Q3 2021 Liberty Media Corp Earnings Call
Ladies and gentlemen, thank you for standing by welcome to the Liberty Media Corporation 2021, Q3 earnings call.
During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session.
At that time, if you have a question. Please press star one on your telephone.
As a reminder, this conference is being recorded November 4th 2021.
I would now like to turn the conference over to Courtney Chang Chief portfolio Officer.
Please go ahead.
Thank you good morning, before we begin we'd like to remind everyone that this call includes certain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in Liberty media. Its most recent Form 10-K, and 10-Q are Liberty media.
Acquisitions form S. One registration statement filed with the SEC.
These forward looking statements speak only as of the date of this call and Liberty media and Liberty Media acquisition expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in liberty media.
Liberty Media acquisition corporations expectations with regard there to or any change in events conditions or circumstances on which any such statement is based on today's call. We will discuss certain non-GAAP financial measures for Liberty media, and Sirius XM, including adjusted OIBDA and adjusted EBITDA, the required definitions and reconciliations for Liberty media.
Media and Sirius XM schedules, one and two can be found at the end of the earnings press release issued today, which is available on Liberty Media's website now I'd like to turn the call over to Greg, Let's say Liberty's President and CEO.
According and good morning to all of you.
Today speaking on the call. We will also have formula one's president and CEO, Stefano Domenicali, and Liberty's, Chief accounting and principal financial Officer, Brian Wendling.
This quarter no surprise, we're going to start with the Braves World Champions for the first time since 1995.
I'm, Karen <unk>, and playing ball and in life.
A person occasionally gives us the opportunity do something great. When the time comes only two things matter.
When compared to seize the moment and.
Having the courage to take your best way.
Clearly the Braves did that and I want to thank Ted Turner for reminding us of that quote.
So congrats to our tremendous players to their performance the branch light.
Smith, among all the players have such well deserved admiration Alec.
Alexander <unk> with an excellent mid season trade and to the rest of our top quality Braves management team, Terry Mike and Derrick.
All of the Braves country most of all.
This was an excellent team effort, particularly in game six in Houston, starting with Soliris Ginormous 500 ish three run Homer and a third that cleared the train tracks and.
And Max free pitching the lights out despite getting stacked spiked in the first inning.
It was amazing comeback since the all star break when we were $44 45, and the team wisely invest in talent that trade deadline, which helped China season around and also generated a great financial performance.
As I said the financial performance of the team was as impressive as the on field performance.
Season to date baseball revenue per home game is up 11% compared to 2019 and retail per caps are up 33% versus 2019.
The Braves ended the season number two in major League baseball and regular attendance at $2 3 million. This is close to our historical average of two point forward, despite only reaching 100% capacity in may.
With our on field success.
Already sold thousands of new season ticket plans for the 2022 season.
The battery was booming throughout the playoffs.
And we estimate crowds were well in excess of 100000.
For each of our World series games very exciting.
So let me turn now to Liberty Sirius XM. This morning, we also had some good news going over 80% at Sirius XM through a tax free exchange and we now expect it to be an ATB accordingly, all future distributions from CRE will be tax free.
We did continue our share repurchases repurchasing 98 million across the as in the case from August through September excuse me through October <unk>.
Kept remains and we repurchased at a look through price <unk> of just over $4. We continue to take advantage of that discount.
We also sold our entire IR speak at an average price of $25 31 per share for after tax proceeds of $175 million.
The majority of which we sold after quarter end in October.
This was well timed.
We sold the stock for a 40% pretax gain.
This investment was intended to take an option an adjacent business.
But we like the hand, we haven't series and now have additional cash to fuel incremental buybacks.
Looking at Syria itself strong results for the quarter 616000 self pay net adds the highest quarterly figure ever recorded.
We obtained our full year guidance and nine months.
We also reported for the quarter, the highest revenue and EBITDA ever.
We have a continued focus on growing engagement outside the vehicle. Perhaps you saw are very entertaining Sirius XM Sirius XM House AD campaign.
And we have been driving impressive growth on the advertising platform with revenue up 31%.
We are back to producing live content and experiences will small where our small stage series and we hosted Dave Matthews Brandi Carlisle coal play and John Molina.
Further on content, we completed an investment in our content agreement audio App, which will create new original scripted podcast for the series platforms.
