Q3 2023 Liberty Media Corp Earnings Call

November 3, 2023

Operator: Welcome to the Liberty Media Corporation's 2023 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 1 on your telephone. As a reminder, this conference will be recorded November 3rd. I would now like to turn the call over to Shane Kleinstein, Vice President Investor Relations. Please go ahead.

During the presentation all parties, 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 will be recorded in November 3rd.

I would now like to turn the call over to Shang clients, Dean Vice President Investor Relations.

Go ahead.

Thank you. 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 the most recent Form 10-K and 10-Q, filed by Liberty Media with the SEC and the most recent Form 10-Q and registration statement on Form S-1, filed by Atlanta Braves Holdings with the SEC. These forward-looking statements speak only as of the date of this call and Liberty Media and Atlanta Braves Holdings expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in Liberty Media or Atlanta Braves Holdings expectations with regard there to or any change in events, conditions or circumstances unless any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, SiriusXM and Atlanta Braves Holdings, including adjusted OIBDA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media, SiriusXM and Atlanta Braves Holdings schedules one through three can be found at the end of the earnings press release issued today, which are available on Liberty Media and Atlanta Holdings' website. Now, I would like to turn the call over to Greg Lefever, Liberty's President and CEO.

Shane Kleinstein - Vice President, Head of Investor Relations & Sustainability, Liberty Media: Thank you. 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 the most recent Form 10-K and 10-Q, filed by Liberty Media with the SEC and the most recent Form 10-Q and registration statement on Form S-1, filed by Atlanta Braves Holdings with the SEC. These forward-looking statements speak only as of the date of this call and Liberty Media and Atlanta Braves Holdings expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in Liberty Media or Atlanta Braves Holdings expectations with regard there to or any change in events, conditions or circumstances unless any such statement is based.

Q and registration statement on form S. One followed by Atlanta Braves holdings with the SEC.

These forward looking statements speak only as of the date of this call and Liberty media and in Atlanta Braves Holdings 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 or Atlanta Braves holdings expectations with regard there to or any change in events conditions or circumstances.

Any such statement is based.

On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, Sirius XM, and Atlanta Braves holdings, including adjusted OIBDA and adjusted EBITDA, the required definitions and reconciliations for Liberty media, Siriusxm and Atlanta Braves Holdings schedules one through three can be found at the end of the earnings press release issued today, which are available on Liberty media and Atlanta.

On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, SiriusXM and Atlanta Braves Holdings, including adjusted OIBDA and adjusted EBITDA. The required definitions and reconciliations for Liberty Media, SiriusXM and Atlanta Braves Holdings Schedules 1 through 3 can be found at the end of the earnings press release issued today, which are available on Liberty Media and Atlanta Holdings' website. Now, I would like to turn the call over to Greg Maffei, Liberty's President and CEO.

Holdings' website now I would like to turn the call over to Greg Lefever, Liberty's President and CEO. Thank.

Gregory Maffei - CEO, Liberty Media: Thank you, Shane and good morning to all. 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. Also, during Q&A we will be available to answer questions related to the Atlanta Braves Holdings and the Braves' management will be available as well.

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.

Also during Q&A, we will be available to answer questions related to the Atlanta Braves holdings embraced management will be available as well.

So beginning with Liberty SiriusXM, we did propose a combination LSXM and SIRI. The goal is to rationalize the dual corporate structure, create a single share class and benefit both groups of shareholders. We believe such a combination would lead to enhanced trading dynamics at new Sirius, with increased liquidity, less tactically pressured, for example, a small short interest and a higher likelihood of future index inclusion. We will provide updates on this potential transaction, only if and when an agreement is reached. So let me turn to Sirius itself.

Groups of shareholders.

We believe such a combination would lead to enhanced trading dynamics at new serious with increased liquidity.

Tactically pressure for example, a small short interest in.

In a higher likelihood of future index inclusion.

We will provide updates on this potential transaction only if and when an agreement is reached.

So let me turn to Sirius itself.

Q3 results demonstrate what management had put forward during the year that there would be continuous improvement throughout the year and we saw sequential improvements in self-pay net ads and we expect a slightly positive back half of the year. EBITDA grew 4% versus the prior year and 6% sequentially and there were $40 million of cost savings that were realized during the third quarter. The debit--the dividend was raised 10%, the board approved that, showing continued confidence in Sirius' cash flow generation capabilities. Sirius also announced an expanded partnership with Ford to make SiriusXM a standard feature in all traditional F-1s, beginning with the 2024 model year. It's important because the Ford F-150 has been the bestselling vehicle in the US for over 40 years.

EBITDA grew 4% versus the prior year, and 6% sequentially and there were $40 million of cost savings that were realized during the third quarter.

The debit the dividend was raised 10% border prove that showing continued confidence in Sirius is cash flow generation capabilities.

Sirius also announced an expanded partnership with Ford to make series six Emmy standard feature in all traditional F. One beginning with the 2020 for model year.

It's important because the Ford F 150 has been the best selling vehicle in the U S for over 40 years.

Management does remain focused on its strategic objectives, supported by the significant EBITDA and free cash flow generation. You will see a new streaming experience and branded platform announced next Wednesday, the day before our Analyst Day by the Sirius management team at their own event and we believe this new experience will be able to drive engagement and enhance subscriber acquisition and retention.

Supported by the significant EBITDA and free cash flow generation you.

You will see a new streaming experience and branded platform announced next Wednesday, the day before our analyst day.

By the serious management team at their own event and we believe this new experience will be able to drive engagement and enhance subscriber acquisition and retention.

Turning now to the Formula One group. We announced in September our planned acquisition of Quint. Quint is a provider of hospitality inventory and they sell unique experiences to F1, the NBA for the NBA All Star game, the Kentucky Derby and other sporting events. We believe this merger, this purchase we'll announce, enable us an enhanced partnership with F1 and lead us to expand to other live sporting events. It's quite a--it's a high growth asset with EBITDA and cash flow positive capabilities, and currently already are both, but we'll expect we'll grow more over time. Turning to other things at F1, during the quarter in October, we repriced the $1.7 billion of our F1 Term Loan B and we tightened the spread there from 300 basis points to 225 basis points.

We announced in September our planned acquisition of Quint.

Quint is a provider of.

Hospitality inventory and they sell it unique experiences to have won the MBA for the NBA All star game, the Kentucky Derby and other sporting events. We believe this merger this purchase will announce unable us an enhanced partnership with F. One.

And lead us to expand to other live sporting events.

It's quite a high growth asset with EBITDA and cash flow positive capabilities and currently are already are both but we'll expect we'll grow more over time.

Turning to other things that have won during the quarter in October we repriced the $1 $7 billion of our F. One term loan b and we tightened the spread there from 300 basis points to 225 basis points.

And F1 itself, we see surging popularity and it continues. We've had continued sellouts in the grandstands in the Paddock Club. We've seen growth in engagement and awareness across social platforms, TV, digital platforms like F1 TV, social consumer media and others. You continue to see new interest in Formula One, for example, we've seen new investors--high profile investors joined at Alpine, Rory McIlroy, Anthony Joshua and Patrick Mahomes and that follows Ryan Reynolds' investment in June. This morning, at F1, we also announced the five-year extension of our race in Brazil through 2030. We are excited for the inaugural Vegas race, just under two weeks, to begin. The pit building is ready, we received a certificate of occupancy to operate for the race. This will be the largest pit building on the F1 calendar, the rooftop deck and wraparound balcony will provide 360 degree views of the track.

We've had continued sellouts in the Grandstands in the Paddock club we.

We've seen growth in engagement and awareness across social platforms T V.

Digital platforms like F. One T social consumer media and others.

You continue to see new interest in Formula. One for example, we've seen new investors high profile investors joined at Alpine Rory Mcilroy, Anthony Joshua and Patrick Mahomes and that follows Ryan Reynolds investment in June.

This morning, at F1, we also announced the five-year extension of our race in Brazil through 2030. We are excited for the inaugural Vegas race, just under two weeks, to begin. The pit building is ready, we received a certificate of occupancy to operate for the race. This will be the largest pit building on the F1 calendar, the rooftop deck and wraparound balcony will provide 360 degree views of the track.

This morning, that's one we also went out to five year extension of our race in Brazil through 2030.

We are excited for the inaugural Vegas race, just under two weeks begin the pit building is ready we received a certificate of occupancy to operate for the race. This will be the largest pit building on the F. One calendar the rooftop deck and wraparound balcony will provide 360 degree views of the track.

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The temporary structure is in place, the bridges are complete, we're ready to go. This event will offer an unparalleled fan experience. It's going to kick off with an all-star lineup for the opening ceremony, Wednesday before the race, which will air on ESPN2. To name a few, there'll be Keith Urban, Andra Day, J Balvin, will.i.am, Journey and others. We'll also have Netflix hosting its first ever live sporting events, the Netflix Cup. This will be a golf tournament with F1 drivers and PGA tour players and it will stream on Netflix on the 14th of November at 6 P.M. Eastern time. The Vegas race is generating record-breaking sponsorship levels with new marquee brands and these example include Moet Hennessy, T-Mobile and Google Chrome.

This event will offer an unparalleled fan experience.

Kick off with an all star lineup for the opening ceremony Wednesday before the race, which will air on ESPN two to name a few there'll be Keith urban Andrew de J Belden will you will I am journey and others will also have Netflix hosting its first ever live sporting events. The Netflix Cup this will be a golf tournament.

F. One drivers drivers and PGA tour players and it will scream on Netflix on the 14th of November at six P. M Eastern time.

The Vegas race is generating record breaking sponsorship levels with new marquee brands. In these example include moet Hennessy T Mo and Google Chrome.

But more importantly, we think the biggest experience will create commercial opportunity beyond the race itself and accrue to the broader F1 ecosystem. The MX partnership we recently announced is a great example and there are more to come. We did incur significant expense in launching year one in Vegas and that included extra provisions for safety, security and traffic planning, which was required by local regulators and we had several non-recurring items. For example, our first year-only opening ceremony, as I mentioned, and the design and launch of our multipurpose app and creation of a fan database. We remain highly confident in the increased efficiency to operate there and our growing profitability in years two and beyond and we remain bullish on the broader value creation at LVGP that far outweighs the increased investment in start up costs.

<unk> partnership we recently announced is a great example, and there are more to come.

