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Hello, and welcome to Liberty Media Corporation's 2025 Year-End 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 February 26th. 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 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 for 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 1'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. 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's 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 forward 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, 1, to continue F1's growth trajectory, 2, to augment our portfolio with the acquisition of MotoGP, and 3, to execute the Liberty Live split off.

Following the split off last December, we are now a premier global sports investment vehicle, anchored by two world-class motorsport 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 the sport forward. Since closing the acquisition last July, we've continued building out 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, 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 shared momentum with a strong collective commitment to the future of our sport. Our motto, our three 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, 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-attend 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. 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 and 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 Sports 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 a new Concorde Agreement to cover the 5 years from 2026, which provides us with durable financial economics in all F1 constituents, a stable base to invest into the sport and drive long-term value creation and an even healthier ecosystem. 2026 should be an exciting season on track, with Cadillac and Audi joining the grid. The new regs, 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 visions. 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 and MotoGP's EUR 100 million revolver are both undrawn. At year-end, F1 OpCo net leverage was 2.8 times. This is down from 3.3 that we gave at 6/30 pro forma for the MotoGP acquisition, and MotoGP's net leverage was 4.7 times at year-end, down from 5.6 times at 9/30.

We expect to continue delevering at MotoGP this year. Liberty Media's overall net leverage was 3.6 times. Turning to the F1 business, I'll make some brief comments about the fourth quarter, but we'll 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 the fourth quarter compared to the prior year period. Q4 2025 had seven races compared to six races in Q4 2024, with Singapore being included in the current year period, but not in 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 in contractual increases. Media rights revenue grew due to underlying growth in contracts, continued growth in F1 TV, and the one-time 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 US. 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 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 third. Our financial results 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-K is filed, including results in U.S. GAAP for the full year 2024 on a pro forma basis. The majority of MotoGP's revenue and costs are euro-denominated. 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, we'll primarily focus on the full year.

Year-over-year comparisons are impacted by the mix of races, generally, MotoGP flyaway races carry higher costs, which includes freight and travel and higher earth fees. MotoGP held five races in the fourth quarter of both this year and the prior year. Revenue increased at MotoGP during 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 five out of 22 races being recognized this year versus five out of 20 races recognized last year. For the full year, MotoGP had 22 races compared to 20 in 2024. Revenue grew across all primary revenue streams, primarily due to the two 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 two 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 2024 was primarily related to 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 15th, 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 the split off. Grand Prix Plaza, rental income, and corporate expenses. As a reminder, Quint's 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 day. 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. With that, I will turn the call over to Stefano to discuss Formula 1.

Thanks, Brian. 2025 was a thrilling season as we celebrated the 75th anniversary of Formula 1 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 Constructor Championship. 2026 is set up to be another captivating season as it represent 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 preseason 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 welcomed over 400,000 fans over races weekend, and we had 19 events sell out with 11 setting new attendances records. The Paddock Club served 65,000 race day guests, up 10% on the prior year. Last season, many of our Paddock Club sold out, 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 a new facility at Turn one, 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 sessions was up +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.

Sprint popularity continues to increase, with sprint session viewership up to 10% year-over-year. Qualifying delivered the largest growth across all sessions, with audiences up 23% year-over-year. For the sprint races, we are currently in active discussion to expand the sprint format up to 12 races in 2027 due to the high demand from promoters and fans. The sprint format has also demonstrated impressive performance across fan engagement. Our YouTube content generated 1.65 billion views, up 48% relative to 2024. 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 three days of the preseason test in Bahrain reached over 8 million views on YouTube, which represent an increase of +64% compared with the Bahrain preseason testing session in 2025. 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 had 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. 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 4-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 two 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 will rotate with our Belgian race year by year throughout 2032, and 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 deal 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 showcased the very best of Formula 1. We sold out the weekend and welcomed over 300,000 fans to Las Vegas, while signing up a number of new event sponsors.

