for MotoGP over time? You know, you mentioned Drive to Survive before. you know you mentioned drive to survive before Obviously, that's been a huge part of F1's rise in popularity around the world. obviously that's been a huge part of f1's rise in popularity around the world You had the F1 movie. you had the f1 movie Now we're seeing this sort of innovation and evolution of content for the company with Netflix, et cetera. now we're seeing this sort of innovation and evolution of content for the company with netflix et cetera How do you think about content and storytelling just as a continued growth driver for sports, F1 and maybe even for MotoGP over time? how do you think about content and storytelling just as a continued growth driver for sports f1 and maybe even for motogp over time

Speaker 1: Yeah. I think one stat that's important is 60% of our fans, you know, access F1 on a daily basis, right? Whatever that is, reading articles, social media, or watching Instagram of someone's dog or whatever it is, one of the driver's dogs, right? Whatever it is, they're accessing it, which means those people are not just waiting for the race to be broadcast on Sunday. What that says is, "Hey, content is important. Storytelling is important. Yeah. yeah I think one stat that's important is 60% of our fans, you know, access F1 on a daily basis, right? i think one stat that's important is 60% of our fans you know access f1 on a daily basis right Whatever that is, reading articles, social media, or watching Instagram of someone's dog or whatever it is, one of the driver's dogs, right? whatever that is reading articles social media or watching instagram of someone's dog or whatever it is one of the driver's dogs right Whatever it is, they're accessing it, which means those people are not just waiting for the race to be broadcast on Sunday. whatever it is they're accessing it which means those people are not just waiting for the race to be broadcast on sunday What that says is, "Hey, content is important. what that says is "hey content is important Storytelling is important. storytelling is important

Speaker 2: Yeah. Yeah. yeah

Speaker 1: All of that is important because it's what feeds the machine. At the end of the day, it's not just what happens on Sunday. Sunday is exciting, but it's all this other stuff. That also gets us into sort of segmentation of sort of the fan base, right? You've got hardcore fans. You also have casual fans. You have fans who are interested in, you know, the, the testing. Like Ben, you're an expert now, right? You're watching the testing. You know, you may have fans that don't even watch much of the race, but they're engaging in so many different ways because they're watching the movie or you know, they're just watching short-form content on social media of, you know, Lando eating dinner, whatever it is. Content, storytelling, all of that is critical to the brand. All of that is important because it's what feeds the machine. all of that is important because it's what feeds the machine At the end of the day, it's not just what happens on Sunday. at the end of the day it's not just what happens on sunday Sunday is exciting, but it's all this other stuff. sunday is exciting but it's all this other stuff That also gets us into sort of segmentation of sort of the fan base, right? that also gets us into sort of segmentation of sort of the fan base right You've got hardcore fans. you've got hardcore fans You also have casual fans. you also have casual fans You have fans who are interested in, you know, the, the testing. you have fans who are interested in you know the the testing Like Ben, you're an expert now, right? like ben you're an expert now right You're watching the testing. you're watching the testing You know, you may have fans that don't even watch much of the race, but they're engaging in so many different ways because they're watching the movie or you know, they're just watching short-form content on social media of, you know, Lando eating dinner, whatever it is. you know you may have fans that don't even watch much of the race but they're engaging in so many different ways because they're watching the movie or you know they're just watching short-form content on social media of you know lando eating dinner whatever it is Content, storytelling, all of that is critical to the brand. content storytelling all of that is critical to the brand

Speaker 2: Got it. I did wanna ask you mentioned earlier you've had a number of media rights renewals outside the U.S. That's a market investors generally have a little less visibility into. Can you talk a little bit, at least even qualitatively, about sort of the growth you're seeing, in your international renewals since every market is kind of unique? Got it. got it I did wanna ask you mentioned earlier you've had a number of media rights renewals outside the U.S. i did wanna ask you mentioned earlier you've had a number of media rights renewals outside the u.s That's a market investors generally have a little less visibility into. that's a market investors generally have a little less visibility into Can you talk a little bit, at least even qualitatively, about sort of the growth you're seeing, in your international renewals since every market is kind of unique? can you talk a little bit at least even qualitatively about sort of the growth you're seeing in your international renewals since every market is kind of unique