Oh, we did incur significant expense and watching your one in Vegas and that included extra provisions for safety security and traffic planning, which was required by local regulators and we had several nonrecurring items. For example, our first you're only opening ceremony as I mentioned and the design and launch of our multipurpose App and <unk>.

For example, our first year-only opening ceremony, as I mentioned, and the design and launch of our multipurpose app and creation of a fan database. We remain highly confident in the increased efficiency to operate there and our growing profitability in years two and beyond and we remain bullish on the broader value creation at LVGP that far outweighs the increased investment in start up costs.

<unk> of our fan database.

We remain highly confident in the increased efficiency to operate there and our growing profitability in years two and beyond and we remain bullish on the broader value creation at LGBP L. B G P that far outweighs the increased investment in start up costs.

L. B G P that far outweighs the increased investment in start up costs.

Let me turn now to Liberty Live Group, where we issued new 1.15 billion of 2 3/8 live exchangeable in September, $918 million of those proceeds were used to repurchase 93% of our existing LLYVA exchangeable. Looking at the Live Nation itself, another record quarter announced, looking year-to-date, they've sold 140 million tickets versus 121 million for the full 2022. Revenue was up 36%, AOI was up 33%, they saw strength in all markets, venues and price points with international leading the way. Year-to-date, concert fans are up 21% with international fans up 34%. Per fan profitability is up double digits globally at operated and owned theaters and clubs. And sponsorship has been a tremendous win with a new large deal with Mastercard driven again by growth in the international concerts platform. Live sees continuing tailwind into 2024 and beyond. Consumer wallets are continuing to be spent on wide experiences, we see untapped potential in the continuing globalization of Live's business and large venues are showing a pipeline and sponsorship commitments, which were up double digits.

New 1.15 billion of two and three eighths live exchangeable in September $918 million of those proceeds were used to repurchase 93% of our existing.

L Y B exchangeable.

Looking at the live nation itself Ah another record quarter announced a looking year to date <unk> sold 140 million tickets versus $121 million for the full 2022.

Revenue was up 36%, a why was up 33% they saw strength in all markets venues when price points with international leading the way.

Year to date constant fans are up 21% with international fans up 34%.

Per fan profitability is up double digits globally at operated and owned theaters and clubs. And sponsorship has been a tremendous win with a new large deal with Mastercard driven again by growth in the international concerts platform. Live sees continuing tailwind into 2024 and beyond. Consumer wallets are continuing to be spent on wide experiences, we see untapped potential in the continuing globalization of Live's business and large venues are showing a pipeline and sponsorship commitments, which were up double digits.

Per fan profitability is up double digits globally, and operated and owned theaters and clubs.

And sponsorship has been a tremendous win with a new large deal with Mastercard driven.

Driven again by growth in the international conflict concerts platform.

Lives. These continuing trail win tailwind into 2024 and beyond. Consumer wallets are continuing to be spent on wide experiences, we see untapped potential in the continuum and globalization of life's business. And large venues are showing a pipeline and sponsorship commitments, which were up double digits.

Consumer wallets are continuing to be spent on wide experiences, we see untapped potential in the continuum and globalization of life's business.

And large venues are showing a pipeline and sponsorship commitments, which were up double digits.

Lastly, looking at the Braves. It was an incredible season on field and off the field, even if the play out run was obviously more disappointing and ended earlier than we had hoped. We finished with the best record in Major League Baseball, 104 wins against 58 losses. 3.2 million tickets were sold, a new record for Truist Park. We won our sixth straight Nationally League East title, the Braves have won the most division titles of any team in baseball since the institution of divisional play in 1969. Braves had strong financial performance, baseball revenue was up 11% year-to-date from increased ticket demand and attendance. And the battery continue to benefit from increased traffic and rent growth with adjusted OIBDA at the mixed use up 15% in their nine months versus the prior year.

It was an incredible season on field and off the field, even if the play out Ron was obviously more disappointing than ended earlier than we had hoped.

We finished with the best record in Major League Baseball 104 wins against 58 losses three.

$323 2 million tickets were sold a new record virtuous park.

We want our six straight nationally title the.

The Braves have one the most division titles at any team in baseball since the institution of divisional play in 1969.

Reis had strong financial performance baseball revenue was up 11% year to date from increased ticket demand in attendance and.

And the battery continue to benefit from increased traffic and rent growth with adjusted OIBDA at the mixed use up 15% and their nine months versus the prior year.

And with that let me turn it over to Brian for some more on our financial results.

Brian J. Wendling - Chief Accounting Officer & Principal Financial Officer, Liberty Media: Thank you, Greg and good morning.

My remarks this morning, when I'm talking about balance sheet figures, we'll be comparing 9/30 to the adjusted 6/30 balances that are adjusted for the split off that was completed on July 18th and the reclassification of our tracking stocks that was completed on August 3rd, as you'll see noted in the release. At quarter end, Liberty SiriusXM Group had attributed cash, liquid investments and monetizable public holdings of $339 million. Excluding $53 million of cash held at SiriusXM and including the Battery stake held at LSXM is valued at $65 million as of 9/30. We expect these shares will be exchanged with third party lenders to pay down debt in the near-term. There's also $1.1 billion of undrawn margin loan capacity at the parent level, related to our SiriusXM margin loan. As of November 2nd, the value of the SiriusXM stock was $14.9 billion, we have $1.4 billion in principal amount of debt against these holdings. Total Liberty SiriusXM Group attributed principal amount of debt is $11.5 billion, which includes $9.4 billion of debt at SiriusXM. Subsequent to quarter end, Liberty SiriusXM retired the remaining $199 million outstanding face value of the 1.375% basket Convertible Notes.

So the adjusted 630 balances that are adjusted for the split off that was completed on July 18th and the reclassification of our tracking stocks. It was completed on August 3rd as Youll see noted in the release our.

At quarter end Liberty Siriusxm group had attributed cash liquid investments and monetize school public holdings of $339 million.

Excluding $53 million of cash held at Siriusxm and including the batter stake held at Alice Exxon is valued at $65 million as of 930. We expect these shares will be exchanged with third party lenders to pay down debt in the near term.

There's also $1 1 billion of Undrawn margin loan capacity at the parent level related to our Sirius XM margin loan.

As of November 2nd the value of the Sirius XM stock was $14 9 billion, we have $1 4 billion in principal amount of debt against these holdings total Liberty Siriusxm group attributed principal amount of debt is $11 5 billion, which includes $9 4 billion of debt at Sirius XM. Subsequent to quarter end Liberty Sirius XM retired the remaining $199 million outstanding face value of the $1 37, five basket convertible notes.

Subsequent to quarter end Liberty Sirius XM retired the remaining $199 million outstanding face value of the $1 37, five basket convertible notes.

Turning to the Formula One group, at quarter end, Formula One group had attributed cash and liquid investments of $1.5 billion. This includes a $947 million of cash of Formula One. Total Formula One group attributed principal amount of debt was $2.9 billion, which includes $2.4 billion of debt at F1, leaving $500 million at corporate level. F1's $500 million revolver is undrawn and their leverage at quarter end was 2.2 times and as Greg mentioned, F1 repriced its Term Loan B in October, resulting in 75 basis points of margin compression to 225 basis points. The F1 business is best analyzed on an annual basis given its variability and the year-over-year race calendar.

Total Formula One group attributed principal amount of debt was $2 9 billion, which includes $2 4 billion of debt F. One, leaving $500 million of corporate level.

F. One $500 million revolver is undrawn and their leverage at quarter end was two two times and as Greg mentioned Def one repriced its term loan b in October, resulting in 75 basis points of margin compression.

225 basis points.

Yep, one business is best analyzed on an annual basis, given its variability and the year over year race calendar.

With that said though, I will make a few brief remarks on our quarterly results. During the quarter, F1 recognized the higher proportion of season-based income due to 8 out of 22 races occurring during this quarter, compared to 7 out of 22 last year. The mix of races also benefited our financial results in the third quarter, with two flyaway races, Singapore and Japan, taking place this year versus France in the prior year period. Formula One grew OIBDA in the quarter, in line with revenue growth. We realized leverage on team payments during the quarter, while also making incremental investments in growth initiatives that were lower or not incurred in the prior year period, like the Vegas race and F1 academy.

The mix of prices also benefited our financial results in the third quarter with two fly away races, Singapore, and Japan, taking place this year versus France, and the prior year period.

Formula One group OIBDA in the quarter in line with revenue growth.

We realized leverage on team payments during the quarter, while also making incremental investments in growth initiatives that were lower or not incurred in the prior year period like the Vegas race and have won academy.

Our team payments are best viewed on a year-to-date basis and represented 64.6% of pre-team OIBDA for the first nine months, I will note that Q2 and Q3 tend to have higher percent payout ratios based on the greater mix of European races in these two quarters. Reminder that other cost of F1 revenue and SG&A are best viewed as a percent of total revenue, other costs of F1 revenue for the quarter was 21% of total revenue. Note that the LVGP-related revenues and other cost of sales will largely be recognized in the fourth quarter when the race occurs; on SG&A, the third quarter included $8 million of costs related to LVGP. And on Vegas, as Greg said, the Paddock building's ready.

Reminder, that other cost of F. One revenue and SG&A are best viewed as a percent of total revenue other costs at half one revenue for the quarter was 21% of total revenue.

Note that the L. D. G P related revenues and other cost of sales will largely be recognized in the fourth quarter. When the race occurs on SG&A. The third quarter included $8 million of costs related to <unk>.

Non Vegas as Greg said the back buildings ready.

Year-to-date through the third quarter, we incurred approximately $280 million of CapEx related to the pit building structure and trap preparation. The majority of the CapEx spend has and will be incurred at the corporate level related to the pit building as the land and buildings sit within F1--Formula One group, sorry, separate from the Formula One OpCo. Track-related CapEx has and will be incurred at the F1 OpCo level. At the Liberty Live group, there's attributed cash, liquid investments and monetizable public holdings of $417 million, which includes the ETF assets. There's also a $400 million of undrawn margin loan capacity related to our Live Nation margin loan.

<unk> track related Capex has and will be incurred at the F. One opco level.

