FWONA

Welcome to Liberty Media Corporation's 2026 Q1 earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session.At that time, if you have a question, please press star one on your telephone. As a reminder, this conference will be recorded today, May 7th. I would now like to turn the call over to Hooper Stevens, SVP, Investor Relations. Please go ahead.

Thank you very much for joining us this morning, for Liberty Media's first quarter 2026 earnings call. As we get started, I'd like to remind you 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 forms 10-K and 10-Q filed by Liberty Media with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's expectations with regard thereto, or any change in events, conditions, or circumstances on which any statement is based.

On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including Adjusted OIBDA, constant currency for MotoGP. The required definitions and reconciliations for Liberty Media are on Schedule 1, and MotoGP Schedule 2 can be found at the end of the earnings press release issued today, which is available on our IR website. Speaking on today's call, we have Liberty's President and CEO, Derek Chang; Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling; Formula One's President and CEO, Stefano Domenicali; and MotoGP's CEO, Carmelo Ezpeleta. Other members of the management will also be available for Q&A. With that, I'll turn it over to Derek.

Thank you, Hooper. Good morning, everyone. When we spoke with you in February, we framed 2026 around three priorities: sustaining Formula One's momentum, positioning MotoGP for long-term growth, and remaining disciplined and opportunistic with our capital. Our framework remains intact. We are seeing good progress across the portfolio. We delivered strong financial results this quarter at both F1 and MotoGP. Starting with Formula One, the sport continues to demonstrate the strength and resilience of its global platform. We made the difficult but appropriate decision, together with the FIA and local promoters, not to proceed with the Bahrain and Saudi Arabian Grands Prix in April, given the situation in the Middle East. The well-being of everyone in F1 comes first. We always manage the calendar with that principle in mind.

While that creates a near-term financial impact, it does not change our confidence in the long-term trajectory of the sport. We will be thoughtful in our approach, we will continuously evaluate the calendar this year. As Stefano mentioned to Bloomberg News last week, it might be possible to reschedule one race toward the end of the season. Formula One remains supported by strong fan demand, deep commercial partner interest, attractive media rights dynamics, and a stable long-term foundation with the new Concorde Agreement. The early season has also reinforced the value of the investments being made around the fan experience and distribution. In the U.S., Apple's first season as our exclusive media rights partner is underway, the initial results have been promising.

Our partnership with Apple and its Tech Forward platform is already delivering early innovative enhancements to our F1 product, with multi-view, data feeds, and onboard features creating a more engaging viewing experience for our fans. Viewership increased through the first three races of the year. Fan engagement is up. We're attracting a younger and more female audience, and we're seeing expanded reach across the vast Apple ecosystem. Alongside Apple, we rolled out a series of dedicated marketing activations that significantly amplified the Miami race across both the city and the country, including nationwide Apple Store retail pit stops, Apple Maps integration, and the launch of new original F1 programming over race weekend. We're extremely pleased that the high energy from our U.S. fan base and the broader race week has become a meaningful cultural and commercial moment for the sport in the U.S.

At MotoGP, the first full season under Liberty Media ownership is giving us even greater conviction in the opportunity. The sport is delivering compelling racing with the calendar evolving to expand its global footprint, including the return to Brazil this year. We are also beginning to broaden the ecosystem around MotoGP through initiatives like the Harley-Davidson Bagger World Cup, which brings a distinctive new format and lifestyle brand into the MotoGP weekend experience. The broadcast of the U.S. Grand Prix on Fox reached an average audience of 500,000. This is an increase over last year on cable and an increase from the last time it was on broadcast in 2023. We have also seen our social media followers in the U.S. increase 16% since January 2025, which is an encouraging indicator of growing engagement in the U.S. market.

The strength of MotoGP is its compelling identity, fierce racing, extraordinary athletes, passionate fans, and a unique culture. Liberty's role is to help provide the commercial focus, operational support, and long-term investment discipline that can allow that identity to reach a broader global audience. That means building capabilities carefully, strengthening the event experience, improving fan engagement, expanding commercial partnerships, and sharing learnings across the portfolio where they are relevant. Following the Liberty Live split off, our portfolio is centered around two world-class boards with strong brands, valuable global rights, and multiple long-term growth levers. We will remain thoughtful in our capital allocation approach as we support our operating companies as they invest in growth, we will evaluate additional opportunities to deploy our capital. Brian will cover the financial results in more detail. Stefano and Carmelo will provide deeper dive on Formula One and MotoGP.

We remain confident in the strategy we laid out earlier this year. Formula One has a proven global platform for significant momentum. MotoGP has meaningful long-term upside, and Liberty is well-positioned as we build the next chapter of growth. Now I'll turn it over to Brian.

Thanks, Stefano Domenicali, good morning, everyone. As a reminder, each quarter in 2026 for the Formula One business will reflect an incomparable race count and mix, with the exception of the fourth quarter. Additionally, due to our decision to not hold the Saudi Arabian and Bahrain Grand Prix in April, results in the first quarter reflect a 22 race calendar this year. The second quarter will be the most impacted, with only 5 races expected to be held this year versus 9 races held during the second quarter of 2025. The change in the race calendar did affect the pro rata recognition of revenue and team payments in the first quarter.

We expect the largest impact from not holding the 2 races in April to be from the loss of race promotion revenue, certainly, followed by hospitality and some minimal impacts to race-specific sponsorship revenue. We do expect relatively limited impact to sponsorship revenue as we anticipate the ability to offset some of that exposure with other races later in the season. On the expense side, we will now recognize most of the expenses related to the disrupted races and the net impact to F One will flow through the team prize fund calculation. Similar to revenue recognition, projected team payments in each quarter will be recognized pro rata over 22 races instead of 24.

Now, looking at the results for the first quarter, most of the strong growth in Q1 year-over-year results is due to 1 more race being held in the first quarter compared to the prior year period. The change in the pro rata season-based revenue recognition and underlying growth in the business. The first quarter of 2026 held 3 races compared to 2 in the first quarter of last year, with Japan included in the current year period, but not in the prior year. For the first quarter, revenue grew 53%. Adjusted OIBDA grew 102%, driven by the extra races held in growth across all revenue streams from underlying contractual fee increases.

Media rights and sponsorship revenue growth was driven by the calendar variance related to recognition of season-based revenue, with 3 out of 22 races recognized in the quarter, or approximately 14% of season-based revenue, compared to 2 out of 24 races, or approximately 8% of season-based revenue recognized during the prior year period. Sponsorship revenue also increased due to revenue growth from new sponsors, including Standard Chartered. Other revenue grew due to higher hospitality, freight, and travel revenue from 1 additional event held. Hospitality revenue growth was also driven by strong underlying Paddock Club performance and other premium product growth, licensing revenue, and revenue generated after the reopening of Grand Prix Plaza in Vegas at the end of January. Adjusted OIBDA increased during the first quarter, driven by strong revenue growth discussed above, outpacing expense growth.

Increased operating expenses included higher team payments and expenses associated with hospitality, freight, and travel costs from the additional race held, as well as an increase in new premium product offerings and higher freight, travel, and commission and other partner servicing costs. The increase in SG&A expense was primarily due to unfavorable currency exchange rates and higher personnel and technology costs, offset by lower marketing expenses. Team payments as a percent of pre-team share Adjusted OIBDA were 51.7% for the first quarter of 2026. For the full year, we continue to expect to see an average of roughly 200 basis point improvement in leverage, in line with the average we've seen over the past four years. After 2026, for the remainder of the term of the new Concorde Agreement, we expect the payout percentage to remain relatively stable.

A reminder that team payments are best analyzed on a full year basis due to the quarterly fluctuations in team payments as a % of Adjusted OIBDA. Looking at MotoGP, just a quick reminder that we closed the acquisition on July 3 of last year. Our financial results prior to the date of acquisition are presented on a pro forma basis as though the transaction occurred on January 1, 2024. A trending schedule will be posted to our website after the 10-Q is filed, including results in U.S. GAAP for historical periods. The majority of MotoGP's revenue and costs are euro-denominated, and as such, are subject to translational impacts from foreign exchange fluctuations. In the following discussion of results, I'll focus on constant currency results.

Year-over-year comparisons are impacted by the mix of races, and MotoGP flyaway races generally carry higher costs, including freight, travel, and IRTA fees. MotoGP held three races in the first quarter, both this year and the prior year. Revenue increased at MotoGP during the first quarter due to the race mix, and increased sponsorship revenue, slightly offset by a small reduction in media rights revenue. Adjusted OIBDA also grew during the first quarter as revenue growth outpaced expense growth. Cost of MotoGP motorsport revenue increased due to the impact of higher freight expenses from race mix and increased fuel costs. Looking briefly at corporate and other results for the year, revenue was $6 million, which relates to rental income generated by the Grand Prix Plaza in Las Vegas.

Corporate and other adjusted OIBDA was a loss of $7 million and includes Grand Prix Plaza rental income and corporate expenses. At quarter end, Liberty Media had cash and liquid investments of $1.3 billion, which includes $862 million of cash at F1 and $186 million of cash at MotoGP. Total principal amount of debt was approximately $5 billion at quarter end, which includes $3.3 billion of debt at F1 and $1.2 billion of debt at MotoGP, with just under $500 million at the corporate level. F1's $500 million revolver and MotoGP's EUR 100 million revolver both remain undrawn. At quarter end, Liberty Media's net leverage was 3 times.

As a result of not holding two races in the Middle East in April at F1, we expect there could be a modest increase in trailing 12-month leverage during the second quarter of this year. F1 and MotoGP are in compliance with their debt covenants at quarter end. With that, I will turn it over to Stefano to discuss Formula One.