Speaker 1: Yeah. What you've seen is, you know, in certain markets. You know, we've just renewed with Foxtel, so that's an existing partner that we're continuing to do business with. In other markets where we might have gone in a different direction. Yeah. yeah What you've seen is, you know, in certain markets. what you've seen is you know in certain markets You know, we've just renewed with Foxtel, so that's an existing partner that we're continuing to do business with. you know we've just renewed with foxtel so that's an existing partner that we're continuing to do business with In other markets where we might have gone in a different direction. in other markets where we might have gone in a different direction

Speaker 2: Yeah Yeah yeah

Speaker 1: ... you're actually seeing you know, the traditional, you know, heavyweight broadcasters in some of these markets come back to us or start new with us because they've seen what the growth of F1 is. Globo in Brazil- ... you're actually seeing you know, the traditional, you know, heavyweight broadcasters in some of these markets come back to us or start new with us because they've seen what the growth of F1 is. you're actually seeing you know the traditional you know heavyweight broadcasters in some of these markets come back to us or start new with us because they've seen what the growth of f1 is Globo in Brazil- globo in brazil-

Speaker 2: Right Right right

Speaker 1: like everyone knows that. Televisa in Mexico, right? Fuji in Japan. like everyone knows that. like everyone knows that Televisa in Mexico, right? televisa in mexico right Fuji in Japan. fuji in japan

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Right? These are the heavyweights. Them seeing that value and them wanting our product, our races, our content is really a big demonstration to me of what we've done on this front. Right? right These are the heavyweights. these are the heavyweights Them seeing that value and them wanting our product, our races, our content is really a big demonstration to me of what we've done on this front. them seeing that value and them wanting our product our races our content is really a big demonstration to me of what we've done on this front

Speaker 2: Okay. You mentioned earlier sponsorship, new categories, different tiers. I think the probably the popular view out there is that's still your highest growth opportunity was on a percentage basis of your major revenue streams. Do you see continued long runway in sponsorship for the business? Okay. okay You mentioned earlier sponsorship, new categories, different tiers. you mentioned earlier sponsorship new categories different tiers I think the probably the popular view out there is that's still your highest growth opportunity was on a percentage basis of your major revenue streams. i think the probably the popular view out there is that's still your highest growth opportunity was on a percentage basis of your major revenue streams Do you see continued long runway in sponsorship for the business? do you see continued long runway in sponsorship for the business

Speaker 1: Yeah. I mean, when I talk to Stefano, he's as pumped as ever. Yeah. yeah I mean, when I talk to Stefano, he's as pumped as ever. i mean when i talk to stefano he's as pumped as ever

Speaker 2: Yeah. Yeah. yeah

Speaker 1: So I think- So I think- so i think-

Speaker 2: I can hear that. I can hear that. i can hear that

Speaker 1: ... he, his team, that's a very, very creative group of people. ... he, his team, that's a very, very creative group of people. he his team that's a very very creative group of people

Speaker 2: Yeah. Yeah. yeah

Speaker 1: What they've been able to do. I get calls all the time from other leagues because as you might imagine, given my career- What they've been able to do. what they've been able to do I get calls all the time from other leagues because as you might imagine, given my career- i get calls all the time from other leagues because as you might imagine given my career-

Speaker 2: New people. New people. new people

Speaker 1: ... pretty well-traveled at this point. You know, say, "Hey, how did you do that? How do you do that on hospitality? How do you do that on sponsorship? How'd you come up with that creative idea?" That also tells me, hey, we're doing the right stuff, and I think that creative engine continuing and will continue to lead to successful sort of growth for us. ... pretty well-traveled at this point. pretty well-traveled at this point You know, say, "Hey, how did you do that? you know say "hey how did you do that How do you do that on hospitality? how do you do that on hospitality How do you do that on sponsorship? how do you do that on sponsorship How'd you come up with that creative idea?" That also tells me, hey, we're doing the right stuff, and I think that creative engine continuing and will continue to lead to successful sort of growth for us. how'd you come up with that creative idea?" that also tells me hey we're doing the right stuff and i think that creative engine continuing and will continue to lead to successful sort of growth for us