Turning briefly to live nation I'd noted reports later today, so I really can't comment on the results other than to say demand has endured as now being met with supply and.
And we are pleased with the equity performance up 43% year to date.
Turning to Formula One group.
Drilling season continues.
The lead for the drivers championship has gone back and forth between Max and Lewis.
Among the rest of the drivers there are tight competition across the grid.
And then the Constructors championship, Mercedes and Red Bull or fighting for first with Mclaren and Ferrari in a tight battle for third.
Fans are attending in tuning it we have never seen such a crowd in Austin for example, which set an F 110 red attendance record over the race weekend of the 400000 people that showed up in Austin, almost 70% were attending their first growing pre usually this figure is more like in the mid thirties.
Stefano will discuss in a moment reasonably results released results of <unk> survey in our demographic is skewing younger something few of the sports can claim.
We are already looking towards 2022 and have announced a 23 race calendar. We are excited to have our second race in the U S and welcome the Miami GP and May demand is high 275000 people pre registered to purchase tickets.
As compared to a planned capacity of around 80000.
800 people have placed a 5000 dollar deposit for luxury hospitality Paddock club and suite sold throughout they sold out the available inventory in the first day.
We've also sold through the available grandstand tickets in the first day.
Turning briefly to <unk>, we continue to review opportunities, we believe that changes in the stock market will ultimately be to liberty's benefit and with that I'd like to turn it over to Brian for more on our financial results.
Thank you Greg hard to follow that but we'll give it our best try and good morning, everyone Liberty Sirius XM group has attributed cash and liquid investments of approximately $165 million plus $50 million in public debt and equity securities at the corporate level. This excludes $164 million of cash held directly at Sirius XM.
Also have $1 1 billion of Undrawn margin loan capacity at the parent level.
Note that a portion of our cash will be used in early 2022 to repay our 225% live nation exchangeable bonds, we issued the redemption notice on these bonds just after the quarter.
Based on the fair value of the liability at quarter end the amount of cash used would be $532 million.
As of November three the value of our Sirius XM stock held at Liberty Siriusxm group pro forma for the exchange and announced today was almost 28 billion and the value of live nation stock held was $7 3 billion we.
We have $3 2 billion in principal amount of debt against these holdings.
Total Liberty Sirius XM group attributed principal amount of debt is $13 1 billion, which includes $8 9 billion of debt at Sirius XM.
As you saw in our earnings release, the Liberty Sirius XM group outstanding share count as of 10 31 pro forma for the exchange would have been 336 million shares.
Formula One group had attributed cash and liquid investments of $1 6 billion at quarter end, which excludes $585 million of cash at that point.
We have one group also had a $194 million of public debt and equity securities.
Formula One group attributed principal amount of debt was $3 4 billion, which includes $2 9 billion of debt at Epsilon, leaving $546 million at the corporate level.
<unk> $500 million revolver is undrawn.
In Formula one leverage at the end of the quarter was five six times very near our target range of 5% to five five times.
Note that we are still in a period of covenant waiver until March of 2022.
Please also note that beginning January one 2021 of one began reclassifying certain components previously reported another F. One revenue into primary F. One revenue.
Better align with the way it currently evaluating.
Sure.
Bonus reclassified into primary F. One revenue include F. One TV subscriptions up two and half three related fees broadcast origination and support fees and digital advertising among others additional detail included including the impact of the revenue reclassification for the years ended December 31, 19% and <unk> can be found in schedule III of our earned.
<unk> press release posted to our website.
At quarter end Braves group had attributed cash and liquid investments of $134 million, which excludes $83 million of restricted cash raise group had attributed principal amount of debt of 721 million.
Liberty and our consolidated subsidiaries are in compliance with our debt covenants at quarter end.
With that I'll turn it over to Stefano to discuss Formula one.
Thanks, Brian.
<unk> thousand 71 season continues to underline F. One position as the undisputed pinnacle of motor sport.
<unk> and the step them as still battling for the Chester.
With the lead going back and forth almost everybody's.
This continues to produce breathtaking moments such as the Monza, where are coming together, so Mexico and up on the top of Louise and in Austin, where we witness is a speed of debt raise to emerge ahead offset somewhat.
Tears bustle extend further down the field.