At the Liberty Live group, there's attributed cash, liquid investments and monetizable public holdings of $417 million, which includes the ETF assets. There's also a $400 million of undrawn margin loan capacity related to our Live Nation margin loan. As of November 2nd, the value of our Live Nation stock was $5.7 billion, we had $1.2 billion in principal amount of debt against these holdings and during the quarter, we raised $1.15 billion of new 2.375% Live Nation exchangeable bonds. A portion of these proceeds were used to repurchase approximately 93% of our outstanding 0.5% Live Nation exchangeable bonds worth $918 million. There's $62 million remaining outstanding on the 0.5% bonds, which have a September 24 put/call date that we expect to settle with the remaining proceeds from the recent issuance. Liberty in Arkansas and its subsidiaries are in compliance with our debt covenants at quarter end.

As of November 2nd the value of our live nation stock was $5 7 billion, we had $1 2 billion in principal amount of debt against these holdings and.

During the quarter, we raised 1.15 billion of new two 375 live nation exchangeable bonds. A portion of these proceeds were used to repurchase approximately 93% of our outstanding 5% live nation exchangeable bonds were at $918 million.

A portion of these proceeds were used to repurchase approximately 93% of our outstanding 0.5% Live Nation exchangeable bonds worth $918 million. There's $62 million remaining outstanding on the 0.5% bonds, which have a September 24 put/call date that we expect to settle with the remaining proceeds from the recent issuance. Liberty in Arkansas and its subsidiaries are in compliance with our debt covenants at quarter end.

There are $62 million remaining outstanding on the 0.5% bonds, which have a September 24 put call date that we expect to settle with the remaining proceeds from the recent issuance.

Liberty in Arkansas and subsidiaries are in compliance with our debt covenants at quarter end.

And turning briefly to the Atlanta Braves, revenue growth in the quarter primarily reflects increased attendance at regular season games and growth in related revenues including ticket and concession revenue, which more than offset the impact of one less home game in the current period. Battery mixed-use revenue grew due to increased rental income from existing and new tenants and then baseball operating costs grew in the third quarter, primarily due to increased player payroll and higher minor league expenses. SG&A was also elevated in the third quarter driven by costs related to the split-off. And with that, I'll turn it over to Stefano to discuss Formula One.

Battery mixed used revenue grew due to increased rental income from existing and new tenants.

And then baseball operating costs grew in the third quarter, primarily due to increased player play player payroll and higher minor league expenses SG&A was also elevated in the third quarter driven by costs related to the split off and with that I'll turn it over to Stefano to discuss formula one.

Stefano Domenicali - President & CEO, Formula One: Thanks, Brian. Good morning. We are coming to the end of an action-packed triple-header in the Americas, from Austin to Mexico City and this weekend, to Brazil. Max Verstappen and Red Bull have had an incredible season winning their second consecutive Constructors' Championship and Verstappen's third consecutive title. While the championship has been secured for several races, the other teams are still competing fiercely with tight battles all the way down the field activity [inaudible]. We have added six different teams represented on the podium season to date; McLaren, Mercedes and Ferrari have gained strength throughout the season, evidenced in Austin with Lando's excellent start and excitement around the various test strategy implemented. Lewis and Sainz is getting closer to Max in Austin and Mexico and full Ferrari [inaudible] in the last six races.

Stopping and Red Bull have had that he could actually build season, we didn't they had a second consecutive constructed championship and desktop and third consecutive cycle well.

The championship has been secured for senator races.

Other teams are competing fiercely with tight battles, all the way down to see activity, but.

We have added six different teams represented on the podium season to date the clouded, let's say this and cirrhotic have gained strength throughout the season evidenced in Austin with lenses excellent stopped and excitement around the virus that strategy implemented Santa Luis is getting closer to Max in Austin, and Mexico and.

Folks are I suppose in the last six races.

We have more battles left to witness for the remainder of the season, even with the number of teams shifting focus to their 2024 cars. With gaps in performance appearing to be closing over recent events, we hope for a real challenge for Max and Red Bull next year. Our business is in a position of strength; final engagement is high, commercial interest is strong, the teams have sustainably improved their financial health, generating their own incremental sponsorship which benefits our entire F1 ecosystem. We have a number of brand expansion initiatives in the works, including the much anticipated Apple theme starring Brad Pitt. I will have more to share on our strategies to capitalize on this momentum at Liberty's Investor Day next week.

Our business is in a position of strength.

Final engagement is high commercially.

The teams have to sustainably improve their financial health.

That one can cause I meant the sponsorship which benefits our inside of Epsilon ecosystem have you have a number of brand expansion initiatives in the works, including the much anticipated Apple theme starring Brad Pitt.

I will have more to shed or notwithstanding to capitalize on this momentum at Liberty's Investor Day next week.

Race attendance in 2023 continues to sell out. The highlight of the third quarter was the record 480,000 weekend attendance of Silverstone for the British Grand Prix, the highest recorded of any event in recent decades. Other highlights, so the Japanese Grand Prix welcomed total weekend attendance of 202,000--the highest level since 2006. The Netherlands sold out at 305,000 fans, Singapore sold out at 260,000 and last weekend in Mexico saw another record with 400,000 attendees. These are massive crowds for the countries where we race.

20th Sea containers to sell out the highlights of the third quarter was a record 480000, a weekend tens of silver spring for the busy and probably the highest with close of the any event in recent decades.

That I allowed so the Japanese company welcomed total we cannot then there's all the London 2002.

The highest level since 2006, the Netherlands sold out three of them 5000, sensed Singapore sold out of 260000 last weekend in Mexico. So another they called with 400000 and these.

These are massive crowds for the kudzu well we race.

As we discussed, our fan are increasing, accessing F1 content across multiple media platforms including linear, digital and social. We are building a richer and more varied content across mediums to satisfy the various types of fans. Over in TV, global audiences average approximately 70 million. Growth market has seen solid year-over-year growth viewership, including Spain, Australia, Mexico as well as the US where we have also had particularly strong growth in F1 TV subs. We've seen growth on digital video viewership, with the F1 YouTube channel reaching almost 10 million subscribers, plus 14% year-over-year. Across our social media channels, F1 reaches 67.6 million followers as of Q3 at 26%, year-over-year.

Building, a richer and more divided come to the close medium to satisfy the various types of funds all.

All in the T V.

Hello. This is average of approximately $70 million gross market that seems solid year over year growth viewership, including Spain, Australia, and Mexico as well as the U S. Where we have also had particularly strong growth in that part of the TV steps.

We've seen growth on digital video viewership.

With the F. One Youtube channel, reaching almost 10 million subscribers last 14% year over year.

Cross sell with social media channels, that's why reaching 67 6 million followers as of Q3.

The 6% year over year.

Tiktok is now fastest growing platform on social media, drawing existing and new fans alike. Massive audience gravitate to both the race and the lifestyle content across our social channels. EA launched the F1 23 game in June and the US is now the biggest market for our game, surpassing the UK for the first time. According to OpenCritic, the game continues to be the highest rated annualized sporting game franchise globally. F1 continues to advance our approach to all this measurement as consumer behaviors evolve. We aim to better capture our wider viewership and engagement for the future as we continue to build these touch points.

Existing and new funds a lot massive Ole just gravitate to both the race in the lifestyle content, because I start with social channels.

Yeah, I launched the FY 'twenty to the game in June and the U S is now the biggest market for our game so Boston the UK for the first time.

According to open clinic. The game continues to be the highest rated annualized sporting game franchise globally.

If one container slip vast Talbot approach two oldest measurement as consumer behaviors evolve, we aim to better capture level why the viewership and engagement for the future as we continue to build these touch points.

Turning to recent updates on our commercial agreement. On race promotion, we look forward to the confirmed '24 race championship calendar next year. We recently renewed our agreement in Belgium for an additional year 2025 after a record year race attendance of 380,000 this season. The promoter has invested in these capacity increases and more variety entertainment for fans in recent years, which has benefited their attendance figures. On media rights, we entered into a strategic partnership with the Viaplay in the Netherlands that will allow their customer to access the F1 TV Pro as part of their Viaplay subscription, providing fans with incremental commentary, camera angles, radio communication and more.

All right promotion, we look forward to the confirmed Twentyfold race Championship Glenda next year, what are your symptoms and you all were getting made in Belgium for additional use in 2025 off the rate could be or at least the death of XOMA 300000.

Susan.

The promote that has invested in these capacity increases and more about either the entertainment for financing at least in the east which has benefited that attendance figures.

I'll make you are right we entered into a strategic partnership with the via play in the Netherlands that will allow that customer to access the asphalt T V pro as part of their via play subscription providing fans with incremental commentary camera angles radio communication and more.

Our agreement with RTBF in the Netherlands and Belgium were also renewed for multiple seasons. This past week, we have announced an expansion of our agreement with DAZN to broadcast F1 in Spain in an attractive deal until the end of 2026, a market with strong growth in TV viewership this season. TV Pro and access subscribers are continuing to grow and provide a tailwind to our media rights revenue. On sponsorship, our recently announced new multi-year regional partnership with American Express, welcome them as a official payment partner for the F1 in the Americas and for Las Vegas Grand Prix. Card members will have special benefits and access across F1 races in the Americas, including pre-sale tickets and curated onsite benefits.

This past week, we have announced an expansion of our gaming with the zone to broadcast that funding, Spain in an attractive deal until the end of 2026.

Markets with strong growth in TV viewership this season.

April and access subscribers continued to grow and provide a tailwind to our media rights revenue.

Oh on sponsorship.

Our recently announced new multiyear regional partnership with American Express welcome them as a frictionless payment Barnum before the F. One in the Americas and four Las Vegas were up rate.

Card members will have special benefits and access across F. One races, India, medicus, including presale tickets and greater downside benefits.

We were also thrilled to renew our agreement with Pirelli and Liqui Moly. Pirelli will remain F1 global tire partner until 2027, securing their place as long-standing supplier to Formula One. Liqui Moly will also continue as an official partner under a multi-year renewal. Overall, demand and interest from sponsor continues to be strong given the growth in our brand and the opportunity to align with F1 sustainability initiatives. We continue to have meaningful success in securing new and renew sponsors and we are confident in our coming pipeline. All eyes are now in Las Vegas, as we countdown to the Grand Prix weekend. While the race itself will be a spectacle, it has also generate the exciting noise that benefits the entire F1 ecosystem through the increased commercial interest, fan awareness and broader brand value. The fan experience will be unparalleled. The team has continued to invest in creative offering for its fan, including [inaudible] with the Wynn Grid Club, a first-of-its-kind membership program that will debut in Las Vegas Grand Prix.