Speaker 2: Okay. You guys had your third Las Vegas Grand Prix back in November. Sounds like it was a success, you know, financially. Can you talk a little bit about kinda where that race is, what the long-term vision for that business is, and if you think it continues to be a driver of sort of value for the company over the next couple years? Okay. okay You guys had your third Las Vegas Grand Prix back in November. you guys had your third las vegas grand prix back in november Sounds like it was a success, you know, financially. sounds like it was a success you know financially can Can you talk a little bit about kinda where that race is, what the long-term vision for that business is, and if you think it continues to be a driver of sort of value for the company over the next couple years? can you talk a little bit about kinda where that race is what the long-term vision for that business is and if you think it continues to be a driver of sort of value for the company over the next couple years

Speaker 1: Yeah. If you go back to before we started Vegas, I think there were. You know, we were taking on a lot. Yeah. yeah If you go back to before we started Vegas, I think there were. if you go back to before we started vegas i think there were You know, we were taking on a lot. you know we were taking on a lot

Speaker 2: Yeah. Yeah. yeah

Speaker 1: I think we all recognized it was probably gonna be a bumpy road, but, you know, the reward at the end of all of it was gonna be there. Even though we're not anywhere near the end, even three years later, we've seen that pan out, right? First few years just operationally. I think we all recognized it was probably gonna be a bumpy road, but, you know, the reward at the end of all of it was gonna be there. i think we all recognized it was probably gonna be a bumpy road but you know the reward at the end of all of it was gonna be there Even though we're not anywhere near the end, even three years later, we've seen that pan out, right? even though we're not anywhere near the end even three years later we've seen that pan out right First few years just operationally. first few years just operationally

Speaker 2: Yeah Yeah yeah

Speaker 1: ... getting that right and probably spending in places just because you had to get the race going that evening. Our relations with the community, probably not great off the start, right? You think about it, a new race in your city, shutting down the streets for three nights or whatever it is, not a great look. ... getting that right and probably spending in places just because you had to get the race going that evening. getting that right and probably spending in places just because you had to get the race going that evening Our relations with the community, probably not great off the start, right? our relations with the community probably not great off the start right You think about it, a new race in your city, shutting down the streets for three nights or whatever it is, not a great look. you think about it a new race in your city shutting down the streets for three nights or whatever it is not a great look

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Now, three years later, you've seen our community relations, our local relations probably in as good a spot as ever. You know, people in Vegas take pride in the fact that the race is there now. That, I think, has allowed us to work much more collaboratively with the local governments, with our local partners, right, the casinos, to actually start thinking about really what this can become in the future and not, hey, complaining about the fact that we did this wrong or they did that wrong or, you know, that sort of stuff, which over the first two years you probably had that. Hopefully through the growing pains and now thinking about what the future can hold. Now, three years later, you've seen our community relations, our local relations probably in as good a spot as ever. now three years later you've seen our community relations our local relations probably in as good a spot as ever You know, people in Vegas take pride in the fact that the race is there now. you know people in vegas take pride in the fact that the race is there now That, I think, has allowed us to work much more collaboratively with the local governments, with our local partners, right, the casinos, to actually start thinking about really what this can become in the future and not, hey, complaining about the fact that we did this wrong or they did that wrong or, you know, that sort of stuff, which over the first two years you probably had that. that i think has allowed us to work much more collaboratively with the local governments with our local partners right the casinos to actually start thinking about really what this can become in the future and not hey complaining about the fact that we did this wrong or they did that wrong or you know that sort of stuff which over the first two years you probably had that Hopefully through the growing pains and now thinking about what the future can hold. hopefully through the growing pains and now thinking about what the future can hold We are working very closely with all of them to figure out how do we make the race better, how do we present it better, how do we help casinos sell, how do they help us, drive fans, and all that sort of stuff, which is a pretty cool place to be. I think that, you know, one of your points is what does this mean for F1? It means a ton. We are working very closely with all of them to figure out how do we make the race better, how do we present it better, how do we help casinos sell, how do they help us, drive fans, and all that sort of stuff, which is a pretty cool place to be. we are working very closely with all of them to figure out how do we make the race better how do we present it better how do we help casinos sell how do they help us drive fans and all that sort of stuff which is a pretty cool place to be I think that, you know, one of your points is what does this mean for F1? i think that you know one of your points is what does this mean for f1 It means a ton. it means a ton