Content related to our race generated 1.8 billion impression over the weekend. We are gearing up for another phenomenal race this year. Picking up on sponsorship, we close out another strong year of growth and continue riding 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 multi-year deal. Equally impressive is growth across our other revenue stream, including licensing and hospitality. Our LEGO partnership delivered great results in its first full years, generating over 27.5 billion impression across market and activation. Pottery Barn 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 bar available in stores, driving enhanced retail visibility.

We are excited to roll out a new dimension of our partnership with Disney later this year. Following the successful launch of House 44, our premium Paddock Club hospitality partnership with Lewis Hamilton, Soho House, it will expand from five to nine races this year. Visitors to Grand Prix Plaza enjoyed 90,000 track riders 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 three more new locations planned to open later this year. Trackside retail sales grew over 30% last year, and F1 Hub pop-up merchandise experience operated in Austin, Miami, and Las Vegas.

These hubs 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 throughout creative activation, partnership, and collection, appealing to the 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 strategic 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. 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, tour racing and dramatic storylines. We saw a standout performance across the grid, with 13 riders on the podium across 10 teams. Congratulations to Marc Márquez on an extraordinary comeback and winning his 7th MotoGP World Championship. We welcomed a record 3.6 million attendance last season, up to 21% year-over-year, and set attendance record at 9 different circuits. First-time attendance, representing 27% of our total attendance last 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 double the attendance and video viewership year-over-year. Fans enjoyed musical acts by global artists, including The Script, Doja Cat, and Dola. The two-day event culminated in a live launch show featuring short 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, Wider Different, which bring our evolving brand positioning to life and create brand consistency and amplification across all fan channels and touchpoints. 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 indeed, the year with nearly 61 million followers across our own platforms, including 4.5 million followers on TikTok. Social engagement increases +61%, and video views across our digital platforms, excluding VideoPass, increases 20%. Fan consuming 1 billion minutes on our YouTube content last season. Average audience tuning into our broadcast grew 9% year-over-year. Saturday sprint races 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, grow 5% from 2024.

We recently extended our Sky Italia broadcast rights deal, and we have also renewed our Moto partnership through 2030. We also have some active year promoter 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 great Brazilian MotoGP rookie Diogo Moreira. Initial capacity in Brazil has already sold out, underscoring a strong demand alongside coverage from ESPN 41 will be the free-to-air broadcaster of the Brazilian Grand Prix, with 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 six-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 three-day fan experience. We look forward to continuing to update the investor community on our progress. 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?

Thank you. We'll now be conducting a question-and-answer session. If you'd like to be placed into question queue, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue, and in the interest of time, we ask you please ask one question and one follow-up, then return to the queue. Our first question today is coming from Stephen Laszczyk from Goldman Sachs. Your line is now live.

Hey, guys, thanks for taking the questions. Maybe two on margin at F1, if I could. Brian, appreciate the commentary on team payments 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.

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

Great. Thank you for that. 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 three to five years, and 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?

Yeah, certainly as we grow, as we grow primary revenue streams, you would expect to see some leverage around those revenues. We, you know, 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. You know, 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.

There is certainly costs associated with growing those revenues, but, you know, as we grow the primary revenue streams, we would hope to see some leverage there, but we're also gonna balance that with continuing to invest in the business and try new things and try to grow the overall pie.

Yeah, 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. Of course, the more we are getting stronger, the more we need to serve what is important to activate. That's our philosophy, and in all the revenue stream that we are bringing home, that's the approach. If I may, you know, also, when we are talking about the deal that we have with promoters 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's cost is always associated to an increase of marginality related to increase of our revenues.

Thank you. Our next question today is coming from Kutgun Maral from Evercore ISI. Your line is now live.

Good morning. 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 2060. 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'd be a lot of room to grow over the upcoming three to five years, and that vision has clearly played out.

As you look out over the next 3-5 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 in media rights, a race calendar that's already largely contracted or the new team payout structure. Finally, are there any underappreciated drivers or levers you'd point to that help support growth from here? Thank you.

Stefano, why don't you take this?

Yeah.

Because of, you've obviously got the, thoughts around the growth of the business, monolithically. I think that's a good place to start.