We continue to see valid phases of the program to include the <unk>, one and two for Mclaren month Chico finding these drive the verbal and so that is resilient to the pausing and such.
The consecutive championship, let's say this is managing so we've seen the slightly dilutive.
With the five for the third between Mcleod and surrounding even close.
We held our second screens event in London, which was again, whether we received and certainly impacted the assembly race outcome.
We will hold our third and final safety events in Brazil, and actively collecting feedback to make this police events, even better in 2022 as.
As restrictions have started to be easier we have seen the return of large throughout two hour basis. Many at capacity in the Butler plant is operating fully once again.
We were thrilled as four wall return to example for the first time since 1985.
The Orange Army came out in full force with <unk> and.
And the promoter over delivered in every aspect in Austin, we welcomed 140000, Sandy and set the new attendances Rachel with 400000 over the weekend, we finalized the 2021 calendar with cut that scene at the weekend of November $19 21.
Thereby creating the three rates run in the middle East to the end of 2021 season.
This agreement is part of a longer 10 year deals starting 2023 after kitab host the FIFA World Cup in 2022.
The drill and popularity of approval one has never been greater.
This is reinforced by a recently published in Nielsen them multiple survey covering 187 countries.
But disciplined identified that's exciting is formula one number one brand attribute with competitive and entertaining also making the top five for the first day. The central of response was the largest and most diverse ever with female participation doubling and the average age.
The decrease in full year 232.
We know we are moving in the right direction and engagement remained strong across all platforms on.
On the digital front unique users across the <unk> website and App. This year up 56% compared to 2020, social engagement continues to grow reaching nearly 35 million social interaction for the S&P five 2% higher than the last <unk> 2000.
19.
80 million social interaction for the 10 GB.
Number 400 watts.
The total number of those following <unk> on social media now stands at over 45 minutes.
<unk> tuning in and we have seen strong growth over 2020, and 2019 in many markets, notably, France, The Netherlands, Greece, Spain, Hungary, and the United States.
<unk> remains a great way for us to catch all the action of the race weekends.
Peak concurrent view four races days have consistently been more than two seven.
Seven times higher than 2020 season leverage we were excited to announce a 23 raise calendar for 2022.
It is a great mix of historic and new venues and we will welcome Miami, which will be our second lease in the United States.
We look forward to this calendar, which when paired with the new regulation and cause designed to create closer racing should produce another thing we.
We do hope that 2022 feels more normal than the last two years, but we can draw on the skills. We have one to deal with any challenges we continue to face due to the ongoing pandemic condition, China will not be included on the 2022 calendar, but will be restored to the calendar as soon as conditions.
Allow and we look forward to our long term partnership.
We remain in the and viable position of demand of races continue to exceed the available supply of weekends in the area of media rights. We made two announcements following the news that the top sports channels in Asia would close we have reached agreement with multiple broadcast partners across the region through the.
End of 2022 cities.
This ensures that our friends in Singapore, Thailand, the Philippines, Malaysia.
Indonesia, Vietnam, Myanmar, and the Chinese have missed this region of Hong Kong can watch the conclusion of the 2021 season and every race in 2022.
We also extended the agreements with the Disney in Japan, and India, India.
On the other side of the World, we extended our successful broadcast partnership with cannot boosting fronts until 2024, which includes they are dedicated left one channel.
Session from full grumpy weekend will be broadcast live in three to add alone with event highlights throughout the third week.
We continue to work with our commercial partners and announced the Crypto come Overtake Award. In addition to the title sponsorship of our spring events. It will be awarded to the driver was completed the most of it takes throughout the entirety of the 2021 season, which currently is a battle between two better.
Drivers vessel intervals.
This doesn't 'twenty, one Epsilon esports <unk> Pro championship presented by Amcor is now two events seen following our highest ever number of fans attempted to quantify.
Drivers continue to ways to remotely, but the hugely popular competition is broadcast live from the GE Infinity esports Arena in London, along with the live shows that include Natalie Pinkham, Tom Deacon and the camera the.
The action in the Pro Championship is mirroring the action of the drug with multiple volume finisher across the first six races. This.
<unk> qualification now open through a challenge is the official FY 'twenty one the video game developed by Codemasters in line with our goal of be net zero carbon by 2030, we are aiming to help develop a 100% sustainable fuel for our new generation of Puma one hybrid engines.