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Right? I think most visibly, sort of the impact in the U.S. Right? right I think most visibly, sort of the impact in the U.S. i think most visibly sort of the impact in the u.s

Speaker 2: Yeah Yeah yeah

Speaker 1: ... and what Vegas has meant. It's been the third race, but, you know, I think people look at it and they're like, "Oh my God, you know, three races now, Vegas, Miami, Austin, this is a critical piece of that strategy." The other thing that you've seen, one of the reasons that we made this investment as opposed to licensing it to someone else was sort of speed to market and getting it done in our own way. We were able to do that, and I think that turned on, we talked about sponsorship earlier, a few different sponsors that sort of engaged with us because we had Vegas and now have gone, say, global with us. Amex is a, is a great example of that. ... and what Vegas has meant. and what vegas has meant It's been the third race, but, you know, I think people look at it and they're like, "Oh my God, you know, three races now, Vegas, Miami, Austin, this is a critical piece of that strategy." The other thing that you've seen, one of the reasons that we made this investment as opposed to licensing it to someone else was sort of speed to market and getting it done in our own way. it's been the third race but you know i think people look at it and they're like "oh my god you know three races now vegas miami austin this is a critical piece of that strategy." the other thing that you've seen one of the reasons that we made this investment as opposed to licensing it to someone else was sort of speed to market and getting it done in our own way We were able to do that, and I think that turned on, we talked about sponsorship earlier, a few different sponsors that sort of engaged with us because we had Vegas and now have gone, say, global with us. we were able to do that and i think that turned on we talked about sponsorship earlier a few different sponsors that sort of engaged with us because we had vegas and now have gone say global with us Amex is a, is a great example of that. amex is a is a great example of that What Vegas has done to sort of burnish the brand around the world globally is sort of a huge impact that doesn't always show up, you know, in the direct Vegas P&L. What Vegas has done to sort of burnish the brand around the world globally is sort of a huge impact that doesn't always show up, you know, in the direct Vegas P&L. what vegas has done to sort of burnish the brand around the world globally is sort of a huge impact that doesn't always show up you know in the direct vegas p&l

Speaker 2: Yeah. I mean, given those benefits, would it make sense to self-promote, so to speak, in other markets? Is this really a unique situation given the U.S. and Vegas? Yeah. yeah I mean, given those benefits, would it make sense to self-promote, so to speak, in other markets? i mean given those benefits would it make sense to self-promote so to speak in other markets Is this really a unique situation given the U.S. and Vegas? is this really a unique situation given the u.s and vegas

Speaker 1: Yeah. I think it's pretty unique. Yeah. yeah I think it's pretty unique. i think it's pretty unique

Speaker 2: Yeah Yeah yeah

Speaker 1: ... just because we're operating in a jurisdiction where we actually have familiarity. ... just because we're operating in a jurisdiction where we actually have familiarity. just because we're operating in a jurisdiction where we actually have familiarity

Speaker 2: Yeah. Yeah. yeah

Speaker 1: I think there was reason why Vegas itself was critical to our strategy, and I just elaborated as to why. I wouldn't say we wouldn't do it somewhere else, but stars would have to align in a way that made sense for us to do it versus sort of, you know, several other people who are now clamoring to get in with races in different locations. I think there was reason why Vegas itself was critical to our strategy, and I just elaborated as to why. i think there was reason why vegas itself was critical to our strategy and i just elaborated as to why I wouldn't say we wouldn't do it somewhere else, but stars would have to align in a way that made sense for us to do it versus sort of, you know, several other people who are now clamoring to get in with races in different locations. i wouldn't say we wouldn't do it somewhere else but stars would have to align in a way that made sense for us to do it versus sort of you know several other people who are now clamoring to get in with races in different locations