Thanks, Brian. The 2026 season is off to a captivating start as we kick off this next chapter in F1's history with new regulations, new teams, and new winners on the podium. Congratulations to Kimi Antonelli, who became the youngest driver in F1 history to lead the world championship and taking 3 consecutive races win after winning the Chinese, Japanese, and Miami Grand Prix. As you know, we made the decision to not go ahead with the Bahrain Grand Prix and the Saudi Arabian Grand Prix as planned in April to ensure the safety and security of everyone in the sport during a very fluid and uncertain time. Saudi Arabia and Bahrain have been fantastic long-term partners, and we look forward to being back with our fans there as soon as we can.

We were extremely excited to be back racing in Miami last weekend, and 2026 has represented the start of an incredible new era for our sport. The first four races of the season have all sold out. Social media engagement is up year-over-year and early TV data shows growing audience worldwide. Fan research also indicates a very positive response to the on-track spectacle, with particular appreciation for the level of action, racing battles, and overtakes. In Miami, we saw sell-out crowds along with exciting new activation with Apple, our new U.S. media right partner. Engagement remains robust this season. We welcome 1.3 million attendees to date, with all four races selling out and the Australian Grand Prix setting a new attendance record.

The Paddock Club is already sold out for nearly all of our remaining races this season, with over 65,000 tickets sold to date. This figure is already in line with our 2025 total Paddock Club attendance. To accommodate demand, we are increasing Paddock Club capacity this season at Silverstone, Austin, and Monza, and our promoters are working to increase capacity at the other circuits. Our successful collaboration with Soho House and Lewis Hamilton, House 44, is also expanding and will feature at 9 races location this year, up from 5 after it launched last year. House 44 is already sold out at 8 races so far.

In addition, our collaboration with Gordon Ramsay continues to grow with a new Paddock-based premium offering operating in Shanghai, and we are looking into opportunities to roll out the experience at other locations, potentially starting with the United States Grand Prix in Austin. Live audiences across our top 14 markets are up year-over-year relative to 2025 across the first three races, driven by strength in key markets, including Brazil, Italy, and China. This season, we return to Globo TV free-to-air in Brazil. In China, we kicked off our new media rights deal with the CCTV and are seeing more extensive coverage. The live broadcast of Chinese Grand Prix attracted 1.9 million viewers in China, a +60% increase year-over-year in one of our key growth markets.

Our YouTube content generated almost 600 million views through the Japanese Grand Prix, up 46% relative to last year. We grew our following nearly 20% year-over-year with over 120 million social media followers as of the end of April. We continue our momentum across renewal and new partnership. We are delighted to welcome Apple TV as our new U.S. media rights partner this season. Through its extensive ecosystem, Apple TV has allowed Formula One to reach a large U.S. audience. The first three races delivered higher average viewership across track session relative to the last season. We are pleased with that strong momentum carried into Miami. Our fans are collectively also tuning in for longer, with total viewing hours increasing relative to the linear last year.

The average viewer of F1 content on Apple is both younger and more female. The sport is featured extensively within the Apple ecosystem and externally through innovative partnership with Netflix and Tubi, just to name a couple. Our broadcast of the Miami Grand Prix at the IMAX theater was extremely well-received and continues to highlight the new ways we and Apple are bringing the sport to fans. We continue to see major brand alignment between our two iconic global brands as we set out to take a more forward-looking approach to how fans discover and consume Formula One. Globally, our F1 TV product continues to perform well, with F1 TV revenue increasing 28% year-over-year. We were delighted to announce yesterday our 5-years renewal with Sky in the U.K. through 2034 and Italy through 2032 inclusive.

That will take us into the next decade with our incredible and long-term partner. The depth and quality of the programming and content Sky delivers has been impressive and helped to engage and grow our fan base in both the U.K. and Italy. In the U.K., total viewing on the Sky has increased by 90%, with female viewership more than doubling, and under 35's viewership growing 120% since becoming the exclusive home of F1 in 2019. In Italy, we have seen a 25% increase in viewership this season, in part driven by the strong performance of Ferrari and Kimi Antonelli. Sky has been a trusted partner of F1 with world-class coverage, we are delighted to extend our partnership into the future.

Internally, we remain active in our negotiation and renewals, recently renewing with beIN in Pan Asia and with Foxtel in Australia. We're also thrilled to announce we will be returning to race at Turkey Istanbul Park next year for the first time since 2021 under a new 5-year agreement. The return to the Turkish Grand Prix will be exciting for the F1 fan, drivers and teams. Formula 1 continues to grow strongly in Turkey, where the sport now reaches more than 19 million fans, and almost half of the fan base is under 35. We are also seeing strong momentum on digital and social platform, with the Instagram followers growing by 30% year-on-year. We also officially began the 2026 public sales cycle for our fourth edition of the Las Vegas Grand Prix today.

Following last year's sellout and ahead of our public on sale, demand indicators were very strong with deposits for this year's race at record levels. We have maintained our sponsorship momentum with an active quarter of renewal and new partnership. We entered into new multi-year agreement with FanDuel, a Betway to reinforce our desire to enter the betting space regionally. We have also signed Marsh as our official race partner and official insurance brokering partner. We have also extended our Salesforce and Allwyn partnership, all effective this season. Our momentum continued to accelerate across our other revenue streams, including licensing and hospitality. We have announced our multi-year extension with Fanatec, our sim racing hardware company, and relaunched our esports championship, hosted 2 live events to date and 1 in our new on-site facility, Biggin Hill.

We are fully leaning into our first full year of partnership with Disney, including the successful launch of Disney and F1 Fuel the Magic campaign in the Asia-Pacific region. At the Chinese and Japanese Grand Prix, we launched specialty F1 Disney stores in the fan zone, driving overall retail sales during the quarter up 125%, with China retail sales growing nearly 80% year-over-year. We reopened our Grand Prix Plaza site in Las Vegas at the end of January, and early performance has been encouraging. Average weekly attendance this year is nearly peak levels of from 2025, with private events occurring weekly. Demands for F1 Drive has also been particularly strong, with the multiple sold-out weekends.

We remain focused this season on cultivating and fueling the fandom with our always-on strategy through beginning the creativity, thrill, and excellence of our ever-evolving sport and entertainment platform to the fans. While we have grown so much in such a short amount of time, we believe we are just at the beginning of what is possible for Formula One. The momentum we see across all our business continues. At a remarkable pace and the foundation we are building today, we create enduring value for our partners, shareholders, and our fans for the years to come. [Foreign language] Avanti tutta, full speed ahead as always. Now, I will throw the call to Carmelo to discuss MotoGP.

Good morning, thank you, Stefano. We had a strong start to the beginning of our season, with compelling storylines on track and continued momentum across the business. With Liberty Media's continued support, we are confident in achieving the long-term strategic vision of our sport and are encouraged by the early progress we have seen today. As you have seen, we have made a decision to postpone our Qatar Grand Prix to November, given to the ongoing situation in the Middle East. We look forward to returning to the region soon. On track, the racing remains as competitive as ever. While Marco Bezzecchi continued to lead the Riders' Championship, we have already seen seven riders across five different teams on the podium this season, highlighting the unpredictable and excitement that define our sport.

We welcome more than 720,000 fans across our first 4 races, including a record of 228,000 fans in Buriram. We also returned to Brazil this season after 20 years hiatus in the country with that city-to-circuit integration and delivered an exciting race weekend. Brazil is one of our most engaged markets, with over 80% of fans consuming MotoGP content weekly. Across the Sprint and Grand Prix in Brazil, our broadcast audience surpasses over 1.6 million viewers on Band. We look forward to returning next year alongside of our returns to Buenos Aires and Australia, both at the new circuits in or near city centers, bringing the thrill of MotoGP racing closer to our fans.

We continue to track brand awareness and engagement through our fan insights platform, which will support our commercial evolution and localized content initiative in growth markets, including the U.K. and U.S.A. We ended the quarter with nearly 62 million social media followers across our own platform. Video views across our digital platforms, excluding video pass, increased almost 40% on the same periods on 2025. We also continue to make progress with our commercial partners. We have extended our partnership with ServusTV in Austria to broadcast our rides through 2030. Starting with the United States Grand Prix this season, we are expanding our partnership with Quint through an exclusive multi-years agreement. With Quint's invaluable experience, we are focused on scaling our hospitality offering, enhancing the premium hospitality experience with the VIP village and driving further significant improvements towards high-end customers and partners.

We are encouraged by the strong start to the year and the quality of demand we are seeing across our portfolio. With double-digit growth in ticketing volume and sustaining momentum across all regions as we roll our new innovation across our hospitality product suite. We look forward to continue to update the investor community on our progress. I will turn the call back over to Derek.

Thank you, everyone. We appreciate your continued interest in Liberty Media. With that, we'll open the call up for Q&A. Operator?

Thank you. We'll now be conducting a question-and-answer session. Our first questions come from the line of Sean Diffley with Morgan Stanley. Please proceed with your questions.

Great. Thanks very much, team. Two, if I may. First on sponsorships and second on capital allocation. Congrats on the success that you've seen on the sponsorship side. I think over the last few years, it's been adding new sponsors really driving a lot of this, and you continue to do that with Standard Chartered and Marsh. It also seems like you're gaining traction on the renewal side with upgrades like Salesforce and Allwyn. I was hoping you could talk about the balance of kind of new and existing partners going bigger and any categories or verticals that you think you're still under-penetrated in. Second question, Derek, you had mentioned evaluating avenues for capital deployment to deliver long-term value to shareholders. I was hoping you could elaborate a bit on that.

What's your framework for determining what those could be and how we should think about your approach to investing in the core businesses you have, potential M&A or capital return? Thanks.

Sure. Thanks, Sean. Let me take the second one first, and I'll hand it over to Stefano for a bit on the sponsorship. I think on that capital allocation, you know, we've been pretty clear in recent history here that, you know, primary focus has been to delever, which we clearly are in the process of doing, as well as looking at, you know, strategic investments and, you know, ultimately also the thought of capital return to shareholders. I don't think we're in a position right now to say, "Hey, we're pursuing one over the other." All options are on the table, and it's something that we are, you know, looking at on a regular and, frankly, a daily basis. That's the job of the folks here.