Absolutely. Oh, thanks, Derek. Thanks, Kutgun. I mean, let me start from one thing, that, I take the opportunity to thank, first of all, our shareholder, our team, the FIA, the teams, and all the relevant stakeholders, because we have lived an incredible moment of our sport. I remember all the owners called since, you know, 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. We have always proven to invest in our future because we do believe in the growth of our sport. We do believe that in the future, you know, there are so many new opportunities to keep running this rhythm, because this is exactly what we are doing together.

The more is strong, the ecosystem, the more we are able to catch new opportunities and all the driving force of our revenue streams. That's why, you know, you see what is what has happened so far in the last couple of years, not only in terms of turnover, but also in terms of EBITDA. This will continue because we see, as we said, so many opportunities to keep growing. The fact we are stabilizing in certain ways, certain promoters deal, will allow us to leverage, as I said before, other investment that will bring us other opportunities of return. We are able...

We were able to explore the possibility of engaging with new categories of our partners, enlarging, for example, if you look at the financial services, we were able to contract 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 a bigger relationship with Disney and so on. There is a lot of things that we're going to bring and to keep growing the sport, the business, at all level. That I definitely confirm. That's our mindset, our approach. We wake up in the morning with these, 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.

Yeah, I think that's right, Stefano. Thank you for those comments. 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. If you look out now, you know 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? 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.

That's great. Thank you both.

Thank you. Our next question today is coming from David Karnovsky, from JPMorgan. Your line is now live.

Hey, thank you. Maybe just zeroing in on the prior question, but for sponsorship, Stefano, really strong results this year, though arguably that sets up a tough comp this year. 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 are bringing in. This is really the things 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 partners that now are trusting and following Formula 1.

Therefore, it's a trajectory that will continue. It's a trajectory that will enable us also, in a competitive landscape, to make some decisions. As we have in in the field of promoters, we have the quality problem to have more often than more demand than offer. We are on the same spot also on the on the sponsorship side. As I said, all the partners are happy. Our point is to create quality content for them, qualitative experience, quality value of what they're investing in Formula 1. That has been, so far, the case. 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.

Right. Maybe just following up here, the press release had called out contribution from digital advertising. I think that's a first. Can you just clarify, is that inventory on the website apps or F1 TV? What's the opportunity here?

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 possibility to put, you know, good advertising. We have different platforms. We have, you know, the podcast, we have YouTube, we have other social media opportunity we will monetize in the future even stronger.

Thank you. Our next question today is coming from Bryan Kraft from Deutsche Bank. Your line is now live.

Well, hi, good morning. 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. I guess I wanted to ask, is that a fair assessment? 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? Thanks.

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

Sure, sure, Derek. I mean, first of all, I, in a synthesis, or try to be set at that point, is we have been an incredible strong progress in what will deliver in the short term, even a big, you know, cash flow in, 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, you know, the experience and the sales to them. But the most important one that will have effect in the next couple of years is the new dynamic that we're creating with the community.

With the new things that we will announce in the due time, this will enable us to have an impact also on the PNL of this, that is incredible, positive. You will see soon that we want to make sure this Grand Prix will keep being, you know, something incredible to be a sort of a spotlight of the year, because the focus is to keep in that as unique experience, and of course, it will re-reduce the cost that is associated to the building of this event in a new city like Vegas. Therefore, the huge potential is definitely there.

We have been very happy about the outcome of this year, and we definitely gonna be even more happy in the progress that we're gonna do together in the next couple of years in front of us.

Yeah, specifically, 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, also 2026 was a year of trying to achieve some greater cost savings. We definitely saw some cost savings there. Pretty significant incremental profitability. It just doesn't show up in the race promotion line. It shows up in other spots.

Thank you. If I could just ask, 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. Yeah.

Absolutely, yes. Sorry. Through the different numbers, yes.

Yeah, we're very happy. Very happy and excited about it.

Great. Thanks.

Thank you. Next question today is coming from Peter Supino from Wolfe Research. Your line is now live.

Good morning, everybody. A question on capital allocation and your communication, then another one on media rights. I'll 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, quote, "a disaster," unquote, because of their perception that Apple means less distribution for F1 in an important growth market, the U.S. 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?