Speaker 2: Okay. Last F1 question, and we'll turn to MotoGP. You've got the Concorde Agreement now done that runs through 2030, so you have line of sight on all the pieces of your relationship with the teams. What should investors understand about the, in particular, the team payment structure and sort of the operating leverage that the business can see over the course of the five years? Okay. okay Last F1 question, and we'll turn to MotoGP. last f1 question and we'll turn to motogp You've got the Concorde Agreement now done that runs through 2030, so you have line of sight on all the pieces of your relationship with the teams. you've got the concorde agreement now done that runs through 2030 so you have line of sight on all the pieces of your relationship with the teams What should investors understand about the, in particular, the team payment structure and sort of the operating leverage that the business can see over the course of the five years? what should investors understand about the in particular the team payment structure and sort of the operating leverage that the business can see over the course of the five years

Speaker 1: Yeah, I think what we said recently is we see about 200 basis points in 2026 and then stable sort of after that. I think the best part about the Concorde Agreement is a continuation of an arrangement with all the people in the ecosystem that matter for another five years. We have, you know, the operating parameters of how we work together over the next five years. If you go back 10 years to when Liberty bought F1 and the state of the relationships with, you know, F1 and the promoters, F1 and the teams, not good. Not good at all. Yeah, I think what we said recently is we see about 200 basis points in 2026 and then stable sort of after that. yeah i think what we said recently is we see about 200 basis points in 2026 and then stable sort of after that I think the best part about the Concorde Agreement is a continuation of an arrangement with all the people in the ecosystem that matter for another five years. i think the best part about the concorde agreement is a continuation of an arrangement with all the people in the ecosystem that matter for another five years We have, you know, the operating parameters of how we work together over the next five years. we have you know the operating parameters of how we work together over the next five years If you go back 10 years to when Liberty bought F1 and the state of the relationships with, you know, F1 and the promoters, F1 and the teams, not good. if you go back 10 years to when liberty bought f1 and the state of the relationships with you know f1 and the promoters f1 and the teams not good Not good at all. not good at all

Speaker 2: Right. Right. right

Speaker 1: I think a large part of the success most recently has been the fact that the level of trust that exists now between us and the teams is significantly different than what it was, you know, 10 years ago. Now we come together and think about collaborating on stuff, not what are you trying to take from me versus, you know, him and why does he get that. I think you've seen it play out. You know, Drive to Survive, the first season, Ferrari and Mercedes. I think a large part of the success most recently has been the fact that the level of trust that exists now between us and the teams is significantly different than what it was, you know, 10 years ago. i think a large part of the success most recently has been the fact that the level of trust that exists now between us and the teams is significantly different than what it was you know 10 years ago Now we come together and think about collaborating on stuff, not what are you trying to take from me versus, you know, him and why does he get that. now we come together and think about collaborating on stuff not what are you trying to take from me versus you know him and why does he get that I think you've seen it play out. i think you've seen it play out You know, Drive to Survive, the first season, Ferrari and Mercedes. you know drive to survive the first season ferrari and mercedes

Speaker 2: Right. Who are not there. Right. right Who are not there. who are not there

Speaker 1: ... were not there. ... were not there. were not there

Speaker 2: Forgot about that. Forgot about that. forgot about that

Speaker 1: Right? Right? right

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Now you do these different projects, whether it's Disney or Lego and things like that, where you need everyone to participate, and you see them all sort of coming to the table. Yeah, we still squabble on stuff, but, you know, it's all small relative to the fact that everyone's gotten religion around the fact that if we can work together, the whole pie grows and everyone benefits. Now you do these different projects, whether it's Disney or Lego and things like that, where you need everyone to participate, and you see them all sort of coming to the table. now you do these different projects whether it's disney or lego and things like that where you need everyone to participate and you see them all sort of coming to the table Yeah, we still squabble on stuff, but, you know, it's all small relative to the fact that everyone's gotten religion around the fact that if we can work together, the whole pie grows and everyone benefits. yeah we still squabble on stuff but you know it's all small relative to the fact that everyone's gotten religion around the fact that if we can work together the whole pie grows and everyone benefits