The focus is on the drop in fuel that can be used as a standard internal combustion engines without any modifications to the engine with a target to achieve greenhouse gas emissions savings of at least 65% relative to fossil decorative pretzels the impact of these development could be enormous with one.
A brilliant cost estimated to be all of the road by 2030 with only 8% of those being fueled battery and Thats with vehicles internal combustion engine and hybrid will continues to be essential to add and see travel as well as the hopefully industry.
Our partners are all focused on ESG initiatives Williams set an ambitious target to be climate positive by 2030. They have launched a comprehensive sustainability strategy that encompasses the climate biodiversity do have ships sustainable innovation.
Industry access for all of the purpose driven leadership on.
On the promoter side they completed the France became the first drone fee organizer to receive the highest level of certification by the FIA their commitment to our sustainable development approach includes the elimination of single use plastics, our morbidity plan that significantly reduce the carbon footprint or spectator travel and a strong commitment to social responsibility.
With 17 races completed and well on our way to deliver in the championship breakthrough of the 22. This season. Despite the ongoing pandemic I'm. So incredibly proud of the <unk> team and all our partners the flexibility on the purse evidenced display all year is truly impressive and it has been sort of war.
And so we see huge number of fence backup races celebrating our sport.
You'll see the enormous opportunity in front of us and we are committed to our vision and strategy to grow and continue to evolve but with sport.
I wanted to touch full speed ahead, and now I will turn the call back over to Greg.
Bye bye.
Thanks, Stefano and Brian.
And to our listening audience, we look forward to seeing you on Thursday November 18th at our annual Investor meeting.
Full experience will be offered in person at the New York Times Center and virtually.
A link to register can be found on our homepage. Please note all in person attendees must be fully vaccinated against COVID-19.
We appreciate your continued interest in Liberty media and hope you all stay safe and healthy.
And with that operator, I'd like to open up for questions.
Thank you.
Take our first question from Bryan Kraft with Deutsche Bank. Please go ahead. Your line is open.
Thank you and good morning, and congrats on the Braves, winning the World series.
I had two questions.
One on IR and one on Formula one on Formula One you seem optimistic that 'twenty two we'll market returned to full operating performance.
That happens do you think 'twenty two could be the year, where we see for the first time all of the benefits over the last four and a half years initiatives coming together at once to drive financial performance. It is really a step change higher than 2019 pre Covid and then my other question is.
Just curious Greg what made you decide to sell your <unk> stock is that no longer a strategic interest for Sirius XM. So just what changed there. Thanks.
Well I think I'll, let Stefan I'll comment on the Formula one as well.
Look I think 2022, we're going to see a return of many elements of the business, but we'll everything come to pass and will we be on.
New higher plateau I think it's just the beginning and we will see continued success from that level and above.
While everything come together.
Always hard to predict not only because of some of the issues around.
What contracts get executed and what sponsorship opportunities, but obviously could there be the risk of attendance issues into 2022 with COVID-19.
To be determined but I do think we will perform better in 2022% in 2021 and better than we did in 19 substantially better and I think the trend continues to be up.
Definitely I don't know what you would add.
Yes.
I would say, Greg Synthetize appropriately what I believe.
And of course, you said one thing that is really important.
The success, we were able to do.
Leave that this year. Despite the pandemic was due to the soft, but we were flexible and with our teams with the partners with the promoters to make sure that we would then be.
Chad.
It is too low.
To put into perspective, because we don't know exactly how the situation will develop of course, we believe that we can see you mitigate the situation is improving and I would say that all the elements on all the initiatives that we put in place over the last couple of years for sure. We've got a pay back starting next year.
And as far as <unk> we.
Cook our stake because we thought it was attractive and creates a potential optionality, it's not something we're looking to pursue so it seemed to make sense to recognize the gain we had and utilized the proceeds to go after our own discount on our own opportunities.
Got it okay. Thanks to you both I appreciate it thanks for the question and thanks for the call out on the Braves.
Thank you we take our next question from Vijay Jayant with Evercore. Please go ahead. Your line is open.
Good morning, So Greg did interesting transaction at least we started out last night.
Just curious why that was restructured.
The stock swap with a shareholder to increase their own as it looks like your past, 80% on Sirius now.