On the communication side, I guess this ties to capital allocation, your stock in the last six months has become, at least from our perspective, mired in a sort of a myopic discussion about team payments, margins, and operating leverage. It's ironic because Formula 1 is a growth company. 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. Thank you.

Stefano, why don't you start on Apple?

Yep. Thank you. Thank you, Peter. I mean, first of all, I think that, you know, we are very, very happy about the deal with Apple for many reasons. I think that is important that the one that, in our opinion, and not so many, but anyway, we respect that, of course, they don't understand the deal, is because behind 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 a tool that is more logical for them to use in delivering the sport and our business.

I do believe that, you know, this will represent a big step opportunity to increase also our revenue streams, not only in terms of that one, but also in terms of awareness in the American market, that will enable us, you know, to convince also the one that are not believing on that is the right move. On that, we have not even a single doubt. It's a great move, it's a great thing that will happen, that will give a big boost to our, you know, performance in the American market. On that, you know, our community has not even a single doubt.

Yeah, I would add on that. I mean, look, everyone understands that the landscape has been changing for many years now. You know, the former sort of terminology around reach and things like that are a bit antiquated. What we see from an Apple standpoint is, you know, complete 100% dedication to ... to F1. I saw Tim Cook and Eddy Cue at the Super Bowl, and, you know, they've got the full weight of the organization behind it. In that respect, it's not just sort of Apple TV, it's Apple Music, Apple News, the Apple Store. 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, you know, that's interesting about Apple here, and we saw some news with them broadcasting races in IMAX theaters, right? This sort of draws on my prior life in the paid television industry. Like, you wouldn't be able to do something like that necessarily with a traditional broadcaster because of a lot of the restrictions that get put into traditional media deals, right?

Apple, in that sense, and I think you'll see here in the near future, other announcements along those lines that will sort of breathe more life into that. I think there is that sort of ability to create new ground here, which we will do with Apple and 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, you know, 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 you'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 will continue to allow us to, you know, have ourselves be a growth vehicle. Okay, thank you. Operator, next question.

Certainly. Our next question is coming from Joe Stauff from Susquehanna. Your line is now live.

Thank you. Good morning. I wanted to ask, just following up on the number of changes in F1 this year, engine, regulatory, and how that affects certainly competition and parity. I'm sure that's naturally the goal over long term, sort of drives interest in the sport. Just wondering the best way to think about how maybe some of this higher competition could affect the PNL 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.

Yeah. Yeah. Well, first of all, the implication, let me start from one thing. The F1 has the duty to be always an innovator league sport. It has been always that has been always the duty of a sport, because by innovating, we can attract new investors. The immediate effect of this regulation has attracted new manufacturer back into the sport. We have Audi, we have Ford, we have Honda, we have Cadillac. That did come in, you know, because of this regulation. If I may, before, of course, that I take in 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 is will generate, you know, for them, a sort of a platform to invest, to let their brand be known by the customers. That's a direct effect. On the other side, of course, there is a great interest, a great opportunity to showcase, you know, that the level of technology is always relevant to what is needed in the technological world. We have sustainable fuel, we have hybrid engine, and we've been there always, the first to believe on that. We create excitement because the nature of the regulation will allow all the teams to develop this year car, race by race. You're gonna see a season where, you know, every race will be different.

There will be, for sure, at the beginning, bigger gaps that will be, you know, restricted because of the nature of the regulation. Therefore, as always, F1 understand when there is the need to move forward faster than the others, and that has been always our philosophy. 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. Of course, by enable to be connected with them, we can even leverage the fact that we will offer something new to them. There's gonna be a big push on the merchandising side of it. It's gonna be big push also to our, you know, our partner, Quint, to create new packages to promote to them.

This is the reason why we change the things, for multiple reasons.