Speaker 2: Yeah. Well, the team values have definitely grown. Yeah. yeah Well, the team values have definitely grown. well the team values have definitely grown

Speaker 1: They have. They have. they have

Speaker 2: All right, let's talk about MotoGP. You closed that deal last summer. How would you say the business is performing versus your kind of initial underwriting plan? Any surprises, good or bad, that we should be aware of at this point? All right, let's talk about MotoGP. all right let's talk about motogp You closed that deal last summer. you closed that deal last summer How would you say the business is performing versus your kind of initial underwriting plan? how would you say the business is performing versus your kind of initial underwriting plan Any surprises, good or bad, that we should be aware of at this point? any surprises good or bad that we should be aware of at this point

Speaker 1: Yeah. We're still, you know, getting into it, but I think coming away with our initial impressions as, you know, very, very excited to have this business. Yeah. yeah We're still, you know, getting into it, but I think coming away with our initial impressions as, you know, very, very excited to have this business. we're still you know getting into it but i think coming away with our initial impressions as you know very very excited to have this business

Speaker 2: Yeah. Yeah. yeah

Speaker 1: There aren't many businesses like this. you know, you go to a couple of these races and you understand sort of the passion that is there. You also understand just the sport itself and sort of the emotion that it evokes because it is so sort of raw and dangerous, and that is what that brand, I think, will be. I think from a business commercialization standpoint, it's gonna be a bit of a build. You know, we've talked about that, which is, hey, we gotta build the pieces to this. I don't think there's fundamentally anything to the sport per se and huge investment that way. It's building out, you know, the team and people with the requisite skills in terms of building brands, commercializing, the enterprise. That's all sort of doable in our minds. It will take some time. There aren't many businesses like this. you know, you go to a couple of these races and you understand sort of the passion that is there. there aren't many businesses like this you know you go to a couple of these races and you understand sort of the passion that is there You also understand just the sport itself and sort of the emotion that it evokes because it is so sort of raw and dangerous, and that is what that brand, I think, will be. you also understand just the sport itself and sort of the emotion that it evokes because it is so sort of raw and dangerous and that is what that brand i think will be I think from a business commercialization standpoint, it's gonna be a bit of a build. i think from a business commercialization standpoint it's gonna be a bit of a build You know, we've talked about that, which is, hey, we gotta build the pieces to this. you know we've talked about that which is hey we gotta build the pieces to this I don't think there's fundamentally anything to the sport per se and huge investment that way. i don't think there's fundamentally anything to the sport per se and huge investment that way It's building out, you know, the team and people with the requisite skills in terms of building brands, commercializing, the enterprise. it's building out you know the team and people with the requisite skills in terms of building brands commercializing the enterprise That's all sort of doable in our minds. It will take some time. that's all sort of doable in our minds. it will take some time It probably will be a little bit choppy. You know, as we start to look towards 2027, in 2027 we start to see some of the rise in sort of promoters as we have struck new deals, and those will start to flow in, I think, in 2027. We're already having, you know, engaged conversations on the media front with respect to renewals that we have, our deals that are gonna come up. Then, you know, on sponsorship, it is still predominantly endemic sponsors. It probably will be a little bit choppy. it probably will be a little bit choppy You know, as we start to look towards 2027, in 2027 we start to see some of the rise in sort of promoters as we have struck new deals, and those will start to flow in, I think, in 2027. you know as we start to look towards 2027 in 2027 we start to see some of the rise in sort of promoters as we have struck new deals and those will start to flow in i think in 2027 We're already having, you know, engaged conversations on the media front with respect to renewals that we have, our deals that are gonna come up. we're already having you know engaged conversations on the media front with respect to renewals that we have our deals that are gonna come up Then, you know, on sponsorship, it is still predominantly endemic sponsors. then you know on sponsorship it is still predominantly endemic sponsors