Does that.
That would suggest that this could be qualified as an ATB. If that is the case now you probably have three atvs in January I think probably the one becomes an ATV. So.
What does that mean are we sort of undoing the whole tracking stock structure, what are the flexibility does that get to.
Thoughts on that thanks.
Yes.
Well I think you rightly noted we undertook a transaction where we did a tax free exchange to make.
And ATB out of this.
<unk>.
And our famous line around here is no plan or intent.
And Thats one.
You ever visit my office Youll see I have some pillows, which say that thank you from courtesy accordingly, but look our <unk>.
Our whole idea is to create optionality, we have nothing to announce today about that we would've gone over 80, probably with serious as continued buyback, but the way we transacted with a tax free exchange allowed to become an ATB or something we expect will be an ATB and great optionality.
Flexibility so no plans, but we always like having atb's can have enough of them.
Great. Thanks, so much.
Thank you and we'll take our next question from Jeffrey Dodge check with pivotal research. Please go ahead. Your line is open.
Good morning, and I'll also congratulate you guys on the break is winning the World series I think that was kind of out of left field rollout folks so congratulations and crossing 80% barrier in series.
I guess I'll follow up on the CRE question with the obligatory now that Youre at 80.
Should we expect something like what Youre doing with charter where youll maintain your stake around 80, and then participate.
Participate in the buyback and then also on Siri post their call. The U S. Steel CEO made some comments that multiple auto manufacturers are ramping their steel deliveries, implying that chip shortages it bottomed out.
Beginning in the fourth quarter first quarter.
Are you seeing the same thing from your OTA partners.
On the.
What we'll do we obviously have no as I said no plan or intent.
We try to keep our options open.
Would not be able to sell directly back to <unk>.
Sell our stock in the marketplace and hold it 80 above 80, unless we had an agreement to sell right to the company, which we do not have at this time.
So.
Probably dividends of the tax free most attractive thing and we can make a determination about whether we want to sell stock into the marketplace and be above 80, we'll make that determination over time, but I would note that that would not be tax free unless we had ability to sell directly to the company, which we do not have at this moment.
Yeah.
On the Saar and where that could go.
<unk> I think.
Things will get better that's our expectation.
But clearly the fact that we had a lower Saar for many months in the second half of 2021 means a top of the funnel is not is full we do expect it to recover in refill, but it will mean, we will have.
Less opportunity for net new net adds.
Self pay net adds into 2022, so we will see what it comes but we are optimistic that our partners will get on track, but we will have a we had a great.
Self pay net add quarter, it'll be a little tougher in 2022, as we head in unless that SAR refills quickly.
Thank you.
Okay.
Thank you and we take our next question from Doug Mitchelson with Credit Suisse. Please go ahead. Your line is open.
Thanks, so much and congratulations on the Braves as well, Greg now, we often say that.
A couple questions was that the 283 letter agreement between Liberty and theory required for the ATB consideration I think you were implying that comments I just wanted to be sure.
We have constructed a transaction, where we had a tax free exchange of our stock which that is what was required to we believe to make this an ATB.
Rather than the alternative which look like it would might naturally occur which was to have CRE bias over our.
Excuse me buyback your own stock and pushes over here. So the actions we took positive action of doing a tax free exchange. We believe allows us to be an ATB.
Thanks for that and then maybe I'm missing something simple, but what was the purpose of the $2 53 letter agreement between Liberty in theory, then I'll, let I'll, let Renee talk about that sure ill give you a letter agreement was actually the result of a negotiation between us and the special Committee of Sirius XM. There was some additional materials that needed to be delivered in connection with our <unk>.
We exchange that we did need to engage in a negotiation with the special Committee and this has been asked that they made and retail.
Okay and then.
Greg I think it can be hard to <unk>.
Could you to talk too much about the relationship between Liberty Siri in Syria until the analyst day, but let me try this way is it more appealing to create long term value by taking advantage of a persistent discount over a long period as capital becomes available to do so say using theory dividends buyback Liberty Siri shares or would you rather close the discount as rapidly as possible what is the better path.
To the greatest long term value creation.
This is a debate since the beginning of time and you could think about buybacks or buybacks to be done to buy your own stock at a discount or to try and get your stock up we generally favor the long term path and like a and that alternative but clearly there is an advantage here to seeing the discount close as well. So I think it's a win win Doug.