<unk> Modi will also continue as an official partner under the multi year than you will.

They're all demand and interest from sponsor continues to be strong given the growth in our brand and the opportunity to align with F. One sustainability initiatives with them.

He talked about meaningful success in securing new whether the new sponsors and we have coffee in Alberta come in pipeline.

All eyes.

Now in Las Vegas, as we come down to the Grumpy weekend.

Why do they see itself would be a spectacle. It does also generates the excise didn't always the benefits the insider F. One ecosystem through the increased commercial link that's found awareness and broader brand value.

Finally students will be unparalleled. The team has continued to invest in creative offering for its fan, including announced with the window with club a first of its kind of a membership program that was the beauty Las Vegas growth rate.

The program is designed for the F1 enthusiast and we provide members with an unparalleled hospitality experience, including exclusive access to location within the pit building, bespoken services and incredible cuisine. Members will also enjoy year-round benefits to traditional F1 races and services to all over Wynn properties. As part of our partnership with the brand new Sphere, we will be taking over the Exosphere from Wednesday to Sunday, all race weekend, to display a combination of unique partners F1 and Las Vegas Grand Prix content. The team in Las Vegas led by Renee Wilm, has already secured a number of new partnership in addition to the previously mentioned Americas first deal. With the agreements announced this quarter, the Las Vegas Grand Prix has now secured over 20 partnership to date for the marquee event.

Members will also enjoy year round benefits to it.

So in that four races and services to all over when properties are.

As possible with pop issue with the brand new sphere, we will be taking over the exosphere from Wednesday through Sunday, all race weekend to display a combination of unique partners F. One and Las Vegas were picked up.

The team in Las Vegas led by Renee will.

Secured a number of new partnership in addition to the previously mentioned in the medical space deal.

With the agreements announced this quarter the Las Vegas Grand Prix is now secured over 20 partnership to date for the marquee event.

We are committed to raising the Las Vegas in the long-term. The total local economical benefit of the Grand Prix this year is expected to reach over $1.2 billion, which includes the direct spend from F1 to put on the race, the incremental spend by visitors and the input of suppliers and businesses. In addition, the Las Vegas Grand Prix will generate estimated $25 million that would be allocated to K-12 public school and is developing the STEM program that will be implemented in the Clark County School district in the coming years. Perhaps, our future F1 engineer would be borne out of this.

Businesses.

In addition, the Las Vegas property will generate estimated $25 million that would be allocated to K 12 public school and he is developing that's 10 program that will be implemented in the Clark County School district in the coming years.

Our future that's one engineer would be born out of this.

Finally, F1 continues to progress our sustainability and diversity and inclusion efforts. F1 academy completed its debut season in Austin last month. Congratulations to Marta Garcia on her victory and as we promised, she has now secured a fully funded seat with Prema Racing in the FRECA seaters, underlining our determination to ensure the best in the Academy seaters move upwards through the system. The F1 Academy finale was broadcasted live in over 100 territories, marking a significant extension of coverage. These demonstrate the support of our brokers partners and their commitment in bringing F1 Academy to both existing and new generation F1 fan who can be inspired by these incredible racing talent.

And as we promise she has now secured a poll found that seat with claim erasing the efficacy. This underlining our determination to ensure the best and the Academy see this move upward to the system, They're flying Academy site. A finale was broadcast live in over 100 territories, marking a significant attention.

<unk> coverage.

These demonstrate the support the level of brokers partners and their commitment in bringing that's one of the telling me to both existing and new generation. That's why I'm fun can be inspired by these incredible recent tablet.

Additionally, our ambition effort into the development of 100% advanced sustainable fuel are advancing well. Just last week, our partner Aramco, announced that they will start operating two plants to produce synthetic fuel by 2025. Our partnership with DHL to use biofuel truck across the European leg of the season was highly successful. They reduced emission by an average of 83% compared to the diesel driven trucks. The use of biofuel will continue into 2024 and beyond and we are excited about the insights we are gaining this year as we're exploring further opportunity in the connection with DHL.

Cross the European leg of the season was highly successful.

They reduce admission by inevitably over 83% compared to the diesel driven trucks they.

They use a biofuel.

We are continuing to 2024 and beyond and we are excited about the insights. We are gaining this year I states for actively exploring further opportunity in the connection with DHL.

We have only three races left in the record-breaking season. I want to thank our F1 family--FIA, fans, teams, partners and shareholders to all of their support and enthusiasm this season. Our on-track excitement isn't done yet with the battle of constructors standing outside the first place likely to come down to the last round of racing. We hope you tune in to Brazil this weekend before we make our way to the now [inaudible] Las Vegas Grand Prix and then wrap the season up with that. I look forward to providing additional updates at Liberty's Investor Day next week. Avanti tutta, full speed ahead. And now, I will turn the call back over to Greg. Thank you, ciao.

Our own trucking siphoned isn't done yet with.

With the Buffalo constructor standing outside the first place likely to come down to the last round of racing we.

We hope you tune into Brazil. This weekend before we make our way today now go to Las Vegas from fleet and then wrap the season ended up with that.

I look forward to providing additional updates at Liberty's Investor Day next week Avanti to full speed ahead, and now I will turn the call back over to Greg. Thank you Joe.

Gregory Maffei - CEO, Liberty Media: Ciao, Stefano. And thank you, Stefano and Brian.

Some of you may have seen our release that Albert Rosenthaler is retiring after 20 years at Liberty. Many of you know who Albert is and how much value he's added for our shareholders. Most recently, he served as Chief Corporate Development Officer, previously he was Head of Tax--he never really relinquish that, as we know. Fortunately, he will remain a senior adviser. We do have a deep bench of talent, both on the corporate development and tax teams and we'll continue to grow in those areas, but I'm pleased that they--Albert will work with them and me to drive future investment opportunities and our tax strategies.

Many of you know, who Albert is and how much value he's added for our shareholders.

Most recently he served as Chief Corporate Development Officer previously he was head of tax and never really relinquish that as we know Fortunately he will remain a senior adviser we do have a deep.

Bench of talent, both on the corporate development and tax teams.

And we will continue to grow in those areas, but I'm pleased that they Albert will work with them and me.

To drive future investment opportunities and our tax strategies.

We look forward to seeing many of you at our annual Investor Day on Thursday, November 9th in New York. Additional information is available on our website, John Malone and I will be hosting our annual Q&A session. If you would like to submit questions in advance, you can email investorday@libertymedia.com. None of the questions could ask if there will be about comedy. We do appreciate your continued interest in Liberty Media and the Atlanta Braves Holdings.

None of the questions can ask if there will be about comedy.

We do appreciate your continued interest in Liberty media and the Atlanta Braves Holdings.

And with that operator, we will open the line for questions.

We will open the line for questions.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star 2 if he would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

A confirmation tone will indicate that your line is in the question queue.

You May press star two if he would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Yeah.

Our first question comes from the line of David Karnovsky with JP Morgan. Please proceed with your question.

David Karnovsky - JPMorgan Chase & Co, Research Division: Hey, thanks for the question. On Formula One payments--our team payments year-to-date--if we look at the implied figure for the full year, I think it's down a bit relative to where it was in August. Greg you noted significant launch in non-recurring costs related to Vegas, so I wanted to see if you've adjusted your expectation for the economics of the race in the first year.

Formula one payments our team payments year to date, if we look at the implied figure for the full year I think it's down a bit relative to where it was in August Greg you noted significant launch and nonrecurring costs related to Vegas. So wanted to see if you've adjusted your expectation for the economics of the race in the first year.

Gregory Maffei - CEO, Liberty Media: I'm going to comment a little on Vegas and then I'll let Brian reiterate some of his comments for hopefully clarity about how those payouts, team payouts can be misleading if looked at just on a quarterly basis. On the first point, yeah, I think Vegas is proving to be a bigger spectacle and more impactful than we had anticipated, but they also have proven to be initial startup costs. I outlined some of them--increased security, one-time things like the opening day ceremony; but there are other ones like consultants that help us set it up, permitting costs that were unusual and the like, so there are a bunch of initial costs that are probably higher than we had originally estimated. I remain very bullish--we remain very bullish--on, as I said the impact of Formula One overall by Las Vegas, and the potential for this race to be a profitable exercise itself.

Brian reiterate some of his comments or hopefully clarity about how those payouts team payouts.

Can be misleading if looked at just on a quarterly basis.

On the first point, Yeah, I think Vegas is proving to be a bigger spectacle and more impactful than we had anticipated, but theyre also have proven to be initial startup costs I outlined some of them are increased security.

One time things like the opening ceremony, but there are other ones like consultants that help us set up a permanent costs that were unusual and the like so there are a bunch of initial costs that are probably higher than we had originally estimated I.

I remain very bullish we remain very bullish on as I said the impact of Formula one overall.

By Las Vegas, and the potential for this race to be a profitable exercise itself.

Yeah and just, you know, year-to-date we're running at 64.6%, as you rightly noted out. You can see an implied decline in the overall team payment for the year but those are covered by what Greg noted, but Q2 and Q3 tend to have a higher percentage team payment than what we typically see for the full year just because of that higher mix, the European races that have lower economics versus flyaways. So to say, in other ways, as we come into some of the races that have higher revenue, one might expect that the payout ratio will be higher, payoffs to the team's but a lower percentage overall so that this quarter's may not be indicative of the full year number.

Brian J. Wendling - Chief Accounting Officer & Principal Financial Officer, Liberty Media: Yeah and just, you know, year-to-date we're running at 64.6%, as you rightly noted out. You can see an implied decline in the overall team payment for the year but those are covered by what Greg noted, but Q2 and Q3 tend to have a higher percentage team payment than what we typically see for the full year just because of that higher mix, the European races that have lower economics versus flyaways.

You can see you can see it imply a decline in the overall team payment for the year, but those are covered by what Greg noted, but Q2 and Q3 tend to have a higher percentage team.

<unk> payment than what we typically see for the full year, just because of that higher mix.

The European races that have lower economics versus flyways, so to say another way as we come into some of the races that are.

Gregory Maffei - CEO, Liberty Media: So to say, in other ways, as we come into some of the races that have higher revenue, one might expect that the payout ratio will be higher payoffs to the team but a lower percentage overall, so that this quarter's may not be indicative of the full year number.