That's. Yeah, I mean, just to follow on that, I don't think we sat here and said, we're building, you know, a ton of incremental into the 2026 business plan because of these changes. That being said, as Stefano hit on quite clearly, these changes are gonna drive continued interest and engagement in the sport. Hopefully, as he says, bring in new participants, new fans, and all the sort of, you know, accrued benefit that comes with 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. You know, this is all part of the evolution of what F1 is. Stefano and his team have done a fantastic job of cultivating these relationships, cultivating these partnerships, building the sport into something that, you know, we do look at on a multi-year basis, not sort of how this is gonna drive something in the next week or next month. That's constantly what we're trying to do, is build 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, you know, six or seven months, and how to think about that?

Sure. This is Derek. I, you know, we, as we stated, or Carmelo stated, we're in the process of sort of putting out our brand and executing behind it, really. I think that part of that is what's happening, you know, at the track. In the hospitality, we're gonna see some pretty dramatic improvements, I believe, over the course of this year. Where we're putting these tracks as 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 gonna 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. 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. Over you know, if you look at F1 as a parallel, we're in our tenth year, and you're still seeing some of these new revenue streams sort of being activated.

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, and we like to invest into that long term. We're very excited.

Thank you. Our next question is coming from Ryan Gravett from UBS. Your line is now live.

Hi, guys. 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 the key, 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 from digital players in those markets as well? Thanks.

Stefano, do you want to start?

Yeah. Thank you. I mean, I think that our position with the media rights renewal, as you see, is quite dynamic. 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, you know, if we keep going, because we are a worldwide market in the so-called traditional way of delivering our sport through our incredible broadcaster, or if in certain market 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 timelines that we need to consider. It's a bigger ecosystem, and I think that we have proven so far to make a proper analysis before, you know, taking the final decision. For sure, we want to be active and proactive in this world because the media right is not only a media right on the sport. The media rights are following other things in this moment.

I think that the reason why you see so many good deals coming in is because, you know, we want to be proactive, and we feel that we are able to understand the evolution of the market, considering the differences that we have from area to area. Stay tuned, because already next week, there will be something new happening.

Well, we look forward to that.

Thank you.

Thank you. Our final question today is coming from Ian Moore from Bernstein. Your line is now live.

Hi. Thank you. When we look at trailing Moto results, I think everyone sees an opportunity to drive monetization, particularly sponsorship, to where F1 kinda is today. F1 itself seems to continue to over-deliver on sponsorship. I guess more generally, what do you guys kinda 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?

Yeah, I think, look, it's early, but I think, you know, along the same lines is probably not a bad place to end up. You know, it's gonna be over time that some of this stuff happens. I think you've already seen that we're announcing new races next year, which will lead to some uptick there. The sponsorship side of things probably lags a little bit as we build the brand and we engage with the potential partners. I do think that there's the ability for us to draft off of what F1 has done there and the Liberty name, of being able to sort of have credibility around what we're gonna build with respect to Moto is something that we are excited about.

Again, it'll take some time, but we feel comfortable that that's gonna happen. I'll just end by saying there's good receptivity in the market. We had a partner summit, as I mentioned, in Barcelona last week. A lot of good enthusiasm, a lot of good energy there. There's a lot of enthusiasm, 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 that size, which tend to be more emerging, sports, Moto has a long, long history to draw on and a lot, and many stories to tell as a result, and an established fan base, and established, you know, brand recognition. We're starting from a place that's much different, and hopefully it's something that we can accelerate here over time.

Thank you very much.

Yeah, thanks again.

Thank you.

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.

Welcome to Liberty Media Corporation's 2025 Third Quarter Earnings Call. [Operator Instructions] As a reminder, this conference will be recorded November 5. I would now like to turn the call over to Shane Kleinstein, Senior Vice President, Investor Relations. Please go ahead.

Thank you, and good morning. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in 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 such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including adjusted OIBDA. The required definition and reconciliation for Liberty Media Schedule 1 can be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Speaking on the call today, we have Liberty's President and CEO, Derek Chang; Chief Accounting and Principal Financial Officer, Brian Wendling, Formula One, President and CEO, Stefano Domenicali; MotoGP, CEO of Carmelo Ezpeleta, and other members of management will be available for Q&A. With that, I'll turn the call over to Derek.