You know, we are very focused on the performance of our operating companies and leaning into those and continuing the strong performance that we've seen there, which frankly, puts us in this position to be able to have the question that you asked. Finally, I think just in the very near term, we clearly are very bullish on our businesses and where we see them going. We can't control every macro factor out there. We don't have a crystal ball. You know, to some extent, we're being a little bit conservative right now as we make sure that we understand the implications of some of the other events that are happening out there.

On the sponsorship side, I will let Stefano talk a bit about sort of his mix of the renewals and new sponsors and where he sees some back on.

Thanks, Derek, and thanks, Sean, for the question. If I go back a couple of years ago, we always said that our duty is to make sure that what we are offering is solid and genuine. Only solidity and ingenuity has allow us to be stronger in this momentum. If I just think back, no one would have thought that, for example, in the category of brokering, there would be someone who really wanted to invest in our platform to develop their business. It is true that now, as we said last time, we see potential to keep growing because we have done a lot of new step in term of creativity activation that has allow us to offer something new in the market to different partners.

It is true that on the other side, what we have done is basically moved also from normally what has been considered a B2B partner also to B2C. We have seen that in the last couple of extension renewal or a new entry. It is clear that the category of high tech is the category where we can find some other opportunity in the future, even if the big partner we have now are basically are very, very interested to lock down in the future in order to prevent the others to come in. It's a great situation we have. I go back to the fact that for us now, it's really a matter of keep growing, keeping offering something new to the partners, keeping giving the momentum of what we can offer in a very genuine way.

That is really, it has been so far a successful strategy that we continue in the future because as you said, Sean, now we are also in the process of having active renewal much more in advance before the expiry date. That means that everyone believe in us, and this is something that we feel we take back home as a great responsibility.

Thanks very much.

Thank you. Our next questions come from the line of David Karnovsky with JPMorgan. Please proceed with your questions.

Hi. Thank you. Maybe just starting on the Sky agreement announced yesterday. You did have some time on this one in both the Italy and the U.K. Interested in why now is a good moment to execute on a deal with what I think is your largest media partner rather than the alternative, which would be waiting and kind of testing the open market in a few years. Does this agreement have any current economic impact, or is this just about locking up future terms?

Sure. Hey, David, thank you for the question. I think I'll start and then let Stefano take it, but there are no current implications as a result of the deal. I think one of the things to think about is whether it's sponsors, media partners, you know, local promoters. What we're really asking a lot of these guys to do as they partner with us is to invest in the product. In order to do that, you know, you want them sort of confident with the relationship and where things are gonna be on a longer term basis. Sometimes we are entering into these discussions early to facilitate that, exactly that.

You see that at a lot of the, you know, local promoter deals that Stefano has done in recent history, which are really to then facilitate increased investment and sort of the infrastructure, hospitality, things like that. It's a similar sort of concept here as these guys continue to work with us to build sort of the next gen of what the viewing experience is like, it suits both of us to sort of lock up in a manner like this. I'll let Stefano elaborate on that.

Thanks, Derek. I would add on top of what you said that answered the question of David is, first of all, let me thank Dana Strong and all the team at Sky for the tremendous job they've done since the first day that they are with us. Now this is an extension of an incredible deal that will cover a very important area where our fans are very solid. That is U.K., Ireland and Italy. It of course, will have an impact that will be on long term because as Derek was saying, you know, the financial implication up to the end of the 2008 expiry has not been touched. We're just looking ahead with a more and stronger financial and technical contribution.

It is true on the other side, they are very, very, very focused on delivered, you know, new extra content, not only using the so-called broadcasting operation. They have a big voice in influencing a great demand that is growing in these markets, and that's something that we want to recognize to them. On the other hand, we do believe that the privilege of being a worldwide sport, we can really understand where we do believe that the shifting between traditional broadcasting versus streaming is moving. We do believe that in the market that we have signed the deal as an extended agreement with Sky, the situation we're having will be the best, even medium long term.

That's why we are very, very convinced that this re-relationship will continue to create an incredible demand of interest and the right product that will serve in this market to grow. Of course, in other markets, the situation could be seen different because that's really where we are. Understanding what could be eventually other opportunity that we can take, for example, in new market that could be potentially very interesting in the future to bundle with other sport. Why not? We need to be creative. That's what has been always our approach to try to find the best solution with our partners that has contributed so much for the growth of our sport.

Okay. I have one for Brian. Brian, your team payments figure this year always gets a lot of scrutiny. I want to see if you could maybe shed any light on your budgeting approach, how you approach variable items like Vegas or potential sponsor deals. Would there be any contingencies in that number for the Middle East races you have on the calendar later this year, just given the ongoing conflict there?

Thanks for the question, David. The budgeting approach is similar to past years, and the biggest variable that we've had over the last few years since we've launched the Vegas race is the Vegas race. There is certainly some conservatism in there around Vegas just to give ourselves room as it relates to the team payments. The 200 basis point decrease that we kinda gave you guys at the end of the year, that still holds true. Right now we're focused on a 22 race calendar, and as Derek said, we're still hopeful that we can move one of those races to the back part of the year. If so, that would be upside. That's what's in the forecast at this point is the 22 races.

Thanks.

Thank you. Our next question has come from the line of Stephen Laszczyk with Goldman Sachs. Please proceed with your questions.

Hey, great. Thanks for taking the questions. Derek, there's been some discussion in the press around Miami potentially adding some more Paddock Club capacity, as well as maybe a MotoGP race at some point in the future. I was hoping you could maybe talk a little bit more about the opportunity in Miami to expand and as well, maybe more broadly about how you're thinking about the opportunity to expand Paddock Club capacity across the calendar, as well as how many opportunities you think might be out there to add a MotoGP race alongside Formula One at some of these tracks?

Let me take the second part of that first, and then I'll go back to the Paddock Club and then turn it over to Stefano so he can talk about that. On, you know, MotoGP, I think the context for MotoGP really is we've said it, we're gonna continue to say it, the U.S. is an important market for MotoGP, we are looking at all avenues to grow our business here. It's gonna take time, just like it did with Formula One, we do see that there's an appetite and that there's gonna be a market here. How we go about that clearly will be, we do have interest in adding races in the U.S. Miami would seem to be a logical spot because there's already a track there.

There's a lot of things that have to get worked out, whether it's Miami or any other track in terms of, you know, whether or not it works for MotoGP and sort of the safety concerns and.

Stuff like that, where you've got different requirements than Formula One, as well as what markets frankly make sense from a commercial standpoint. Those are conversations that we will have with Miami, with other folks also trying to scope out what the right locations would be for U.S. expansion. As it relates to Miami itself, they did announce over the weekend that they are expanding paddock capacity. I think that Stefano has spoken about this on many occasions in terms of the way we're structuring a lot of our promoter deals going forward is really a lot of it's the expansion of high-end hospitality. We saw that in Budapest. I think we announced Austin recently. They've got a whole new building going up down there around the first turn.

I'll turn it to Stefano for a little bit more detail on his thoughts.

Thanks, Derek. Let me take the opportunity to after the end of that incredible Grand Prix in Miami, to thank, you know, John Galtica and Katie, for that incredible organization. It's been really a phenomenal event with a lot of people, a lot of action on the track. It's true as we just mentioned that they're gonna invest even more to make sure that the quality and the capacity of that event will be even bigger in the future. That goes back to what we said, I think the other time, there are certain places or certain events that we believe are fundamental for the growth of our sport.

Given the possibility for them to have long-term deal, we'll push them also to invest in the right way. On top what Derek has just mentioned, we want to remember that also Monza will do that or Hungary will do that. Almost everyone will have a plans to increase capacity with the right quality of the offer. That is something related to the request. The demand is very, very high. The profile of the customers that are coming now also with the new partners require a different possibility of expanding that. In Monte Carlo, in Monaco, for example, you know, we have extra capacity. We have also with the partner of MSC and Abolt, where our guests can exploit a different kind of experience.

All is connected to the fact that the ecosystem is solid, strength together, working with the vision to keep growing the business. Otherwise, no businessman will invest in something they don't believe will be beneficial also for their interest, which is normal. Therefore, as I said, this is another signal I do believe, Steven Cahal, of the quality and the performance of our sporting platform today.

Great. Maybe just one for Brian. On SG&A continues to trend higher on the F one side. I was just curious if you'd help unpack what we're seeing there in the first quarter, and then maybe help us think about how that line should trend as we think out here over the balance of the year. Thank you.

This quarter, the three biggest drivers are, you do have an FX impact in the SG&A number that's negatively impacting the growth. We'll see how that fluctuates as the year goes along. There are also some higher personnel costs and some SG&A costs around LVGP, which are also kind of more personnel related, and I think those are a bit more front-end loaded. That's offset by reduced marketing costs because remember last year we had the 75th anniversary event. Those are really the big drivers. There are some increased IT spend in there as the company's working on, you know, different types of projects.

Thank you.

Thank you. Our next question has come from the line of David Joyce with Seaport Research Partners. Please proceed with your questions.

Thank you. In thinking about the Formula One calendar this year, if there is the possibility of adding Saudi Arabia back into December and shifting Abu Dhabi out a week, how does that reallocation based accounting work for the various revenue lines? Would you restate the first quarter, or would you reallocate going forward with a true up? You know, how should we think about that? Secondly, kind of housekeeping, why was D&A up a lot sequentially? Thanks.

Yeah, on the first part of the question, any impact from adding an additional race would come through in that quarter in which you make that change in the calendar. On the second part of your question, David, D&A, it's up $1 million. You know, the company's been investing in their operations facility out in Biggin Hill, so, you know, you see increased depreciation associated with that building, that project was largely completed early last year. That's probably what's driving the bulk of that difference. You also have GPP CapEx that was in our results early in 2025, so you'd see increased depreciation associated with that.