Have higher revenue one might expect that the payout ratio will be higher payoffs the team's buddy.

A lower percentage overall.

So that this quarters may not be indicative of the full year number.

Okay that helps.

David Karnovsky - JPMorgan Chase & Co, Research Division: Yeah and just sticking with Vegas for a second, it looks like there is a possibility of a labor strike next week at the hotels. Obviously, this could resolve before the race but how are you thinking about the potential impact should a work stoppage go through?

Just sticking with Vegas for a second it looks like there is a possibility of a labor strike next week at the hotels, obviously this could resolve before the race, but how are you thinking about the potential impact should have a work stoppage go through.

Uh huh.

We have worked with the unions and I believe our race will not be impacted directly, we are obviously watching what impact that may have on the overall Las Vegas market. Thank you.

Gregory Maffei - CEO, Liberty Media: We have worked with the unions and I believe our race will not be impacted directly, we are obviously watching what impact that may have on the overall Las Vegas market.

Grace will not be impacted directly we are obviously watching what impact that may have on the overall Las Vegas market.

Thank you.

David Karnovsky - JPMorgan Chase & Co, Research Division: Thank you.

Operator: Thank you. Our next question comes from the line of Ben Swinburne with Morgan Stanley. Please proceed with your question.

Ben Swinburne - Managing Director and Head of U.S. Media Research, Morgan Stanley: Thanks, good morning. Congratulations to Albert and I guess the IRS.

Congratulations to Albert.

And I guess the I R S.

Gregory Maffei - CEO, Liberty Media: Oh, he's not quite done yet we're kind of--thank goodness, we're gonna to keep him around so I don't have to say goodbye to him yet, but go ahead, I'm sorry.

Ben Swinburne - Managing Director and Head of U.S. Media Research, Morgan Stanley: No problem. Greg, just to put a finer point on it, I think people want to know--are you guys still expecting this sort of approaching $500 million of revenue and a race weekend that'll be within the top five free [inaudible] EBITDA type numbers or are you changing that perspective today?

Greg just to put a finer point on it is that I think people want to know are you guys still expecting you know this sort of approaching $500 million of revenue and top a race weekend that'll be.

Within the top five <unk> EBITDA type numbers or are you changing that perspective today.

A couple of thoughts. I think those revenue numbers approaching, that's still a reasonable estimate on profitability. I think I noted we've seen some one-time and startup costs that may have been larger than anticipated, but remembering how this is impactful to us, not only directly but indirectly. This is a very profitable race for us. As far as being measured as a top five, obviously, we don't tell the world what the top five are but we have noted that this one will have that impact. I still think that's true, particularly when you look at the bottom line for FWONK, we'll have that impact overall and I think that we will see that profitability, as I noted, once we get past some of these initial startup costs will--and we optimize-- it will increase. Let's be clear, this year we optimized for

Gregory Maffei - CEO, Liberty Media: A couple of thoughts. I think those revenue numbers approaching, that's still a reasonable estimate on profitability. I think I noted we've seen some one-time and startup costs that may have been larger than anticipated, but remembering how this is impactful to us, not only directly but indirectly. This is a very profitable race for us. As far as being measured as a top five, obviously, we don't tell the world what the top five are but we have noted that this one will have that impact. I still think that's true, particularly when you look at the bottom line for FWONK, we'll have that impact overall and I think that we will see that profitability, as I noted, once we get past some of these initial startup costs will--and we optimize-- it will increase. Let's be clear, this year we optimized for being there, being on time and having a great race. That's not to say we won't have some of that objectives next year but I think we'll be able to optimize on other variables as well and increase profitability.

I think those revenue numbers approaching that's still a reasonable estimate on profitability I think I noted you know we've seen.

Some one time and startup costs that may have been larger than anticipated, but remembering.

How this is impactful to us not only directly but indirectly.

This is a very profitable race for us.

As far as being measured as a top five obviously, we don't tell the world what the top five are but we have noted that this one will have that impact I still think that's true, particularly when you look at the bottom line for fun.

We'll have that impact overall and I think that.

We will see that profitability as I noted once we get past some of these initial startup costs will and we optimize.

It will increase let's be clear this year, we optimized for <unk>.

Let's be clear, this year we optimized for being there, being on time and having a great race. That's not to say we won't have some of that objectives next year but I think we'll be able to optimize on other variables as well and increase profitability.

Being there being on time and having a great race.

That's not to say, we won't have some of that objectives next year, but I think we'll be able to optimize on other variables are well and increased profitability.

Ben Swinburne - Managing Director and Head of U.S. Media Research, Morgan Stanley: Okay, thank you. And then you made a comment, Greg, at a conference recently, acknowledging that kind of--pose the Disney-Charter thing and just higher interest rates in the world we're in. You know, sports rights inflation are probably going to be impacted, you guys just announced DAZN deal, there was the Apple story out there that you probably won't comment on--but can you guys just give us your perspective on what the market feels like right now for sports rights as a seller and whether the DAZN deal is an indication of the direction ahead as we think about forecasting your businesses that are in the sports business? Thank you.

I think acknowledging that kind of post the Disney charter thing and just higher interest rates in the world. We're in the sports rights inflation are probably going to be impacted you guys. Just announced this zone deal. There was the Apple story out there that you probably won't comment on but can you guys can you just give us your.

Perspective on what the market feels like right now for sports rights as a seller and whether the <unk> deal as an indication of.

The direction ahead, as we think about forecasting your business your businesses that are in the sports business. Thank you.

There are really a couple of variables here I mean, if your. A fully distributed and more stable. Sports property, there are certainly trends about fragmentation of the market and overall pricing that might give you pause. Nonetheless, you know we've seen pretty good increases at some properties. We're in somewhat of a different position and I think Ben your focus rightly on the U S, where we're still relatively nascent. And our product is gaining traction and our audiences are growing. Dramatically, so I think I feel very comfortable with the F. One. Renewals. Much more than I do with the overall market. There are a lot of factors in the overall market you know well the fragmentation.

Gregory Maffei - CEO, Liberty Media: There are, really, a couple of variables here. I mean, if you're a fully distributed and more stable sports property, there are certainly trends about fragmentation of the market and overall pricing that might give you pause. Nonetheless, we've seen pretty good increases at some properties. We're in somewhat of a different position and I think, Ben, your focus rightly on the US, where we're still relatively nascent and our product is gaining traction and our audiences are growing dramatically. So, I think I feel very comfortable with the F1 renewals much more than I do with the overall market.

A fully distributed and more stable.

Sports property, there are certainly trends about fragmentation of the market and overall pricing that might give you pause.

Nonetheless, you know we've seen pretty good increases at some properties. We're in somewhat of a different position and I think Ben your focus rightly on the U S, where we're still relatively nascent.

And our product is gaining traction and our audiences are growing.

Dramatically, so I think I feel very comfortable with the F. One.

Renewals.

Much more than I do with the overall market. There are a lot of factors in the overall market you know well the fragmentation.

Gregory Maffei - CEO, Liberty Media: There are a lot of factors in the overall market you know well, the fragmentation to find scale and if you're a property trying to decide between how you get paid and reach--and that is always a challenge to be managed--that will be made more difficult with the fragmentation in the market. But on the other side, things like the SAG strike, things like the continued increase in cost of scripted content, do make sports still a very desirable place to be and a place where scale can be reached. There are a bunch of countervailing trends that make me [inaudible] on the whole market, but still very bullish on F1.

To find scale and if you have a property in trying to decide between how you get paid in reach and.

That is always a challenge to be managed that will be made more difficult with the fragmentation in the market.

But are you there on the other side you know.

Things like the Sag strike things like the continued increase in cost of scripted content do make sports still a very desirable place to be in a place where scale can be reached so.

There are a bunch of countervailing trends that are make me Matt.

On the whole market, but still very bullish on F. One.

Ben Swinburne - Managing Director and Head of U.S. Media Research, Morgan Stanley: Is Europe tougher than the US? How would you compare those?

Would you compare those.

I think the reality is, most of the trends that are negative are further along in the US than in Europe. Okay, but a lot of cases, Ben as you know they how what sports rates get bid largely a function of which distributor in the market needs the product or once the product and it could be. Where there are multiple bidders youre going to do very well and where there are fewer bidders you will do less well than that may almost be unrelated to what is going on in the market in that particular geography.

Gregory Maffei - CEO, Liberty Media: I think the reality is, most of the trends that are negative are further along in the US than in Europe.

I I think the reality is most of the trends that are negative or further along in the U S and in Europe.

Okay, but a lot of cases, Ben as you know they how what sports rates get bid largely a function of which distributor in the market needs the product or once the product and it could be. Where there are multiple bidders youre going to do very well and where there are fewer bidders you will do less well than that may almost be unrelated to what is going on in the market in that particular geography.

Ben Swinburne - Managing Director and Head of U.S. Media Research, Morgan Stanley: Okay,

Gregory Maffei - CEO, Liberty Media: But a lot of cases, Ben, as you know--how, what sports rates get bid, largely a function of which distributor in the market needs the product or wants the product. And it could be a market where there are multiple bidders, you're going to do very well and where there are fewer bidders you will do less well and that may almost be unrelated to what is going on in the market in that particular geography.

Okay, but a lot of cases, Ben as you know they how what sports rates get bid largely a function of which distributor in the market needs the product or once the product and it could be.

Where there are multiple bidders youre going to do very well and where there are fewer bidders you will do less well than that may almost be unrelated to what is going on in the market in that particular geography.

Alright. Thanks, so much thank you.

Ben Swinburne - Managing Director and Head of U.S. Media Research, Morgan Stanley: Alright. Thanks so much.

Thanks, so much thank you.

Gregory Maffei - CEO, Liberty Media: Thank you.

Yeah.

Operator: Thank you. Our next question comes from the line of Bryan Kraft with Deutsche Bank. Please proceed with your question.

Bryan Kraft - Deutsche Bank AG, Research Division: Hi, good morning. Yes, I want to ask a couple, if I could. Greg what do you think that timeline will look like to reach an agreement with the special committee of Sirius--assuming you do reach one. And whether you choose to answer that question or not, I was wondering if you could maybe address the second one, which is, if you do reach an agreement--once that agreement has been reached--what would be the key milestones and the probable timing to close the spin and merge. And then separately, I just wanted to ask you about Quaint events. Once you close that acquisition, are there significant advantages to F1 from owning the asset or is it more of an opportunistic acquisition to pursue growth opportunities outside of F1. Thanks.