Speaker 2: Yeah. Yeah. yeah

Speaker 1: That's gonna be an area of opportunity. As we sort of, again, build that brand, and then monetize against it, we'll see sort of more general sponsors come in. I think an important thing here is it is an amazing sport and an amazing brand with a long history. There are a lot of stories to be told. We just need to tell it to more people. That's gonna be an area of opportunity. that's gonna be an area of opportunity As we sort of, again, build that brand, and then monetize against it, we'll see sort of more general sponsors come in. as we sort of again build that brand and then monetize against it we'll see sort of more general sponsors come in I think an important thing here is it is an amazing sport and an amazing brand with a long history. i think an important thing here is it is an amazing sport and an amazing brand with a long history There are a lot of stories to be told. there are a lot of stories to be told We just need to tell it to more people. we just need to tell it to more people

Speaker 2: Sure. Sure. sure

Speaker 1: We will build that audience, and we will build that fan engagement. We will build that audience, and we will build that fan engagement. we will build that audience and we will build that fan engagement

Speaker 2: To that end, you've got your team deal up, I think at the end of 2026 with the MotoGP teams. What are your main objectives? What are you trying to get out of that renewal to help, you know, realize the opportunity? To that end, you've got your team deal up, I think at the end of 2026 with the MotoGP teams. to that end you've got your team deal up i think at the end of 2026 with the motogp teams What are your main objectives? what are your main objectives What are you trying to get out of that renewal to help, you know, realize the opportunity? what are you trying to get out of that renewal to help you know realize the opportunity

Speaker 1: I think we're close to getting that done. I think we're close to getting that done. i think we're close to getting that done

Speaker 2: Okay. Okay. okay

Speaker 1: I think what we're trying to do there is sort of build a construct with those teams where people, again, have a similar level of trust with each other, understand that, you know, we're all in this to build the business. I think we will get there. I think there's opportunity that is playing out on the team side. you know, Tech3 was sold recently to a group led by David Blitzer, Main Street Advisors. Look, these are people that understand sport as an entertainment asset and the fact that you actually need to invest. I think what we're trying to do there is sort of build a construct with those teams where people, again, have a similar level of trust with each other, understand that, you know, we're all in this to build the business. i think what we're trying to do there is sort of build a construct with those teams where people again have a similar level of trust with each other understand that you know we're all in this to build the business I think we will get there. i think we will get there I think there's opportunity that is playing out on the team side. you know, Tech3 was sold recently to a group led by David Blitzer, Main Street Advisors. i think there's opportunity that is playing out on the team side you know tech3 was sold recently to a group led by david blitzer main street advisors Look, these are people that understand sport as an entertainment asset and the fact that you actually need to invest. look these are people that understand sport as an entertainment asset and the fact that you actually need to invest

Speaker 2: Yeah. Yeah. yeah

Speaker 1: I know a couple other teams may sort of have new investors come in at some point, and what we're looking for is those investors to have a similar mindset to us. Again, how do we invest and build this sport together? I think you'll see sort of a lot of success over, you know, several year period once that happens. I know a couple other teams may sort of have new investors come in at some point, and what we're looking for is those investors to have a similar mindset to us. i know a couple other teams may sort of have new investors come in at some point and what we're looking for is those investors to have a similar mindset to us Again, how do we invest and build this sport together? again how do we invest and build this sport together I think you'll see sort of a lot of success over, you know, several year period once that happens. i think you'll see sort of a lot of success over you know several year period once that happens

Speaker 2: Okay. Maybe in the last couple minutes, Greg, Liberty always has, or not always, but certainly under the F1 MotoGP world, has a high-class problem of generating a lot of cash flow and deleveraging pretty rapidly. You guys, I don't think have a sort of formal leverage target anymore. Okay. okay Maybe in the last couple minutes, Greg, Liberty always has, or not always, but certainly under the F1 MotoGP world, has a high-class problem of generating a lot of cash flow and deleveraging pretty rapidly. maybe in the last couple minutes greg liberty always has or not always but certainly under the f1 motogp world has a high-class problem of generating a lot of cash flow and deleveraging pretty rapidly You guys, I don't think have a sort of formal leverage target anymore. you guys i don't think have a sort of formal leverage target anymore