All right. Thank you.

Yep.

Thank you. Our next question has come from the line of Matthew Condon with Citizens Bank. Please proceed with your questions.

Thank you so much for taking my questions. My first one is after the first couple of races with Apple in the U.S., any key learnings coming off of that, whether it be from the broadcast itself, but also the distribution to the broader Apple ecosystem. My second question is on the calendar opportunity in MotoGP and I know you've talked previously about optimizing race locations. How are those conversations coming as you try to move some of those into city centers and such? Thank you.

Sure. Thanks, Matt. On the Apple question, I will let Stefano take most of that. I think that what we've seen, though, is in, you know, the viewing across all segments of sort of the race weekend, has been very strong. I think that Apple has done a great job of bringing people to the ecosystem. I think that, you know, on the risk mitigation side, I think people probably anytime you change broadcast partners, you always run the risk of having a lot of fan outlash that they can't find it or things like that, or it's not as good. You know, we haven't had any of that.

In fact, it's been to the positive in terms of how consumers have been interacting with product, with the viewing, and sort of the commentary out there has been it's been a, you know, it's been a good experience for them. I'll let Stefano continue on that, and then we'll come back to the calendar question on MotoGP.

Thanks. Thanks, Derek. Matt, I would say, to add on what Derek has just said, we do not have to forget two things. Our fan base is younger and there are a lot of females, around 40% in U.S., and that's why we do believe that, you know, Apple will guarantee to them a much more fruitful way to live that experience. We don't have to forget that the other positive effect of what is a journey that has just happened, because we just did only four races and of course, you know, it will be a long deal. Every weekend, there is something that we learn and we'll improve. There is the possibility, as it has happened, for Apple to use different platform.

You know, IMAX to be, you know, stores and other activation that's being done will generate more interest and more following. I would say, it's a more dynamic way to lead that sport, and that is in line on what we're going to see. I mean, there is a tremendous effort on Apple also to deliver some new technical content. These are, as I said, long-term journey that so far has been very, very successful because we're just at the beginning of a new journey where I would say, on top of the four races, the first three were not really, let's say, time friendly for the U.S. market. As a global audience, for what we can see, it has been a very, very positive start of the season.

That's why we do believe that this is just the beginning of something that will create even more attention for the future, and on which I can confirm, because Eddy Cue was present in Miami, Apple is full on board. Full on board, confirmed by Eddy Cue, but also the future CEO of Apple, that he's a racing fan. That is not bad. For the second question, I would say go back to Derek Chang, if it's okay.

No, thank you. Thank you, Stefano. On the MotoGP calendar, I'll start and I'll turn it over to Carlos for some additional commentary. I do think that our stated objective is to get some of these races closer to, you know, cities where we can leverage off of the infrastructure, whether it's the airport and long distance travel or for both ourselves as well as for the fans who are coming in internationally and the hotels and the restaurants and sort of ease of access, I think is important. You're seeing this with sort of the races we announced for next year, both in Buenos Aires and Adelaide. We're already starting to make progress on that. That being said, you also don't want to just wholesale change out all the races.

We have a long heritage here of races and many, many, you know, compelling locations, where, you know, it makes a lot of sense to keep them there. They've been fixtures on the race calendar, and they bring a lot to the sport and a lot to the identity of the sport. I have been, you know, this year already to Austin, I've been to Jerez, headed to Mugello and Assen later this year. We really wanna get a good sense of what it feels like in the different locations, because what we wanna do is create a fan experience that is engaging, exciting, entertaining, accessible, wherever we do it. There's a lot to be learned on even on locations where we may not move, but how to improve those.

It's a mix of all of that as we think about our calendar moving forward. Carmelo Ezpeleta, you may have some couple words to add to that.

I think Carlos might be switched off, so we can.

Okay.

Come back to that later. Operator, we'll take the next question.

Thank you. Our next question comes from the line of Steven Cahall with Wells Fargo. Please proceed with your questions.

Thank you. First, I just wanted to ask about fuel prices. I think the structure, you know, allows for a pass-through from F1 to the teams on fuel prices. You know, I imagine in motorsport, when fuel prices go up, that cost flows through somewhere to someone. Can you just help us understand how rising prices for gasoline will affect both F1 and MotoGP, kinda short, medium term, and where we might see some of that reflected longer term in the P&L? Then, Stefano, I just wanted to ask you about competition. You know, we've seen Cadillac and Audi come in this year. Ford is making a big push with Red Bull. The racing has definitely improved with the new technical changes.

We haven't, though, yet seen kinda any new teams get from the midfield to the top tier. What do you think needs to happen, for that to change? Is it a technical issue? Is it a financial issue? Since I think competition is always good for the value of the sport. Thank you.

I'll let Brian start with the fuel question, then he'll turn it over to Stefano for the racing question.

Steven, thanks for the question. On fuel, it's a little bit different for the two businesses. As you rightly point out, at F1, if we have increasing fuel costs and freight costs, those are generally passed through to the teams. You'll see a bit of a gross up on the income statement throughout the year, but pretty minimal impact to net margins. On MotoGP, it's a little bit different. There's more of a kind of a fixed structure there. To the extent we experience rising fuel costs, you might see some pressure to our overall cost of revenue without that offset on the top line.

Stefano, you wanna take the racing question?

Thanks, Derek. Steven, I mean, I think that what we see is definitely from an experience point of view, something that you were expecting. You know, F1 is a big beast. When you come in, we are of course, very pleased what has been the new entry. The process is not related to money, is related to experience and time. This is something that has been always, you know, elements that happened since the beginning of this sport. Is a big technological challenge. Is a work of team players that need to understand what is, you know, the dimension of the challenge.

It's something that, of course, is related to the fact they are new, and they will have the chance with the budget cap to have less burden in respect of the past. It's just a method of being a little bit patient, even if, you know, when in a racing world, after only four races, you believe that it's 400 races because every day, every minute, you know, the pressure is getting higher. The advice that I would say they know very well is not to fall in that kind of anxiety, because the anxiety will not help to be even more performant. The beauty of what we have seen in a totally different scenario of a totally new regulation is something related to the fact that there is a lot of margin for the improvement.

That of course, the more you are behind, the more could be bigger if you are able to take the right stream of development and if you're working hard with your drivers and teams to improve the performance. In this specific year, there are so many new elements that could allow them to be even faster if they understand where to focus the need for them to recover the gap they have now.

Thanks.

Thank you. Our next question has come from the line of Joseph Stauff with Susquehanna. Please proceed with your questions.

Thank you. Good morning, everyone. Just trying to maybe better understand the rescheduling scenarios. I know it's complicated, but seems to me a second race in Las Vegas might be, of all your scenarios, a relatively easier one, given the city's flexibility and your vertical ownership of the Las Vegas Grand Prix. Is that a fair assumption? Then two, with respect to whether or not you reschedule or not reschedule, how much, say, pre-marketing, how much of a lead time do you need in terms of being able to properly market that and so forth? Is it two, three months? Just wondering.

Sure. Look, I think we are evaluating all the various alternatives and, you know, trying to make decisions in a timely fashion that will give us as much lead time to the extent we make changes and make adjustments. I'll let Stefano talk through some of those specifics as he and his team are working overtime trying to keep up.

Yeah. Thanks, Derek. Thanks, Joe. I mean, to be very direct, I mean, to avoid any speculation, you know, the only thing I can say that we have plans, hopefully not to be applied because we really hope that the situation for the world, not only for the racing, will go back to normal situation. We have plans, of course. The lead time or the cutoff really is different between the fact that we can eventually recover what has been not run in April versus what could eventually happen or not happen in end of November, beginning of December. We are of course aligning with the teams, with the promoters, because that's something that has a big chain of reaction. We are in the due time, we will keep everyone informed.

I hope you understand, Joseph, if we just say something that will be a speculation that we want to avoid, because as I said, the first hope is to make sure that we go back in the place that we should be.

Understood. Thank you.

Thank you. Our final questions will come from the line of Ian Moore with Bernstein. Please proceed with your questions.

Hi. Thanks. I know the announcements are all relatively new and fresh, but given the broadcast agreement extensions, like with Sky, the return of the Turkish Grand Prix next year and the updates to the Miami Grand Prix, are you noticing any, I guess, positive halo effects or incremental opportunities with respect to F1 sponsorship interests or just broader demand that might have implications for the rest of the year and beyond that? Thanks.

I'll let Stefano take that. My guess, though, is that from a just purely what lands in this year is probably limited at this point, just given the given how these deals are done. Stefano will probably give you more color on the broader halo effects.

I mean, the halo effect, thanks, Ian, is what we said at the beginning, the fact that the activation is getting bigger, better in terms of quality. Of course, we want to be as creative as possible without taking away the quality of what we are offering to our customer and guests. Of course, you know, the fact that we have bigger audiences is pushing the ecosystem to try to find solutions. This is good because everyone is on the same page and the F1, let's say, sponsorship package is really very solid.

If the question is related to what will be the effect on this year, the definitely the effect on this year is not related to have more numbers because it's already almost sold out everywhere. This is also even better because will allow us to grow in the future on numbers that are not yet indicated in the accounts that we have today. It's just something that goes back to the long-term strategy and all the partners and sponsors that will be part of this incredible growth that we really do believe will happen even in the next couple of years in front of us.

Great. Thanks, Stefano. I think with that, we will conclude the call. Before we end, though, I did wanna say a special thank you to Carmelo and Stefano and their teams, just because managing through sort of some of the disruptions that we've had, I realize the events in the Middle East have hit most companies, but obviously very directly to ours in terms of a lot of the rescheduling and logistics and thinking through contingencies and all that. We're on it. I wanted to thank those guys and their teams because they've been working overtime. I wanna thank everyone on the call for taking the time. We always appreciate your interest in Liberty Media, and look forward to speaking with you guys again soon.