Yes, I want to ask a couple if I could Greg what.

What do you think that timeline will look like to reach an agreement with the special committee of serious assuming you do reach one and whether you choose to answer that question or not I was wondering if you could maybe address the second one which is if you do reach an agreement once that agreement has been reached what would be the key milestones and the probable timing to close.

The spin and merge.

And then separately I just wanted to ask you about quaint events. Once you close that acquisition are there significant advantages to have one from owning the asset or is it more of an opportunistic acquisition to pursue growth opportunities outside of that one thanks.

Gregory Maffei - CEO, Liberty Media: Okay, that's a lot, Bryan. Alright, let's start with--I already said I'm not going to comment any further on negotiations, timing or the like. If a deal is reached, I think it will require a shareholder vote; likely the structure of the shareholder vote on the LSXM side, the structure on the FXSM side, given our high equity ownership and the structure of how they work their charter and bylaws, will be quicker. But there will also be the typical regulatory SEC matters and FCC matters that likely would have to be cleared, so I would still expect several months delay even post any deal that is reached.

Negotiations timing or the like if a deal is reached I think it will be require.

A shareholder vote likely the structure of the shareholder vote on the <unk> side the structure on the <unk> side, given our high equity ownership and the structure of how they work their charter and bylaws will be quicker, but there will also be the tip of typical regulatory SEC.

<unk> and FCC matters that likely would have to be cleared so I would still expect several months delay even post a any deal is reached.

On Quint.

Uh huh.

On Quint--I think we're excited about Quint for many reasons and I'll let either Stefano or Renee, who both have views added, we're excited because of what it can do for us. One of the trends that we are pushing forward in Formula One is understanding our customers better and really having a direct connection. And so many things that we're doing, whether it be the app or Las Vegas or Quint, allow us to better understand our customers and their needs and desires. And I think that's a continuing trend you will see that will add power to the F1 ecosystem and allow us to do much more.

Stefano or Rene who both have views added, but we're excited because of what it can do for us.

One of the trends that we are pushing forward in formula one is understanding our customers better and really having a direct connection and so many things that we're doing whether it be the app or Las Vegas, or quint allow us to better understand our customers and their needs and desires.

And I think Thats, a continuing trend you will see that will add power to the F. One ecosystem and allow us to do much more.

Quint is important because of how they touch those customers--some of our best customers--and how we can utilize their talents to grow in our understanding of our existing customer base but also expand that customer base. The opportunity outside of F1 is also very interesting, I mentioned some of the places where they are--at NBA, Churchill Downs. We think there are many sporting events, many live events that could benefit from Quint-type experiences and we think Liberty can be in a position potentially to help them reach out to some of those leagues and opportunities. So we're excited both for what it can do for F1 and what we can help do together, hopefully in the outside world of sports.

The opportunity outside of Epsilon is also very interesting I mentioned some of the places where they are at M. B a Churchill downs.

We think there are many sporting events, many live events that could benefit from Quint type experiences and we think liberty can be in a position potentially to help them reach out to some of those leagues and opportunities. So we're excited both for what it can do for F. One.

And what we can help do together hopefully in the outside World Sports Stefan.

Stefano, do you want to add anything?

Stefano Domenicali - President & CEO, Formula One: No. I think, Greg, that you touched exactly the point--at least for Formula One for sure. The need of understanding better our customer and the growth of the requests that we have in all around the world, it's related to the experience and this acquisition will allow us to talk with them better and to offer them better products and better things that will be that will enable them to be closer to our F1 world.

That that will be that will enable them to be closer to 12 O F. One world.

Bryan Kraft - Deutsche Bank AG, Research Division: Okay. Thanks to you both. Greg, if I could ask one follow up, just on the first one. I think you mentioned FCC, as in Federal Communications Commission matters. I guess my understanding is, there would be no HSR approval needed because you already have [inaudible] control. Is there an approval needed, how should we think about what the FCC's role would be?

I guess my understanding is there would be no HSR approval needed because you already have or control.

Is there is there an approval needed you know what how should we think about what the FCC is raw would be.

My understanding is that--Renee, you want to go? Yeah, I'm happy to. It'd be very much a pro forma application process, likely done within 45 to 60 days, is what we're expecting. I think the longer pole in the tent will be the SEC review, which to Greg's point should take a few months, maybe 4 to 6 months to get the entire thing done after we have an announcement.

Gregory Maffei - CEO, Liberty Media: My understanding is that--Renee, you want to go?

My understanding is is that whenever you want to go.

Renee Wilm - Chief Legal and Administrative Officer, Liberty Media: Yeah, I'm happy to. It'd be very much a pro forma application process, likely done within 45 to 60 days, is what we're expecting. I think the longer pole in the tent will be the SEC review, which to Greg's point should take a few months, maybe 4 to 6 months to get the entire thing done after we have an announcement.

Two it would be very much a pro forma application process.

Done within 45 to 60 days is what we're expecting I think the longer pole in the 10th will be the SEC review, which to Greg's point to take a few months, maybe four to six months.

To get the entire thing done after we haven't announced it.

Bryan Kraft - Deutsche Bank AG, Research Division: Okay, great. Thank you so much.

Operator: Thank you. Our next question comes from the line of Vijay Jayant with Evercore. Please proceed with your question.

Vijay Jayant - Senior Managing Director/Partner, Evercore: Thanks. Question on the Las Vegas race, I'm assuming that the OpCo is paying the holding company as a promoter and Liberty Media spent money on the track and the land, sort of a promotion fee. So when, Greg, when you talk about the profitability of the Vegas race, are you assuming that includes, arguably, that payment to the OpCo--from the OpCo to the HoldCo? Or is it at the operating company that the profits you're sort of expecting from the race? Thanks.

Now on the Las Vegas race right.

I'm, assuming that the Opco is being the holding company as a promoter and Liberty media spend money on the track and the land.

Out of a promotion fees so when Greg when you talk about the profitability of the Vegas space are you assuming that includes Oh.

Do you believe that payment to <unk>.

The opco.

From from the Opco to Holdco or is it at the operating company you know that the profits you're sort of expecting from the race.

Gregory Maffei - CEO, Liberty Media: Well, Vijay, you are correct that there is that relationship. I think we are talking about the totality but also I think, overtime, how the OpCo will be a very profitable race as well. So, I think you can look at it both ways.

I think we are talking about are the totality, but also I think over time, how the op co will be a very profitable race as well. So I think you can look at it both ways.

Vijay Jayant - Senior Managing Director/Partner, Evercore: And then just, Stefano, you talked about the attendance at all these races. Can you sort of confirm that the Vegas race is sold out on ticketing?

Stefano you talked about you know the attendance at all of these ratios can you sort of confirm that the Vegas races sold out on ticketing.

I'd be happy to take that one. Hi, Vijay, it's Renee. We have a handful of tickets left and the demand is coming in in the last minute--which, knowing Vegas is a last-minute market--we did, in fact, hold tickets back for that purpose. So we are very excited and we will be filled out by the time of the event. Right, there's a lot of Los Angeles book for Las Vegas, relatively late which is. Part of our strategy.

Renee Wilm - Chief Legal and Administrative Officer, Liberty Media: I'd be happy to take that one. Hi, Vijay, it's Renee. We have a handful of tickets left and the demand is coming in in the last minute--which, knowing Vegas is a last-minute market--we did, in fact, hold tickets back for that purpose. So we are very excited and we will be filled out by the time of the event.

Right, there's a lot of Los Angeles book for Las Vegas, relatively late which is.

Gregory Maffei - CEO, Liberty Media: There's a lot of Los Angeles booked for Las Vegas relatively late which is, part of our strategy.

Part of our strategy.

Vijay Jayant - Senior Managing Director/Partner, Evercore: Great. Thanks.

Okay.

Operator: Thank you. Our next question comes from the line of Stephen Laszczyk with Goldman Sachs. Please proceed with your question.

Stephen Laszczyk - Vice President, Goldman Sachs: Hey, great. Thank you for taking the questions. Maybe just a follow up on the media strategy for F1 to the extent you'd be willing to add to Ben's question. I'd just be curious to better understand how you think through the pros and cons of entering a longer term exclusive global media rights deal with a single distributor. Just curious to the extent you think the Formula One IP could be well-suited for that type of structure over the long-term. And I have a follow up. Thank you.

I'd just be curious to better understand how you think through the pros and cons of entering a longer term exclusive global media rights deal with a single distributor.

Just curious to the extent you think the formula one IP could be well suited for that type of structure over the long term.

Thank you.

Okay.

Gregory Maffei - CEO, Liberty Media: Thanks for the question. I think we've tried to be consistent answering this. There's always a trade-off between reach and profitability. There are relatively few, if any, distributors today who have the global reach that individual players do in their respective markets. So there would be--you'd be thinking hard about that trade-off. And you can see that in some markets where we've actually tried to play both sides of that, where they made some of it's on broadcast and some of it's on pay, because we don't want to see all of our product behind the paywall which is not widely distributed. So I don't have a comment other than you're always going to wait that trade-off and it depends on how we feel about the maturity of the business and in each respective market and the length of deal we're willing to cut--in many cases, is dependent on how far we are on that curve.

We've tried to be consistent answering this.

As always a trade off between reach and profitability.

You know there are relatively few if any distributors today, who have the global reach that individual players do in their respective markets. So there would be you'd be thinking hard about that tradeoff.

And you can see that in some markets, where we've actually tried to play both sides of that where they made some of it's on broadcast and some of it is on pay because we don't want to see all of our product.

Behind the paywall in it which is not widely distributed so there that.

So I don't have a comment other than you're always going to wait that trade-off and it depends on how we feel about the maturity of the business and in each respective market and the length of deal we're willing to cut--in many cases, is dependent on how far we are on that curve.

I don't have a comment other than you're always going away that tradeoff and it depends.

It depends on what how we feel about the maturity of the business and in each respective market and the length of deal were willing to cut and in many cases is dependent on you know how far we are on that curve.