Speaker 1: Yeah. Yeah. yeah

Speaker 2: How should your investors think about deploying capital, you know, over the next couple years as the balance sheet gets to be at a leverage level that's, you know, pretty, at least my words, conservative over the next few years? How should your investors think about deploying capital, you know, over the next couple years as the balance sheet gets to be at a leverage level that's, you know, pretty, at least my words, conservative over the next few years? how should your investors think about deploying capital you know over the next couple years as the balance sheet gets to be at a leverage level that's you know pretty at least my words conservative over the next few years

Speaker 1: Sure. I think we talked about this at the beginning, but, we are deleveraging. To your point, hopefully we'd be at a point relatively soon where you'd say, "Hey, how are you investing your capital? Sure. sure I think we talked about this at the beginning, but, we are deleveraging. i think we talked about this at the beginning but we are deleveraging To your point, hopefully we'd be at a point relatively soon where you'd say, "Hey, how are you investing your capital? to your point hopefully we'd be at a point relatively soon where you'd say "hey how are you investing your capital

Speaker 2: Yes. Yes. yes

Speaker 1: I think what we talked about is we would like to invest in growth in our businesses, growth alongside our businesses, you know, similar types of businesses. You know, kinda what I was talking about earlier. Then, you know, maintaining sort of that disciplined approach to it, trying to leverage off of what Liberty has done in the past, what it is now, our relationships, our ability to spot those sorts of opportunities, our ability to finance them creatively. But you know, we're also not gonna do sort of dumb deals. We also understand sort of what the expectations are, so we've gotta make sure that whatever we do, we have the ability to explain that properly to our investors. I think what we talked about is we would like to invest in growth in our businesses, growth alongside our businesses, you know, similar types of businesses. i think what we talked about is we would like to invest in growth in our businesses growth alongside our businesses you know similar types of businesses You know, kinda what I was talking about earlier. you know kinda what i was talking about earlier Then, you know, maintaining sort of that disciplined approach to it, trying to leverage off of what Liberty has done in the past, what it is now, our relationships, our ability to spot those sorts of opportunities, our ability to finance them creatively. then you know maintaining sort of that disciplined approach to it trying to leverage off of what liberty has done in the past what it is now our relationships our ability to spot those sorts of opportunities our ability to finance them creatively But you know, we're also not gonna do sort of dumb deals. but you know we're also not gonna do sort of dumb deals We also understand sort of what the expectations are, so we've gotta make sure that whatever we do, we have the ability to explain that properly to our investors. we also understand sort of what the expectations are so we've gotta make sure that whatever we do we have the ability to explain that properly to our investors I do feel like Liberty now, after what we did last year with a lot of the corporate maneuverings, the acquisition of MotoGP, the split off of Liberty Live at the end of the year, you know, we're in a good position. I do feel like Liberty now, after what we did last year with a lot of the corporate maneuverings, the acquisition of MotoGP, the split off of Liberty Live at the end of the year, you know, we're in a good position. i do feel like liberty now after what we did last year with a lot of the corporate maneuverings the acquisition of motogp the split off of liberty live at the end of the year you know we're in a good position

Speaker 2: Yeah. Yeah. yeah

Speaker 1: You talked about the financial strength, and I think we should use that. You talked about the financial strength, and I think we should use that. you talked about the financial strength and i think we should use that

Speaker 2: Okay. Well, we're out of time. Greg, thanks so much for coming. Good to see you. Okay. okay Well, we're out of time. well we're out of time Greg, thanks so much for coming. greg thanks so much for coming Good to see you. good to see you

Speaker 1: Thanks for having me. Thank you, everyone. Thanks for having me. thanks for having me Thank you, everyone. thank you everyone