Okay.
We'll wait for the analyst day four for more on that one thank you.
Thank you we take our next question from Ben Swinburne with Morgan Stanley. Please go ahead. Your line is open.
Great. Thank you good morning.
I'm not going to say anything about the brands it's been covered.
Yeah.
[laughter] Formula one I guess two questions, meaning all of the sort of qualitative and quantitative but certainly qualitative data as the sports having an unbelievable year and I'm wondering if you could talk about sort of two opportunities. One in race promotion are you do you think youre strengthening kind of your pricing power.
With your host partners as you move into renewals over the next few years, given all the attendance trends and I realize we just came out of Covid, where things were incredibly dicey on that front, but it seems like that part of your business may have more pricing than we've seen in the past. So that's the first one.
And then secondly next year, you've got a new car.
<unk> cap I think steps down again.
You guys wanted to make this sport more attractive for new teams.
In new capital to come into the sport New engine manufacturers. I guess question is theres a lot of rumors out there I'm curious if you are bullish youre going to see that start to really show up in the business in 'twenty two and beyond thank you.
So I'll take the first shot and I'll, let Stefano obviously add look I think we the strength of the sport in terms of the demand and the audience helps us in many ways we've seen new.
Cities want to enter like Qatar, we've seen.
Increased performance and increased success of existing promoters for example, Austin, adding extra seating all of those allow us frankly, both sides of that allow us to get a better deal and to do better both with the new partners and with the existing partners. So all to the good on the promotion side.
Stefano would you add anything on promotion.
No I think that you are totally right and we think that not only are met.
Also something related to the quality.
This show that we are beginning the what we are also keen on is offering to the people.
The races that unique experience physical experience, where abbott is the tumor one with all the things related to the provinces.
Sponsored together then leaving is something that we should give it so.
So these.
Situations. These really positive data will help also that I mentioned.
Then if I may jump in on the second part of the question, whereas it is okay for you.
I think thats it.
We are talking about the new regulations, we are talking about.
That is the discussion with each coming out you'll see that.
This is bill.
I'll be speaking is it getting to the investment that we're doing in the cab.
On the control of the cost on the fact that this 14 is a very good despite the COVID-19 situation and therefore, the fact that we want to have a more attractive or does it mean.
More teams.
But as we really are focusing in on sorry.
The new regulation will enable the cost will be more easy to deal with gigabyte.
To the other we have an incredible number.
Again, a lot of that sports. So is when the market will find the right balance with the fact that will be for sure new ones that want to come in this is the time to want to do.
The value of the data already into the sport and then in.
In the discussion that we add up all the heating oil.
The public domain about what the future technological.
Choices that you.
We have taken for the future both between the fact that the new manufacturer of discussing with the FAA.
It's a very very encouraging situation because that means that epsilon, let's take it there is technical decision support its future. So once again, we have really been an incredible moment of a great opportunity.
To consolidate this forward the pieces really in a great shape today.
Yes, and I would just echo some of the thoughts I have that Stefano said look one of the important things was to help the ecosystem and you've really seen the strength of the teams do so much better and I. Appreciate all the kind words, they now say about liberty and about Formula one's management.
And I think thats, because guess what the value of the teams has gone up dramatically and we knew that was necessary and the actions we took with the budget cap and the like and changing some of the payout all were designed to create health of the ecosystem and that's happened. So in many ways. The teams have gotten that success because it was necessary to make them healthy for us.
To get to build to the next level and the interest youre seeing of new entrants to come in and buy teams is only an echo of that success. So I think there's a lot of things that are setting up well for us.
All of those pieces about demand all of those pieces about the strength of the system all set up well for future success.
<unk>.
Well I mentioned that 2022 is going to be a step up but certainly not the last one I think we have a long trajectory of success in front of us I'm very optimistic.
Yeah, that's great and maybe just if I could do one quick follow up on the Braves.
Not to sound like Debbie Downer after the World series, but Theres, obviously, a lot going on.
Got going on with your RSM partner to say the least is that something that concerns you Greg given the revenue contribution that the Braves get from local media rights as we look into sort of what's happening with diamond sports and dish and et cetera.