Ladies and gentlemen, thank you so much. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Hello, and welcome to Liberty Media Corporation's 2025 Year-end Earnings Call. [Operator Instructions] As a reminder, this conference will be recorded February 26. I would now like to turn the call over to Hooper Stevens, Senior Vice President, Investor Relations. Please go ahead.

Thank you, Kevin. Thanks, everyone, for joining us today on Liberty Media's Fourth Quarter and Year-end 2025 Earnings Call. This call today 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 followed by Liberty Media with the SEC. These forward-looking statements speak only as of the date of this call and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including adjusted OIBDA, constant currency for MotoGP, the required definitions and reconciliations for Liberty Media can be found on Schedule 1 and MotoGP or Schedule 2 at the end of the earnings press release issued today, which is available on Liberty Media's IR website. Speaking on today's call, we have Liberty Media's President and CEO, Derek Chang; Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling; Formula One's President and CEO, Stefano Domenicali; MotoGP CEO, Carmelo Ezpeleta and other members of management will be available for Q&A. With that, I'll hand the call over to Derek.

Morning. Thank you, Hooper. And before I start, I just want to welcome Hooper to our team. This is his first earnings call for Liberty. Many of you know, Hooper already, he has obviously been part in and around the Liberty Complex, but we are very, very happy to have him with us here. It has been an exceptionally productive and successful year for Liberty. We are energized by the slower progress we've built across our businesses and are focused on accelerating our momentum this year. We have delivered against each of the priorities we articulated last year, namely one to continue F1's growth trajectory; two, to augment our portfolio with the acquisition of MotoGP; and three, to execute the Liberty Live split-off. Following the split-off last December, we are now a premier global sports investment vehicle anchored by 2 world-class motor sport leagues and operating in an industry supported by strong secular growth tailwinds. Looking ahead to this year, operational excellence at MotoGP and F1, while remaining disciplined and opportunistic with our capital to drive value for our shareholders and across our portfolio. Turning now to our operating businesses. At MotoGP, we see tremendous upside over time and are in the early stages of unlocking that potential. We don't expect to see these investments bear fruit immediately, but are laying the necessary groundwork to drive this sport forward. Since closing the acquisition last July, we've continued building on our commercial functions. We hired key personnel across sales, public relations, social media strategy with more additions to come. We're focused on driving knowledge sharing between MotoGP and F1 and believe this can support long-term value over time. I just recently returned from our Partner Summit in Barcelona, where we clearly articulated our strategy to teams, promoters and partners across the ecosystem. The enthusiastic response was a very positive sign as we build share momentum with a strong collective commitment to the future of our sport. For Moto, our 3 key priorities are: first, we remain focused on strengthening MotoGP's foundation and expanding its global footprint. We recently announced we are moving our Australia race to Adelaide, marking our first modern era circuit in a city center and we are excited to return to Brazil this year after a 20-year hiatus and look forward to adding Buenos Aires to the calendar next year, strengthening our presence in major international cities. Second, we remain focused on elevating the Grand Prix experience into a must intend event at every circuit. We continue to further enhance our hospitality offerings and improve the on-site fan experience. Finally, this work underpins our efforts to unlock our brand value to scale the sponsorship roster. We remain disciplined in our approach to sponsorship and are prioritizing brand alignment with high-quality partners over near-term wins. Now turning to F1. F1 once again delivered an exceptional year with the sport firing on all cylinders across growth, engagement and commercial momentum. We renewed with multiple long-term existing partners, we signed several new marketing partners, including Standard Chartered, our official wealth management and banking sponsor. As you saw earlier this morning, we just announced our broadcast extension with beIN in the Pan Asia region. And earlier this week, we announced the extension of our ESPN partnership in Latin America. Our third year of the Las Vegas Grand Prix was a resounding success and our relationship with the Las Vegas community has never been stronger. Importantly, we finalized the new Concorde Agreement to cover the 5 years from 2026 which provides us with durable financial economics in all F1 constituencies and constituents a stable base to invest into the sport and drive long-term value creation and an even healthier ecosystem. And 2026 should be an exciting season on track with Cadillac and Audi joining the grid. The new brands, cars and engines should lead to an incredibly competitive racing season ahead. Stefano and Carmelo will both provide more updates on their businesses later in the call. We look forward to continuing to support their strategic vision. Now I'll turn it over to Brian for more on Liberty's financial results.

Thank you, Derek, and good morning, everyone. At year-end, Liberty Media had cash and liquid investments of $1.1 billion, which includes $539 million of cash at F1 and $197 million of cash at MotoGP. Total Liberty Media principal amount of debt was $5 billion at year-end, which includes $3.4 billion of debt at F1, and $1.2 billion of debt at MotoGP, leaving $499 million at the corporate level. F1's $500 million revolver in MotoGP's EUR 100 million revolver are both undrawn. At year-end, F1 OpCo net leverage was 2.8x. This is down from 3.3 that we gave at 6/30 pro forma for the MotoGP acquisition. And MotoGP's net leverage was 4.7x at year-end, down from 5.6x at 9/30. We expect to continue delevering at MotoGP this year. Liberty Media's overall net leverage was 3.6x. Turning to the F1 business. I'll make some brief comments about the fourth quarter but focus on full year comparisons primarily. A reminder that every quarter in 2025 had incomparable race count and mix. 2026 will also have incomparable race count and mix except for the fourth quarter. Majority of the variability in Q4 year-over-year results is due to one more race being held in fourth quarter compared to the prior year period. Q4 '25 had 7 races compared to 6 races in Q4 '24, with Singapore being included in the current year period but not the prior year period. Note that we operated the same number of Paddock Clubs during the fourth quarter, given that the Singapore Paddock Club is operated by the local promoter. For the full year, the business performed exceptionally well. Revenue grew 14% and adjusted OIBDA grew 20%, driven by growth across all revenue streams. Sponsorship revenue continues to increase from new partners and underlying growth and contractual increases. Media Rights revenue grew due to underlying growth in contracts, continued growth in F1 TV and the onetime benefit of the F1 movie revenue that was recognized in the second quarter. Race promotion revenue increased due to underlying growth in contracts. Other revenue grew primarily driven by higher hospitality and growth in licensing and freight income. Higher hospitality revenue includes revenue from the Las Vegas Grand Prix, and also revenue generated at Grand Prix Plaza from its growing private events business and the various new activations we opened in May of last year. Touching briefly on the Las Vegas Grand Prix. As Derek mentioned, our third year operating the race was a success, and we saw improved financial performance year-over-year. We continue to see a material benefit accruing from LVGP to the broader F1 ecosystem across various revenue streams, especially sponsorship, hospitality and licensing. Vegas continues to serve as a very successful test bed for product expansion and is integral to the continued growth of our sport in the U.S. Adjusted OIBDA increased during the year, driven by the strong revenue growth discussed above, outpacing increased operating and SG&A expenses. Higher operating expenses included higher team payments, and increased expenses associated with servicing our revenue streams. The increase in SG&A and -- the SG&A expenses was due to higher personnel and marketing costs. Team payments as a percent of pre-team share adjusted OIBDA were 59.7% for the full year 2025, representing 185 basis points of leverage against 2024. Over the past 4 years, we've seen an average of roughly 200 basis points improvement in leverage each year, and we expect 2026 to be approximately in line with this average. After 2026, for the remainder of the term of the new Concorde Agreement out to 2030, we expect the payout percentage to remain relatively stable. A reminder that team payments are best analyzed on a full year basis due to quarterly fluctuations in team payments as a percent of adjusted OIBDA. Looking quickly at MotoGP's results. As a reminder here, we closed the MotoGP acquisition on July 3. Our financial results are presented on a pro forma basis as though the transaction occurred on January 1, 2024, and the trending schedule will be posted to our website after the 10-K is filed including results in U.S. GAAP for the full year '24 on a pro forma basis. The majority of MotoGP's revenue costs are euro denominated and as such, are subject to translational impacts from foreign exchange fluctuations. In the following discussion, I'll focus primarily on constant currency results. Similar to F1, I'll make a few comments about the fourth quarter, but we'll primarily focus on the full year. Year-over-year comparisons are impacted by the mix of races, and generally, MotoGP flyaway races carry higher costs, which includes freight, travel and higher earth fees. MotoGP held 5 races in the fourth quarter of both this year and the prior year. Revenue increased at MotoGP during the fourth quarter as increased race promotion fees due to the race mix and contractual uplifts were offset primarily by lower proportionate recognition of season-based income with revenue from 5 out of 22 races being recognized this year versus by about 20 races recognized last year. For the full year, MotoGP had 22 races compared to 20 and 2024. Revenue grew across all primary revenue streams, primarily due to the 2 additional races held and contractual fee increases. Media Rights revenue also increased due to growth in VideoPass subscription revenue and other revenue benefited from increased hospitality revenue, which saw 2 additional races and increased attendance, partially offset by a decrease in fees related to MotoE. Adjusted OIBDA grew for the year driven by the higher revenue, offset by growth in operating expenses. SG&A expenses were lower, primarily driven by recognizing less bad debt expense in 2025 compared to the prior year. Note that bad debt expense in '24 was primarily related to race cancellations from years prior to 2024. Looking briefly at Corporate and Other results for the year, revenue was $414 million. This includes Quint results up until the split off on December 15 and approximately $33 million of rental income related to Grand Prix Plaza. Corporate and other adjusted OIBDA was $5 million and includes Quint results up until split off, Grand Prix Plaza rental income and corporate expenses. As a reminder, Quint business is seasonal with the largest and most profitable events taking place in Q2 and Q4. Note that Quint intergroup revenue from MotoGP is eliminated in our consolidated results through the spin date. Going forward, Quint will no longer be reported in our operating results. F1 and MotoGP are in compliance with their debt covenants at quarter end. And with that, I will turn the call over to Stefano to discuss Formula One.