I would note, we've noted before, in the US we're fairly nascent. We try to keep a shorter-term deal partly because we think we will do better as time goes on. In other markets where it's more mature, you're willing to talk about more stability and there's benefit, in many cases, for the distributor to have more stability because they will be able to make a greater investment in the product promotion, et cetera if they know they have long-term. So you weigh all those factors.

In other markets, where it's more mature youre willing to talk about more stability and there was benefit in many cases for the distributor to have more stability because they will be able to make a greater investment in the product promotion et cetera. If they know they have long term. So you weigh all those factors.

Stefano Domenicali - President & CEO, Formula One: And if I may add, Greg, on that--correctly saying about this ratio between reach and profitability. The speed of this change is different from country to country, from region to region. And this is really, the reason why the media market today is quite complex but we do believe that with the mix that we have, we will take the advantage of the strategies we've put in place to date, that's we are very confident about.

It's all of the strategies in place to date, that's we are very confident about.

Stephen Laszczyk - Vice President, Goldman Sachs: Got it, thanks for that. And then maybe one on the sponsorship side, could you talk a little bit more about the the regional deal with American Express that you recently signed. Maybe the value you saw in each other, how to bring this deal on the table and if you think that could be a good template or framework for other payment providers or financial institutions on a more global basis? Thank you.

Other payment providers or financial institutions on a more global basis. Thank you.

Gregory Maffei - CEO, Liberty Media: I'll let Renee add, but I would note that one of the reasons why AMEX is unique is not only is it a great company, great brand, et cetera--with an audience and a customer base which fits very well with us--but also a case where, really, they came out in the regional basis because of the strength in wanting to be involved in Las Vegas. So it's a great example of Las Vegas leading us in broadening the base. It's also a case where using our digital capabilities, we're gonna be able to--for regional players--be able to show sponsorship capabilities and opportunities in our respective market or in a respective series of markets in a region because of those. Renee.

Note.

One of the reasons why Amex is unique is not only is a great company, great brand et cetera, with an audience and a customer base, which fits very well with us but.

But it also the case, where it really they came out in the regional basis because of the strength in wanting to be in loss involved in Las Vegas, which is a great example of Las Vegas, leading us and broadening the base.

It's also a case, where we're using our digital capabilities, we're gonna be able to for regional players to be able to show.

Sponsorship capabilities and opportunities in our respective market arent expect a series of markets in our region because of those Rene.

Renee Wilm - Chief Legal and Administrative Officer, Liberty Media: I would just add to that something Greg mentioned earlier, around the importance of data management and understanding who our fan base is. And being able to work with American Express on their pre-sale platform has really proven to not only help us move the hospitality early but also to get more visibility into who our fans are. So, we think this is going to be a great win across the board.

Stephen Laszczyk - Vice President, Goldman Sachs: Thank you.

Gregory Maffei - CEO, Liberty Media: Thank you.

Operator: Thank you. Our next question comes from the line of Stephen Glagola with PD Cowen. Please proceed with your question.

Our next question comes from the line of Steven <unk> with PD Cowen. Please proceed with your question.

Stephen Glagola - Vice President Equity Research, PD Cowen: Yeah, thanks for the question. Were these initial startup costs for Vegas fully captured in the increased CapEx guidance last quarter and what are your expectations for recurring annual maintenance CapEx for the Grand Prix Vegas?

<unk>.

Gregory Maffei - CEO, Liberty Media: I think we are not changing anything we said about CapEx from what we said last quarter. I think most of my comments were really directed at more OpEx and some of those costs that I mentioned like security, like the opening festival--opening ceremony, rather. I don't believe we are making any announcements today on CapEx. I would differentiate, there will potentially be--I don't think there's massive ongoing CapEx for maintenance--I'll make that statement. But there will be CapEx potentially for a year-round activation as we come up with new opportunities to take advantage of the facility. And we really have not captured or forecast that because we're still working on what that may look like, so we don't really have a number for you today or something to talk about because we are looking at a range of activation capabilities and candidly, we're focused on November 18th.

The opening Sir festival opening ceremony rather.

I don't believe we are making any announcements today on.

On Capex.

It would differentiate.

There will potentially be I don't think theres massive ongoing capex for maintenance I'll make that statement, but there will be capex potentially for a year.

But there will be CapEx potentially for a year-round activation as we come up with new opportunities to take advantage of the facility. And we really have not captured or forecast that because we're still working on what that may look like, so we don't really have a number for you today or something to talk about because we are looking at a range of activation capabilities and candidly, we're focused on November 18th.

Year round activation as we come up with new opportunities to take advantage of the facility and we really are not captured or forecast that because we're still working on what that may look like so we don't really have a number for you today or something to talk about because we are looking at a range of activation capabilities and candidly we're focused on November 18th.

Stephen Glagola - Vice President Equity Research, PD Cowen: Thanks, Greg, I appreciate that. And if I can just ask one more. Stefano, with the FIA approving Andretti last month, can you just give us any updates on your views with respect to adding an 11th team to the grid? How are you evaluating this and what are the potential gating items for you to incrementally more inclined to grant a mission or reject? Thank you.

Stefano would you definitely proving and Draggy last month can you just give us any updates on your views with respect to adding in <unk> to the grid now how are you.

Getting this and what are the potential gating items for you to get incrementally more inclined to granted mission or reject thank you.

Gregory Maffei - CEO, Liberty Media: I'll let Stefano answer that.

Stefano Domenicali - President & CEO, Formula One: Yeah. Okay, thanks. Thanks, Stephen. I mean, as you know there is a process that is in place. So as always, we don't have to give in anticipation, the FIA did this right role doing its first assessment. Now we're in the process of doing our assessment on the commercial and marketing side, as soon as these process will be finished, of course we will inform everyone accordingly. First of all, of course, sharing this info in the first stage [inaudible] with the FIA.

First of all of course sharing these aimed for in the first stage since with the FAA.

Stephen Glagola - Vice President Equity Research, PD Cowen: Okay. Thank you.

Okay.

Operator: Thank you. Our next question comes from the line of David Joyce with Seaport Research Partners. Please proceed with your question.

David Joyce - Senior Equity Analyst Media Sector, Seaport Research Partners: Thank you. I wanted to turn to the Liberty Live track, just wondering what your opportunities and constraints are there. Conceptually, what might be some logical next steps for the--might you buy a music venue that could allow you to spin that off in five years or might you do something like what you proposed to do with Sirius? And given that you've got such a discount at that equity, would that be something of interest, you think, with Live Nation to combine given that they've got a significant cash balance now? Thanks.

For the might you wouldn't buy music venue that could allow you to spend that often five years or might you do something like what you proposed to do with serious and yes given.

Given that you've got such a discount.

That equity would that be something of interest.

How do you think with live nation that combined given that they've got a significant cash balance now thanks.

Gregory Maffei - CEO, Liberty Media: Thank you, David. I think our strategies around Liberty Live are evolving. We do look at it as, as you've seen in the past, as something we'd be able to expand and grow. Creating an ATB there so that we could potentially have a spin down the road, that's always something Liberty wants to maintain optionality around. But our first goal would probably be to build a strategy in--and maybe in conjunction with Live Nation--around things that are incremental and additive that we could own, that we think are positive that could somewhere, potentially, be valuable to Live Nation as well. So, no plan or intent today on any of the above but we have ideas and are working through.

Our strategies around Liberty Libra evolving.

<unk>.

Do look at it is as you've seen in the past is something we'd be able to do.

Expand and grow.

<unk>.

Creating an ATB there so that we could potentially have a spin down the road.

It's always something Liberty wants to maintain maintain optionality around but our first goal would probably be too.

Build a strategy in in.

And maybe in conjunction with live nation around things that are incremental and additive that we could own there'll be we think are positive that could somewhere potentially be valuable to two.

Live nation as well so no plan or intent today on any of the above but we're we have ideas and are working through.

David Joyce - Senior Equity Analyst Media Sector, Seaport Research Partners: Thanks. And second, if I could. On the Atlanta Braves, on the RSN side of the equation, that's a significant revenue. The annual league that's coming from the RSNs, is there any update or any thoughts of how that could be replaced if needed either by the league or your own capabilities?

The Atlanta Braves on the RSM side of the equation, that's a significant revenue.

The annually because it's coming from the or a sense of is there any update or any thoughts of how that could be replaced if needed either by.

The league or your own capabilities.

Gregory Maffei - CEO, Liberty Media: Yes. Derek, do you want to handle that?

Derek Schiller - President & CEO, Atlanta Braves: Yeah, sure. So, obviously, there's ongoing legal with the situation so we don't want to go too far with what we can say on it. I think probably the best way to answer this is, we are continuing to deliver what we're expected to do under the terms of our agreement and up to this point in time they are--we expect that to continue.

Obviously, there's ongoing legal with the with the situations. So we don't want to go too far with what we can say on it I think probably the best way to answer this is <unk>.

We are continuing to deliver what we're expected to do under the terms of our agreement.

Up to this point in time they are.

Do you expect that to continue.

Gregory Maffei - CEO, Liberty Media: Yeah, Derek's way being more cautious than I would. I think our understanding is this is, among, if not the most profitable of Diamond's RSNs, reflecting the large territory that we have, the high demand that Derek and his team have built around the Braves and the relatively--not the highest payment among RSN payments, it is a very profitable RSN. So I do not believe they'll be rejected but given the strength of the territory and the strength of the Braves, people's interest in the Braves--I do believe we could replace that revenue stream or a good portion of it at least with other alternatives.

Reflecting the large territory, we have the high demand that Derek and his team have built around the Braves and the relatively.

Not the highest payment among the RSR payments. It is a very profitable our sense. So I do not believe there'll be rejected but given the strength of the territory and the strength of the Braves People's interest and embrace I do believe we could replace that revenue stream.

A good portion of it at least with other alternatives.

David Joyce - Senior Equity Analyst Media Sector, Seaport Research Partners: Thanks, Greg. Thanks, Derek.

Operator: Thank you. Our next question comes from the line of Jason Bazinet with Citi. Please proceed with your question.

Jason Bazinet - Managing Director, Citi: I just had a question on Formula One. You guys have accomplished so much with this asset since you bought it, you know, the concrete agreement, growing sponsorship, tweaking the calendar, increasing popularity of the sport. I would just be curious, over the next three to five years, other than getting to know your fan base better--which you mentioned--what do you think the top two or three opportunities that remain are?

The concrete agreement growing sponsorship tweaking the calendar.