Yes of course, it concerns me, but let me give you a few facts.
We have a good deal not an amazing deal, it's not a dodger like deal at R.
RSM partner it is probably one of the two or three most profitable <unk> out there right now.
And our territory 12 plus million cable households is the largest territory.
Baseball has so when you think about a digital conversion where is well set up and when you think about what the alternatives are to the traditional RSM model. If it really does evolve, which I suspect it will over time, whereas well setup and positioned as anybody in baseball. So lots of reasons to think that our artists and partners doing pretty well they can continue to do well.
The deal is not done till 'twenty eight.
And we have as I said alternatives and opportunities I think in the digital footprint, which are unparalleled in baseball.
Thank you.
Thank you.
We take our next question from David Karnofsky with J P. Morgan. Please go ahead, Sir your line is open.
Alright. Thank you Greg maybe just to follow on your prior comments just given the value is created through the teams and some of the team principles I think spoke about achieving one.
$1 billion valuation this week, how do you kind of think about what the right economic split.
Should be between ethylene in the teens, maybe a little longer on and then just on the form a repurchase do you expect to buyback more shares from here or was that kind of more about capturing the discount between the indications as they widen out a lot over the summer.
So.
I am very happy to see the teams do well as I think as I said that was necessary.
For the.
The success of F. One the new cockpit agreement has some incentives that as revenue and profits increase we take back some of that which had been given over the last several deals.
I already worn the teams expect more demands from us based on how much success. They have had and they smile. So we'll see how those negotiations go but.
I'm optimistic that we can continue to have success with the teams as we've had over the last couple of years and we will both benefit.
On the Florida, I think we like both the valuation and which obviously tried to take advantage of the discount we liked winning twice in that transaction and as we generate free cash flow at one.
As we will.
Youll see us take actions to try and take advantage of pricing and other things that we think are attractive in the market.
As I said earlier, no plan or intent announced today.
Thank you.
Thank you.
Our next question from David Joyce with Barclays Capital. Please go ahead. Your line is open.
Thank you.
I appreciate the great numbers on the Austin.
Brian.
Could you also provide color on.
The per cap spending increases during the third quarter.
Average attendance.
Overall.
At the races, as well as with the Paddock club.
Comparing it to 2019.
Linda the fourth quarter for the remaining the races. What is the capacity look like thanks.
Yes, I think thats, a hard comparison because in 2019, we had.
The different timing of different races, and shifted around so it is not it's not a per it's not an equivalent saying because the calendar has shifted so we're not prepared to dissect that or announced that forecast for 2000 for the fourth quarter yet.
Any further color that we can learn about the per cap spending.
If we compare the race to race.
Yes.
I'll, let either.
Stephane do you want to comment, but I think we'll call it out okay.
Yes, I mean, what I can see that for sure the last events where people back up on me.
We sold and cruise of course are the older product of licensing we have growing up because there is the possibility to share their experience and have the right product to buy so that's all I can say I can see that it is happening and what I can add on top of what you said revenues.
Sure now we have a head into rates as well.
We have capacity full capacity.
Grandstands and also part of that so that is something that we're looking forward to see people back again.
Okay. Thank you.
Thank you next question.
We take our next question from Matthew Harrigan with benchmark. Please go ahead. Your line is open.
Thank you.
And so formula ones.
<unk> as you know is on CNBC. This morning talking about the improvement in the aerodynamics next year closer following better passing more exciting racing.
Also elaborated on the developments in the Saudi Aramco JV that you formed in March of last year and he really.
As Stephane alluded to if you really talked about.
Applications for road vehicles, as well as on track and I almost have the impression that even though.
There are some nuances, even smaller engines and all that.
Might even be backward compatible for existing vehicles on the road, which.
Don't know how reasonable that is.
Stefano completely excluded that either or maybe you didn't bother mentioning it and.
This is kind of a wild question, but would there be any possibility for your spec to get involved in that I think its mandate. This is limited to the TMT, but clearly this is something that.
I know it's a.
It's a moon shot, but it sounds like it's pretty interesting given some of the principles involved like formula one in Saudi Aramco. Thank you.
I'll, let Stefan I'll comment on some of the technical capabilities and then ill get onto this back.
Okay. So let's touch on the technical side first of all we don't have to forget that as one of the oldest.