Thanks, Brian. 2025 was a thrilling season as we celebrated the 75th anniversary of Formula One with standout performances across the grid. 9 drivers across 7 different teams reached the podium, including phenomenal performance from rookies like Isack Hadjar. Congratulations to Lando Norris for winning the Driver Championship and McLaren for winning the Constructors' Championship. 2026 is set up to be another captivating season as it represents the next generation in F1 incredible history with new cars, engine and regulations. All signs point to an exciting kickoff in Melbourne next week, which we know will sell after intensive precision testing in Spain and Bahrain. We look forward to welcoming Cadillac and Audi to the grid and for the return of Ford with Red Bull and Honda with Aston Martin. In December, we also successfully completed the signing of various elements of the new Concorde Agreement with all teams and the FIA. Engagement across our fan base continues to grow. We welcomed 6.75 million attendances last season, our largest combined attendance in history, up 4% relative to 2024. Australia, Silverstone, Mexico and Austin, each, respectively, welcome over 400,000 fans over races weekend, and we had 19 events sellout with 11 setting new attendances records. The Paddock Club serve 65,000 race day guests, up 10% on the prior year. Last season, many of our Paddock Clubs sold out, and we increased revenue 20% per race on average. Robust demand continues for 2026 with record preseason sales and in partnership with our promoters, we are increasing capacity at certain races while looking to keep enhancing our guest experience. For example, at our Austin Grand Prix, the promoter is currently constructing the new facility at Turn 1, which will host a new Paddock Club space to accommodate more guests. Our promoters also have plans to upgrade the Paddock Club space in Mexico and introduce a new Gordon Ramsay experience in the Paddock in Shanghai, just to name a few developments. We continue to see strong engagement and reach across viewership and our digital and social platforms. Cumulative viewership is up across our broadcast and digital platforms. Global Live TV viewership across all session was up plus 21% year-over-year, showing increased appeal for our core product. F1 race weekends continue to broaden, with practice sessions showing strong increases in viewership. Screen popularity continues to increase with Sprint session viewership up to 10% year-over-year, and qualifying delivered the largest growth across all sessions with audiences up 23% year-over-year. For the Sprint races, we are currently in active discussions to expand the Sprint format up to 12 races in 2027 due to the high demand for promoters and fans. The Sprint format has also demonstrated the impressive performance across fan engagement. Our YouTube content generated 1.65 billion views, up 48% relative to 2024 and with YouTube highlights view, increasing 21% year-over-year. Passenger Princess reached 7.6 million total views, including 1.5 million views within the first week of release, highlights from the first 3 days of the preseason test in Bahrain reached over 8 million views on YouTube, which represents an increase of plus 64% compared with the Bahrain preseason testing session in 2025. And highlights from our first ever Barcelona shakedown reached nearly 17 million views on YouTube. We hope you will be tuning in for season 8 of Drive to Survive. For the fifth consecutive years, F1 continues to be the fastest growing sport on social media. We ended the year with 150 million social media followers, up nearly 20% year-over-year. Commercially, we had another strong year of renewals and new partnership. We have an active year of media rights negotiations, signing or renewing with broadcast partners across multiple territories, including the United States, Pan-Asia, Canada, Brazil, Latin America, Mexico, New Zealand, Japan and India. Apple is now our U.S. Media right partner, and we are excited by their vision, innovation and unmatched ability to reach and engage wider audiences through their platform and marketing scale. This was clearly demonstrated by the success of the full-time Oscar-nominated F1 movie last summer. Apple will be a key driver of our U.S. growth strategy, and we are excited to work with them to drive our next phase of growth in the years ahead. We see major brand alignment between Apple and F1 as this partnership brings together 2 global brands with a shared passion for innovation, excellence and entertainment. We also renew our extended contracts with 9 of our race promoters, including most recently with our promoter in Barcelona. The race will now be officially called the F1 Barcelona-Catalunya Grand Prix, and we rotate with our Belgium race year-by-year throughout 2032. And we will host a Grand Prix in 2028, 2030 and 2032, in addition to the race scheduled for this year. We are also excited to welcome back Portugal to the calendar under a 2-year deals starting in 2027. The third year of the Las Vegas Grand Prix was an outstanding success. Congratulations to the Vegas leadership team for delivering an exceptional race weekend that showcase the very best of Formula One. We sold out the weekend and welcome over 300,000 fans to Las Vegas, while setting up a number of new event sponsors. Content related to our race generated 1.8 billion impression over the weekend, and we are gearing up for another phenomenal race this year. Picking up on sponsorship, we closed out another strong year of growth and continue rising the momentum into 2026, having built out a good pipeline of discussions. We recently signed Standard Chartered as our official banking and wealth management partner in a new multiyear deal. Equally impressive is growth across our other revenue streams, including licensing and hospitality. Our legal partnership delivered great results in its first full year, generating over 27.5 billion impression across marketing activation. Pottery Barn Kids and Pottery Barn Teen continued sales momentum following the launch late last year. Our collaboration with KitKat is also thriving with the new F1 KitKat bars available in stores, driving enhanced retail visibility, and we are excited to roll out a new dimension of our partnership with Disney later this year. Following the successful launch of House44, our premium Paddock Club hospitality partnership with Lewis Hamilton and Soho House, it will expand from 5 to 9 races this year. Visitors to Grand Prix Plaza enjoyed 90,000 track rides at F1 drive last year, and we are excited to reopen Grand Prix Plaza to the public at the end of the January. We are also encouraged by the growth of F1 exhibition, which has sold 1.3 million tickets across all its exhibition and F1 Arcade, which recently opened in Atlanta and has 3 more new locations planned to open later this year. Track side retail sales grew over 30% last year, and F1 hub pop-up merchandise experience operating in Austin, Miami and Las Vegas. This hub saw strong foot traffic and retail sales, and it is planned to open hubs in more locations this year, monetizing untapped merchandising opportunity in key locations. 2026 brings continued focus on inspiring the next generation of F1 fans through our creative activation, partnership and collection appealing to all audiences across our fan bases. We are seeing incredible momentum across all phases of our business. Our sport has delivered exceptional growth, and we see significant upside ahead. The strategy work we are doing now will deliver lasting benefit to our partners, shareholders and our fans. In only a few years, we have achieved so much as a sport and as a business. But we have only begun to scratch the surface of what is possible and the potential for F1 is not being underestimated as we enter another exciting new chapter in our history. Avanti tutta, full speed ahead. And now I will turn the call to Carmelo to discuss MotoGP. Thank you.

Good morning, and thank you, Stefano. Liberty Media commitment and support of our strategic vision has been a strong ride out of the gate. We are encouraged by the collaborative approach and early progress we are seeing and we are working together to build a strong foundation to drive our sport forward. The 2025 seasons delivered the very best of our sport, through racing and dramatic story lines. We saw a standout performance across the grid with 13 riders on the podium across 10 teams. Congratulations to Marc Marquez on extraordinary come back and winning his seventh MotoGP World Championship. We welcomed a record 3.6 million attendees last season up 21% year-over-year and set attendance record at 9 different circuits. First-time attendees, representing 27% of our total attendance for season, up from 18% in 2024. The 2026 season is gearing up to be another thrilling season. We held our second season launch event in Kuala Lumpur with global attendance and video viewership year-over-year. Fans enjoy musical acts by global artists, including The Script, DJ PAWSA and DOLLA. The 2-day event culminated in a live launch show featuring show runs from teams and riders. We look forward to kicking off the season in Thailand this weekend. Our global fan base now measures 632 million fans, up to 12% from last year, and we continue to strengthen our brand. We recently launched our first event season marketing campaign. Why that's different? Which bring our evolved brand positioning to life and create brand consistency and amplification across all fan channels and touch points. We continue to invest in our fan insight platform to track brand awareness and engagement. This will support the long-term scaling of our commercial functions and enable more targeted and localized content initiatives. We added over 3 million social media followers in 2025 and ended the year with nearly 61 million followers across our own platform, including 4.5 million followers on TikTok, social engagement increases plus 61% and video views across our digital platform, excluding VideoPass, increased 20%. Fans consuming 1 million minutes on our YouTube content last season. Average household tuning into our broadcast grew 9% year-over-year. Satellite sprint races ratios continued to close the gap to Sunday's race coverage with average audience viewerships growing over 26% year-over-year for the Sprint. Subscribers to VideoPass, our direct-to-consumer video service, grew 5% from 2024. We recently extended our Sky Italia broadcast rights deal, and we have also renewed our Moto partnership through 2030. We also had an active year promotor of renewals, including the recent renewal of the Thai Grand Prix through 2031. We are excited to return to Brazil this year after 20 years, and welcome to the grid Brazilian MotoGP rookie, Diogo Moreira. Initial capacity in Brazil has already sold out, underscoring strong demand, alongside coverage from ESPN 41 will be the free-to-air broadcaster of the Brazilian Grand Prix Estrella Galicia 0,0 as title sponsor. Finally, last week, we announced the move of the Australian Grand Prix into Adelaide beginning 2027 under a new 6-year agreement. The landmark race will be the first MotoGP race to be held in a city center, and we are able to do so without compromising our safety standards. Adelaide is an ideal location, bringing MotoGP closer to its fans, and we are excited to put on a fantastic 3-day fan experience. We look forward to continuing to update the investor community on our progress. Now I will turn the call back over to Derek.

Thank you, Brian, Stefano and Carmelo. We appreciate your continued interest in Liberty Media. And with that, we'll open the call up for Q&A. Operator?

[Operator Instructions] Our first question today is coming from Stephen Laszczyk from Goldman Sachs.