<unk> popularity.

The sport.

Just be curious over the next three to five years other than getting to know your fan base better, which you mentioned what do you think the top two or three opportunities that remain are.

Look, I think we have three or four big revenue streams and I think all of them have upside. Starting with broadcast, the increased interest in the sport globally, but particularly in the US, have given us an opportunity with a broader range of distributors. And the increasing number of digital players who might enter the market and as they get broader awareness as sports players, our willingness to go with them only increases. So you've seen examples like DAZN, you're seeing things like Netflix coming and doing something with us around. golf and Formula One--admittedly small but an interesting start. All of those make us have opportunities there. In the races,

Gregory Maffei - CEO, Liberty Media: Look, I think we have three or four big revenue streams and I think all of them have upside. Starting with broadcast, the increased interest in the sport globally, but particularly in the US, have given us an opportunity with a broader range of distributors. And the increasing number of digital players who might enter the market and as they get broader awareness as sports players, our willingness to go with them only increases. So you've seen examples like DAZN, you're seeing things like Netflix coming and doing something with us around. golf and Formula One--admittedly small but an interesting start. All of those make us have opportunities there.

We have three or four big revenue streams, and I think all of them have upside.

Starting with broadcast.

The increased interest in the sport.

Globally, but particularly in the U S have.

Given us an opportunity with a broader range of distributors and the increasing number of digital players who might enter the market and as they get broader awareness as sports players our willingness to go with them only increases.

So you've seen examples like the zone, you're seeing things like Netflix coming and doing something with us around.

Golf and Formula one admittedly small, but an interesting start all of those make us have opportunities there in.

In the races, yes, we are not going to increase the number of races at--certainly at the pace, if at all, that we have--but in a perverse way, the fact that there is a limited supply and an increasing number of people who want a race and increasing number of cities or venues that want to race, have allowed us in many cases to utilize that limited supply to play off, raise the requirements, raise our prices. And promoters are doing far better, if you've seen--for example, how many people showed up at Austin, how many people are showing up. Increasing demand has made it so promoters are more profitable, have more scale and we're able to extract more money from them. Not in the victim way that some people would call it but because it's a better business for them and there are other players who want it if they don't want to play. In sponsorship, you're seeing us, have grown dramatically over the last several years--there's, I think, far more we can do. MX is a great example of moving from a world of just paint on the track to a digital experience to activation. Part of that is, again, understanding our customers better, all of those I think have an opportunity. And then hospitality.

The races.

Yes, we are not going to increase the number of races at certainly at the pace if at all that we have but.

In a perverse way. The fact that there is a limited supply and in an increasing number of people, who want a race and increasing number of cities or venues that want to race have allowed us in many cases to utilize that limited supply too.

They off.

<unk> raised the requirements raise our prices.

And promoters are doing far better if you've seen for example, how many people showed up in Austin, how many people are showing up decreasing demand has made it so promoters or more profitable have more scale and we're able to extract more money from them not in the victim way that some people would call it but because it's a better business for them and there are other players who.

In sponsorship, you're seeing us, have grown dramatically over the last several years--there's, I think, far more we can do. MX is a great example of moving from a world of just paint on the track to a digital experience to activation. Part of that is, again, understanding our customers better, all of those I think have an opportunity. And then hospitality. And Quint is a part of that, what we're doing, what we've been able to do increased the Paddock Club. Frankly, because of demand, how we've been able to increase prices at the Paddock Club. All of those give us range of opportunities in hospitality. So, I think all four revenue streams are healthy and have upside. Stefano, what did I miss? I think that are the least is already quite interested in food, but for sure you know the culture that we have seen about the AMEX.

If they don't want to play and sponsorship Youre seeing us have grown that dramatically over the last several years I think far more we can do <unk> is a great example of moving from a world of just paint on the track to a digital experience to activation part of that is on again understanding our customers better all of those I think have an opportunity and then hospitality.

And quint as a part of that what we're doing what we've been able to do increase the paddock club.

Frankly, because of demand how we've been able to increase prices at the Paddock club all of those give us I think range of opportunities in hospitality. So I think all four revenue streams are healthy and have upside it's definitely what did I Miss.

Stefano Domenicali - President & CEO, Formula One: I think that the list is already quite interesting and full but for sure, you know, the concept that we have seen about AMEX--the regionalization is another key factor of attracting new partners and these were going to be our strategy. But we do not forget that two other area for sure will be very important, licensing and merchandising. We just added a beginning of restructuring where we can really see potential of what we can do. I mean, we don't have to also underestimate the potential of being bigger on social and bigger on the awareness of the sport and being able to connect more and more with these new initiatives, with our fans. We will be able to provide services that of course we have to pay back for us. So an incredible time in front of us and that's the beauty of this portal that we are investing and really believing in it.

I think that are the least is already quite interested in food, but for sure you know the culture that we have seen about the omics.

Our regionalization is another key factor of attracting new partners and these were going to be our strategy, but we don't that's forget that there's two other that do it for sure will be very important these licensing and merchandising where we just added a beginning of restructuring where we can really see potential of of what we can do I mean.

I mean, we don't have to also underestimate the potential of being bigger on social and bigger on the awareness of the sport and being able to connect more and more with these new initiatives, with our fans. We will be able to provide services that of course we have to pay back for us. So an incredible time in front of us and that's the beauty of this portal that we are investing and really believing in it.

We don't have to also underestimate the potential of being bigger and on social and the beget on on the Alberta, the sport and being able to connect more and more with these new initiatives with our fence, we will be able to provide services that of course, we'd have to pay back for it. So I think had even more time in front of us and that's the beauty of this.

Part of that we are investing now really believing in it.

Jason Bazinet - Managing Director, Citi: Thank you.

Gregory Maffei - CEO, Liberty Media: I believe our last question.

Operator: Thank you. Final question comes from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your question.

Final question comes from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your question.

Barton Crockett - Managing Director & Senior Research Analyst, Rosenblatt Securities: Okay. Thanks for getting me on here. I was curious, Greg, about your thoughts about the opportunities for baseball, overall, to create a better streaming experience than the kind of fragmented circumstance that's developing right now with the teams doing their own kind of local streaming, their own local broadcast. Do you think over time, there should be some type of aggregation of the local team rights into a new streaming or an existing streaming platform to optimize kind of experience for a market opportunity, from a consumer experience perspective. Do you think that should happen, do you think it can happen, did you guys play a role in that to create value for your shareholders?

I was curious about your thoughts about the.

<unk> opportunities.

Sure.

Baseball.

Overall to create a better screening experience then.

Kind of fragmented.

Circumstance, that's developing right now with the team's.

Doing their own kind of local streaming their own local broadcast.

Do you think over time, there should be some type of aggregation of the law.

Local team rights into.

Streaming or an existing screening platform.

To optimize kind of experience for our market opportunity and from a consumer experience perspective.

That should happen do you think it can happen did you guys play a role on that to create value for your shareholders.

Gregory Maffei - CEO, Liberty Media: I'll comment then I'll let Derek add. You know, baseball was an innovator, with mlb.com, everything back to Bob Bowman that they did with BAMTech and much of that has been accrued to the benefit. And I think with the increased interest in the sport this year, all to the good. You're right that the local rights regime is complicated and how that has been divided has made probably some innovation more difficult over time. We, at various times, have looked at that and potentially partnering with the MLB to help on that, I think there are many plans out there being looked at. None has yet to come to pass, but there surely is demand in the sport. Derek, what would you add?

Derek at Baseball is was an innovator.

With MLB Dot com.

<unk> back to Bob Bowman that they did with Bam Tech.

And much of that has been accrued to the benefit and I think with the increased interest in the sport this year.

All to the good youre right that the local rights regime is complicated and and how that has been divided has made.

Some innovation.

More difficult over time, we at various times have looked at that and potentially partnering with the MLP to help on that I think there are many plans out there being looked at non is yet to come to pass, but there surely is demand in the sport Derek what would you add.

Derek Schiller - President & CEO, Atlanta Braves: Thanks, Greg. So what I would say, just on the macro level, not trying to get too far ahead of Major League Baseball or the Commissioner's Office in this but, you know, you think about baseball and maybe even ahead of that--live sports content, still very much in demand regardless of all the changes in fragmentation that's happening in the marketplace. So I think being in the live sports content business is certainly a very good thing. And then to baseball specifically, you've got 162 games, so there's an enormous amount of that content. The sport is extremely popular, as Greg mentioned, selling 70 million tickets this year and just all the other factors. So, from a macro perspective, the sport is very healthy and has great opportunity.

You know you think about baseball and maybe even ahead of that live sports content still very much in demand regardless of all the changes in fragmentation that's happening in the marketplace. So I think being in the live sports content business is certainly.

A very good thing and then.

To baseball specifically you know you've got 162 games.

So there's an enormous amount of that content.

The sport is extremely popular is as Greg mentioned, selling 70 million tickets this year and just all the other.

Doctors, so I think from a from a macro perspective. The sport is is very healthy and has great opportunity.

And you know looking at it from just the Braves lens, a little bit to Greg's earlier comments, we have a very large marketplace. We are significantly advantaged in that marketplace, especially against a lot of our peer sets. So there's a lot of opportunities and the disruption might happen but at the same time I think the opportunity for us and for the broader sport is certainly there.

A little bit to Greg's earlier comments, we have you know a very large marketplace. We are significantly advantaged in that marketplace, especially against a lot of our peer sets and.

So theres a lot of opportunity and the disruption might happen, but at the same time I think the opportunity for us and for the broader sport is certainly there.

Okay.

Barton Crockett - Managing Director & Senior Research Analyst, Rosenblatt Securities: Okay, great. Thank you.

Gregory Maffei - CEO, Liberty Media: Thank you all for your interest in Liberty Media, I think that was our last question. We look forward to seeing--and the Atlanta Braves, don't mean to slight our Braves friends. I'm so used to them being part of the family, I don't have to call them out separately. Thank you for your interest, as I said, we look forward to seeing many of you next week in New York and if not, on our next earnings call. Thank you.

Brace friends are so used to being part of the family I don't have to call them out separately.

Thank you for your interest as I said, we look forward to seeing many of you next week in New York and if not on our next earnings call.

Okay.

Operator: This concludes today's teleconference, you may now disconnect your lines at this time. Thank you for your participation.

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