And in <unk>.
The technologies, which can be <unk>.
Can you transfer from the race track to the production of vehicles and this will be the case also in our future development income on new technology, when you're having in.
And having an engine or a powertrain that will be for sure a combined hybrid engine with a sustainable part of visa Guizhou and this will be very beneficial because at the end of the day, what we want to claim.
<unk> platform.
Ways to keep the motorsport at the center of the technological research both Tony for the V go yet, but also for the small deal but cannot predict technology into it.
It'd be good equation. So I think that these really are.
We are taking the lead but something that we have been always.
And this way of treating technologies versus mobile sport, one thing that I want to underline. These are we're talking about multisport, we're talking about the motion so the balance between the high level of a sensitive.
And something that the customer the fashionable.
<unk> is a very important balance to expect otherwise we can see how the other situation, where because that'll be the case and the platform.
Not to be the best of luck. So this would deal with the future of approach on the technological develop.
Development of <unk> hundred one.
Okay.
Well.
Our spec is a pretty broad mandate and we have nothing to announce today, we certainly do look at the advancement in synthetic fuels have looked around them is whether there is an investment opportunity whether it's the stack or some other part of Liberty haven't found one yet, but certainly are not adverse to the idea and recognize we're in a unique position to try and see.
The opportunities there and promote them as well.
But just to push my question I apologize.
I don't know Scott the entrance from past. This morning that this could actually be backward compatible for vehicles that are already.
On the road I mean, it might be.
Totally misunderstand matters within the scope of what you are trying to do.
Stephane do you want to add I confirm that yeah.
That is absolutely.
Yes, because that is something that we don't have to forget that.
All around the world there are billions of car that needs to be continuing into the future. So our answer is with the sustainable fuels. The approach that we are working on.
Of course, with the Aramco, but for all the.
All of the or the supply of authority in the Batesville for what will be the teams are working but I hope that we get the chance to make sure that this path will be sustainable also for these <unk> will be around.
We're in the future.
Alright, great. Thanks.
Thank you.
Thank you we take our next question from Jason Bazinet with Citi. Please go ahead. Your line is open.
Yes.
I have sort of a maybe a strange question do you guys have an estimate in terms of how much capital you think liberty would need.
To close the NAV discount on Liberty Sirius if you chose to do that.
Two zero.
No.
We don't have an estimate that I'm sorry.
Okay. Thank you.
Thank you.
We take our next question from Steven.
With Goldman Sachs. Please go ahead your line is open.
Hi, great. Thanks for taking the questions on Formula one it sounds like there was a lot of demand on the promoter side host sprint races for next year, and maybe going off Dan's earlier question could you discuss the extent, which we should expect to see on monetize the sprint races. On your calendar next year and then maybe more broadly I was curious how much more room, you think there is for formula one.
To expand the sprint circuit beyond the 6% races overtime.
I'll, let you handle that Stefano.
That's no did we lose you.
Yes, Sir.
Okay, I'll take a cut even though I will not be as eloquent as Stefano.
The there is a tension.
We like it the fans like it the teams and.
And the drivers don't necessarily love it partly because it's their notice system and partly because it incurs potential incremental expense for them against the cost cap.
There are revenue opportunities around it both in terms of <unk>.
Greater attendance at events, including qualifying but also in terms of potentially sponsorship of the sprint race and the like so clearly there is an economic reason, but theres attention, which we're not dismissive of that it puts more stress on the teams and more stress on the drivers. So we'll see how we can manage through.
Those two.
Yes.
The counterpoint elements.
Great. Thanks for that and maybe just one more if I could on the Asian broadcast deals that you announced is there any more detail you can provide on these deals maybe in terms of how they compared to Fox sports and then maybe the likelihood that they get renewed past 2022.
We're not disclosing that.
We are somewhat optimistic we can go forward, but we're not at this moment can disclose how they compare thank you.
Okay, great. Thank you.
Thank you.
That will conclude our Q&A session today I would now like to turn the call back over to your hosts for any additional or closing remarks.
Thank you for your interest in Liberty Media, we do hope to see you on November 18th in person or virtually at our Investor day.
Until then have a good one.
And ladies and gentlemen that concludes today's conference call. Thank you for your participation you may now disconnect.
Yeah.
[music].
Yeah.