Maybe 2 on margin at F1, if I could. Brian, I appreciate the commentary on team payment in 2026. It sounds like the expectation for team payment operating leverage is for it to be in and around 200 basis points in 2026. So 59.7 going to 57.7 in 2026. Just wanted to confirm that thinking and then see if there were any upside or downside factors that you think investors should be mindful of as we track performance on that throughout the year?

Yes. I'd point you to, we said that we added the word generally or primarily or approximately around the 200 basis points. So I wouldn't lock it in stone. As you know, we talked about before, there are different things that can impact the team payment percentage depending on where the profitability is coming from. But generally speaking, we would expect to see about 200 basis points of leverage related to the team payment piece in 2026.

Great. And then maybe just beyond the team payment operating leverage point this year and thinking longer term opportunities to grow margins at F1 over the next 3 to 5 years. What factors are still available to you to grow margins maybe outside of the team payment line item that could expand margins for the foreseeable future?

Yes. Certainly, as we grow primary revenue streams, you would expect to see some leverage around those revenues. But we continue to invest in the business. And when you look at some of our other revenue streams, they certainly have costs associated with them. We've looked at growth in other costs of F1 revenue in the past. And you can certainly see partner servicing costs there as we grow our sponsorship revenue base, there's incremental Paddock Club obligations that are associated with that. So there is certainly costs associated with growing those revenues. But as we grow the primary revenue streams, we would hope to see some leverage there, but we're also going to balance that with continuing to invest in the business and try new things and try to grow the overall pie.

Yes. And Brian, if I may say -- add something on that to complete the answer that Brian said, is that all the costs related are connected to the growth of the marginality because, of course, the more we are getting stronger, the more we need to serve what is important to activate. Therefore, that's our philosophy. And in all the revenue stream that we are bringing home, that's the approach. And if I may, also when we are talking about a deal that we have with promoters in the long term, we have the leverage to increase the possibility of investing through them to acquire more possibility to invest with other experience with Paddock Club extensions. This is one example, for example. But that's the philosophy is cost. It's always associated to an increase of marginality related to increase of our revenues.

Our next question today is coming from Kutgun Maral from Evercore ISI.

Maybe following up and expanding on the margin discussion. I had a high-level question on the durability of your EBITDA growth, which was very strong in '25 and looks positioned to be healthy again in '26. Maybe taking a step back for a second. Since Liberty took over the growth algorithm has been fairly consistent and straightforward. You had rising popularity of the sport and brand combined with strong execution, monetizing revenue streams with a lot of untapped runway. In other words, there was comfort that regardless of the quarter or even year, there would be a lot of room to grow over the upcoming 3 to 5 years, and that vision has clearly played out. As you look out over the next 3 to 5 years now, though, how should we think about what sustains that attractive EBITDA growth profile as some areas either face tough comps or see new dynamics, whether it's lapping very strong sponsorship growth, managing the strategic balance and media rights, a race calendar that's already largely contracted or the new team payout structure? And finally, are there any underappreciated drivers or levers you'd point to that helps support growth from here?

Stefano, why don't you take this because you've obviously got the thoughts around the growth of the business more holistically. So I think that's a good place to start.

Absolutely. Thanks, Kutgun. I mean let me start on one thing that I take the opportunity to thank, first of all, our shareholders, our team, the FIA, the teams and all the relevant stakeholders because we have left an incredible moment of our sport. I remember all the earnings calls since I was involved in that, every time was what's next, what's next, what's next. That's a mindset, it's not a guidance. So we have always proven to invest in our future because we do believe in the growth of our sport. And we do believe that in the future, there are so many new opportunities to keep running this rhythm because this is exactly what we are doing together. And the more is strong the ecosystem, the more we are able to catch new opportunities and all the driving force of our revenue streams. And that's why you see what has happened so far in the last couple of years not only in terms of turnover, but also in terms of EBITDA. And this will continue because we see, as we said so many opportunities to keep growing. And the fact we are stabilizing in certain ways, certain promoters deal will allow us to leverage, as I said before, other investments that will bring us other opportunity to return. We are able -- we were able to explore the possibility of engaging with new categories of our partners and largely, for example, if you look at the financial services, we were able to contract with other -- with multiple partners because we are identifying different categories. We are opening up the opportunity of digitalization so new opportunity. We are having licensing that is just starting a great momentum with the big deals that we have just even today announced for the bigger relationship with business and so on. So there is a lot of things that we're going to bring and to keep growing the sport business at all level. That's I definitely confirm. That's our mindset, our approach, we wake up in the morning with these things. We are in a competitive world, not only on the track that remains our focus for sure, but that's the aim of all of us doing this job to increase the return of our investors for sure.

Yes, I think that's right, Stefano. And look, I think what's -- what people need to appreciate also is just the strength of Stefano's team and the creativity there and sort of what they've been able to accomplish over the last several years in terms of revenue streams and categories that may not have been fully sort of appreciated in terms of what they could be. And if you look out now, what they've done, for instance, in the U.S., where can you take -- what other geographic markets are still out there that are large significant and potentially untapped. So we are constantly looking for those opportunities and ways to drive the business. I think the heart of it is what Stefano keeps pounding at, which is to help the sport, the engagement that the sport creates and all that sort of stuff is really the fundamental basis for this.

Our next question today is coming from David Karnovsky from JPMorgan.

Maybe just zeroing in on the prior question, but for sponsorship, really strong results this year, though arguably, that sets up a tough comp this year. So wanted to get your view on '26 growth? And how we should think about the follow through, not only from deals executed last year, but maybe kind of what's in the pipeline?

I can answer on that, David, stay tuned. As we always shown, we are not -- and also, as Derek says, we are quite creative in finding new opportunities. You're going to see already this year some deals have lifted with new opportunity that we can offer new quality and new things that we want to offer. We don't have to forget one thing at the end of the day. Of course, now that the quantity is really, in a way, great, we need to focus on the quality of what we're bringing in. And this is really the thing that we are focusing because of course, we have a trajectory of new projects in the pipeline, but our focus is to keep the quality of the partner that now are trusting and following Formula One. Therefore, it's a trajectory that will continue. It's a trajectory that will enable us also in a competitive landscape to make some decision. And as we have in the field of promoters, we have the quality problem to have more often than -- more demand than offer. We are in the same spot also on the sponsorship side. So as I said, all the partners are happy. Our point is to create quality content for them, qualitative experience, qualitative value of what they're investing in Formula One. And that has been so far the case and will continue because, of course, the more we are able to succeed on it, we are able to attract even new ones approaching from other disciplines that is happening already, as you have seen, new partners to us.

Okay. And then maybe just following up here. The press release had called out contribution from digital advertising. I think that's the first. Can you just clarify, is that inventory on the website apps or F1 TV? And what's the opportunity here?

Well, the opportunity is quite important because now we are not only in the world of physical advertising, we have the digitalization that will enable us to use in all the different channel possibilities to put to the advertising but we have different platforms. We have the Podcast, we have YouTube. We have other social media opportunity, we will monetize in the future even stronger.

Our next question today is coming from Bryan Kraft from Deutsche Bank.

I guess I'll ask the Vegas question. It seems like Vegas didn't generate really incremental revenue versus last year, but it did generate significant incremental EBITDA due to the cost side. So I just -- I guess I wanted to ask, is that a fair assessment? And what do you think the opportunity is in 2026 to grow Vegas, both in terms of top line and bottom line? Are there any key changes in how you'll approach the event or go to market with tickets this year versus in 2025?

Stefano, do you want to just talk about Vegas broadly? And then Brian and I can you talk about some of the more specifics?

Sure. Sure, Derek. I mean, first of all, in a synthesis, or trying to be set at that point, it has been an incredible strong progress in what will deliver in the short term, even a big cash flow aim in that investment. I think that the key turning point of that has been our ticketing proposition. The fact that we have also a new different way of proposing the partner, the experience and the sales to them. But the most important one that will have a factor in the next couple of years is the new dynamic that we are creating with the community. And with the new things that we will announce in the due time, this will enable us to have an impact also on the P&L of this that is incredible, positive. And you will see soon that we want to make sure that this Grand Prix will keep being something incredible to be a sort of a spotlight of the year because the focus is to keeping that as a unique experience. And of course, you reduce the cost that is associated to the building up of this event in a new city like Vegas. And so therefore, the huge potential is definitely there. We have been very happy about the outcome of this year, and we're definitely going to be even more happy in the projects that we're going to do together in the next couple of years in front of us.

Yes. And then specifically on the -- on Vegas results for 2026, we did see revenue growth. It's a little bit difficult with our various categories within Vegas because it doesn't all show up in race promotion. Where we really saw growth was we saw increased sponsorship revenues. We saw increased hospitality revenue associated with Vegas. And then also 2026 was a year of trying to achieve some greater cost savings. So we definitely saw some cost savings there. So pretty significant incremental profitability. It just doesn't show up in the race promotion line. It shows up in other spots.

If I could just ask, I mean, it sounds like based on Stefano's comments that you do see the opportunity to continue to grow Vegas from here though. Just to make sure I'm interpreting that correctly?

Yes. Absolutely, yes. Sorry, I can't show the different numbers, yes.

Yes, very happy and excited about it.

Next question today is coming from Peter Supino from Wolfe Research.

A question on capital allocation and your communication and then another one on media rights. So I actually start with the media rights. We were excited about your deal with Apple because we've long believed that the movement of important sports rights to streamers was a growth opportunity for the intellectual property owner. In your case, we've had investors go as far as to call your deal with Apple "a disaster" because of their perception that Apple means less distribution for F1 in an important growth market, the U.S. And so I wonder if you could comment on why in your prepared remarks today, you expressed so much confidence that Apple can expand awareness and engagement of F1? And then on the communications side, and I guess this ties to capital allocation, your stock in the last 6 months has become, at least from our perspective, mired in sort of a myopic discussion about team payments, margins and operating leverage, and it's ironic because Formula One is a growth company. And so I wondered if you could talk at all about ways in which your communications might help investors appreciate the duration and magnitude of your growth opportunities going forward?

Stefano, why don't you start on Apple?

Yes. Thank you, Peter. I mean, first of all, I think that we are very, very happy about the deal with Apple for many reasons. And I think that it's important that the one that in our opinion, not so many, but anyway we respect that, of course, they don't understand the deal is because beyond that, there is a huge opportunity to increase the reach. There is an incredible opportunity for Apple to use all their channels, all their platform to promote our sport in a way that has never been done before. There will be the opportunity for the younger generation to be connected with the tool that is more logical for them to use in living the sport and our business. So I do believe that this will represent a big step opportunity to increase also our revenue streams, not only in terms of direct one, but also in terms of awareness in the American market that will enable us to convince also the one that are not believing on that, that is the right move. But on that, we are not even a single doubt. It's a great move. It's great things that will happen that will give a big boost to our performance in the American market. And that our community has not even a single doubt.

Yes. And I would add on that. I mean, look, everyone understands that the landscape has been changing for many years now. And the former sort of terminology around reach and things like that are a bit antiquated. And we see from an Apple standpoint is complete 100% dedication to F1. I saw Tim Cook and Eddy Cue at Super Bowl, and they've got the full weight of the organization behind it. And in that respect, it's not just sort of Apple TV, it's Apple music, Apple news, the Apple stores. So from a reach standpoint, there's many different ways that we will be able to reach and engage with our fans. I think the other thing that's interesting about Apple here, and we saw the news with the broadcasting races and IMAX theaters, right? And this sort of draws on my prior life in the pay television industry, like you wouldn't be able to do something like that necessarily with the traditional broadcaster because of a lot of restrictions that get put into traditional media deals, right? So Apple in that sense, and I think you'll see here in the near future, other announcements along those lines that will sort of bring more life into that. But I think there is that sort of ability to create new ground here, which we will do with Apple, are committed to do. I think the other thing that will be something to watch closely over the next 5 years is sort of what happens with the actual product. As we know, Apple is at its heart a tech company. We are a tech company. The broadcast is sort of very technical in nature, what you can actually do with that as a collective force will be interesting to watch over the next several years. I think on the second question, which was capital allocation. What we talked about at our investor conference was familiar themes, which clearly, we're in a deleveraging phase right now. Everyone understands that will sort of hit a point that we feel comfortable with respect to making additional investments. We've been pretty clear about our discipline in this respect and our desire to invest around sort of into the actual businesses themselves in and around those businesses, certainly, and then in similar sorts of asset classes where we've got great IP, low capital intensity and the ability for us to actually bring value either through insights we have, relationships we have, capital structures that we have, things like that, that will continue to allow us to have ourselves be a growth vehicle.

Certainly. Our next question is coming from Joe Stauff from Susquehanna.

I wanted to ask, just following up on the number of changes in F1 this year, engine, regulatory and how that affects certainly competition in parity. I'm sure that's naturally the goal over the long term sort of drives interest in the sport. But just wondering the best way to think about how maybe some of this higher competition could affect the P&L in the near term, call it, 2026 versus next year? What are the near-term sort of impacts of how we think about the financial implications of that?

Stefano, why don't you talk about the changes and what you're seeing and all that sort of stuff and then we can get into what the implications are?

Yes. Well, first of all, the implication -- let me start from one thing. The F1 has the duty to be always an innovator league sport, has been always -- that has been always the duty of our sport because by innovative, we can attract new investors. And the immediate effect of this regulation has attracted new manufacturers back into the sport. We have Audi, we have Ford, we have Honda, we have Cadillac that did come in because of this regulation. And if I may, before, of course, that has taken the second part of the financial, this would be an immediate effect on the financial because they will invest in our sport. They will invest in our initiatives. They will invest in all the ecosystem that would generate for them a sort of a platform to invest to let the brand be known by the customer. So that's a direct effect. On the other side, of course, there is a great interest, a great opportunity to showcase that the level of technology is always relevant to what is needed in the technological world. We have sustainable too. We have hybrid engine, and we've been always the first to believe on that. And we create excitement because the nature of the regulation will allow all the teams to develop this year car race the race. You're going to see a season where every race will be different, that will be, for sure, at the beginning bigger gaps that will be restricted because of the nature of the regulation. And therefore, as always, F1 understand when there is the need to move forward faster than the others, and that has been always our philosophy. And that will attract the interest not only of the one that I said to you before, but the new fans that through the new content that we are generating will connect to us and of course, by enable to be connected directly with them, we can even leverage the fact that we will offer something new to them. They're going to be a big push on the merchandising side of it. It's going to be big push also to our partner Quint to create new packages to promote to them. So this is the reason why we change the things for multiple reasons.

Yes. I mean just to follow on that. I don't think we sat here and said we're building a kind of incremental into the '26 business plan because of these changes. But that being said, as Stefano hit on quite clearly, these changes are going to drive continued interest and engagement in the sport. And hopefully, as he says bring in new participants, new fans and all the sort of accrued benefit that comes with that, that ultimately results in monetization. I think the other thing in parallel here that is happening this year, as you know, there are some big names that have come into the sport between Audi and Cadillac and Ford, Honda coming back. It's pretty significant in terms of someone like Cadillac spending on a Super Bowl ad and what they're doing to promote their team on the track. So this is all part of the evolution of what F1 is and Stefano and his team have done a fantastic job of cultivating relationships, cultivating these partnerships, building the sport into something that we do look at on a multiyear basis, not sort of how this is going to drive something in the next week or next month. And that's constantly what we're trying to do is built for the long term.

Understood. Maybe one just quick follow-up. Could you maybe just give us an update on the changes of the commercial team at Moto? And any other obviously changes that you're making, obviously, now that you own it for about 6 or 7 months and how to think about that?

Sure. This is Derek. I mean, as we stated, or Carmelo stated, we're in the process of sort of putting out our brand and executing behind it, really. And I think that part of that is what's happening at the track in the hospitality, and we're going to see some pretty dramatic improvements, I believe, over the course of this year, where we're putting these tracks -- our races, excuse me, as we're getting them closer to cities where we can benefit from all the infrastructure and the attendance and all of that sort of stuff, including, as we mentioned, in Adelaide, it's going to be right in the city center. And then how we go about sort of ultimately monetizing, commercializing that, we need the right team in place. And that's probably an area where we haven't had the sufficient sort of personnel there and we are building that. It's obviously not a heavy lift to sit there and hire folks up. So that's what we're in the process of doing. As we have stated previously, this will take some time in terms of the ultimate commercialization. We'll see some areas pick up sooner rather than later. But over -- if you look at F1 as a parallel, we're in our 10th year and you're still seeing some of these new revenue streams sort of being activated. So we continue to be even more sort of bullish on Moto even if the results don't necessarily show in the short term, it's clearly a long-term proposition for us, which is -- which -- and we like to invest in for that long term. So we're very excited.

Our next question is coming from Ryan Gravett from UBS.

Just to follow up on the media rights topic. Now that you're through the latest round of renewals, not just in the U.S. but some markets in Latin America and Asia as well. Just curious what your key learnings were and how you think you're positioned for the next round of renewals in Europe over the coming years? Do you expect similar interest for digital players in those markets as well?

Stefano, do you want to start?

Yes. Thank you. I mean, I think that our position with the media renewal, as you see, is quite dynamic. And I don't want to anticipate anything, but stay tuned in the next days, you will see something else coming up. The real point on that is the interest is very strong. The numbers are very strong. And the key focus on what we need to make sure we keep doing is understanding if we keep going because we are a worldwide market in the so-called traditional way of the delivering our sport to our credit broadcaster or in certain markets, there is an opportunity. As we did in U.S. to move into the streaming platform because each country is different. We have the incredible opportunity to be so strong worldwide, that we cannot have one single way of delivering our content in the same way and there are different time lines that we need to consider. So it's a bigger ecosystem. And I think that we have proven so far to make appropriate analysis before taking the final decision. So for sure, we want to be active and proactive in this world because the media right is not totally media right on the sports, the media rights are following other things in this moment. Therefore, I think that the reason why you see so many good news coming in is because we want to be proactive, and we feel that we are able to understand the evolution of the market, considering the difference that we have from area to area. But stay tuned because already next week going to be something new happening.

Our final question today is coming from Ian Moore from Bernstein.

When we look at trailing motor results, I think everyone sees an opportunity to drive monetization, particularly sponsorship to where F1 kind of is today. But F1 itself seems to continue to overdeliver on sponsorship. So I guess, more generally, what do you guys kind of see as the right mature mix directionally of media rights, race promo, sponsorship for these businesses? And then, I guess, for motorsport businesses more broadly?

Yes. I think -- look, it's early, but I think along the same lines is probably not a bad place to end up. And it's going to be over time that some of this stuff happened. But I think you've already seen that we're announcing new races next year, which will lead to some uptick there. And -- but then the sponsorship side of things probably lags a little bit as we build the brand and reengage with the potential partners. But I do think that the ability for us to draft off of what F1 has done there and the Liberty name being able to sort of have credibility around what we're going to deliver with respect to Moto is something that we are excited about. Again, it will take some time, but we feel comfortable that that's going to happen. I'll just end by saying there's good receptivity in the market. This -- we had a partner someone, as I mentioned in Barcelona last week, a lot of good enthusiasm, a lot of good energy there. There's a lot of good enthusiasm in the investor base around teams. I can't tell you how many people have reached out expressing interest. So I think people see it. The other thing about Moto in comparison to maybe other sports right now of its size, which tend to be more emerging sports, Moto has a long, long history to draw on and many stories to tell as a result and an established fan base and established brand recognition. So we're starting from a place that's much different, and hopefully, it's something that we can accelerate here over time.

Thanks, everybody, for your participation in today's call. Apologies if we didn't get to your questions, we'll look forward to speaking with more of you offline. Thank you.

Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.