Thank you, Shane. Good morning. We are entering the end of the year on a high note. It has been an incredibly productive period for Liberty. And we have executed on the priorities we laid out at the beginning of the year. First, on our planned split-off of Liberty Live, we currently expect to complete the split-off on December 15, and the stock is expected to begin trading as a stand-alone asset-backed equity the following day. Our shareholder vote will be on December 5. The split-off is expected to better highlight the value of our attractive position in Live Nation and an asset-backed equity that we believe will benefit from enhanced trading dynamics. Looking now at our operating businesses, we continue to invest behind their sustained growth. These aren't just sports properties, they're global entertainment brands. With this broader evolution comes expanded commercial opportunities to monetize a growing fan base with creativity and innovative leadership. Looking first at Formula One, we continue to build upon the commercial momentum we've seen all year. Just this morning, F1 renewed with their global partner, Heineken, in another multiyear deal. Underlying fundamentals are robust and support strong financial results this quarter and year-to-date despite having one fewer race. They have successfully accelerated renewal cycles across revenue streams, extending media rights agreements and renewing multiple promoter partners on attractive terms. Across sponsorship and licensing, F1 has partnered with an increasing number of high-quality consumer names, including, Hello Kitty, Pottery Barn and more as they consistently bring the sport closer to today's multidimensional fan. Additionally, F1 signed a landmark distribution partnership with Apple in the U.S. that seeks to highlight the innovation of both global lifestyle brands and position us well for the next leg of growth in the U.S. market. Stefano will provide more detail on this shortly. Next, on MotoGP, we closed the acquisition on July 3 and have been working diligently with their management team and supporting their strategic plan. We're fortunate to have the involvement of Chase Carey, Stefano Domenicali and Sean Bratches. Sean, as many of you know, previously led the commercial operations at F1. The top priorities at MotoGP as laid out last quarter remain enhancing the Grand Prix experience, expanding MotoGP's global footprint through capturing new fans and deepening engagement with existing fans and scaling our sponsorship roster. We are also in the early days in identifying areas of partnership between Formula 1 and MotoGP, some of which are more back-end in nature around sharing best practices and some of which we believe will drive commercial upside in the future. We are developing our long-term plans for MotoGP's broader monetization opportunities, many of which will build upon growth initiatives already underway prior to Liberty's ownership. Their adjusted OIBDA performance year-to-date reflects elevated costs as these investments are already being made with the associated revenue growth to come. We don't expect a material change in the investment cycle ahead, but we do anticipate continued growth in the cost base as they scale efforts to build commercial functions, enhance sponsorship capabilities and more. We look forward to continuing to update you on our progress, and we'll have more to share on behalf of Liberty and our portfolio of companies at our Investor Day on November 20, just before the Las Vegas Grand Prix. Before turning it to Brian, I want to also recognize and thank John Malone. I'm sure you all saw our press release last week, noting that John will be stepping down from the Liberty Media Board and assuming the role of Chairman Emeritus and Dob Bennett, Liberty's long-time Board member and former CEO, will be named Chairman. On behalf of Dob and myself as well as the entire Liberty Board and management team, it has been a privilege working with and learning from John for over 3 decades of partnership. His indelible influence on the industry, our company and us personally goes without saying. And I'm sure I speak on behalf of all of you in saying that we look forward to having John for our annual Q&A at Liberty's Investor Day in a few weeks. Now I'll turn it over to Brian for more on Liberty's financial results.

Thank you, Derek, and good morning, everyone. At quarter end, Formula One Group had attributed cash and liquid investments of $1.3 billion, which includes $571 million of cash at Formula One, $176 million of cash at MotoGP and $78 million of cash at Quint. Total Formula One Group attributed principal amount of debt was $5.1 billion at quarter end, which includes $3.4 billion of debt at F1, $1.2 billion of debt at MotoGP, which leaves $523 million at the corporate level. F1's $500 million revolver and MotoGP's EUR 100 million revolver both remain undrawn at quarter end. We refinanced MotoGP's debt in August, shortly after closing. We priced approximately $230 million of new Term Loan A denominated in U.S. dollars, a new EUR 800 million Term Loan B and a new $100 million multicurrency revolver, all at reduced rates. with future reductions in margin expected as the business delevers. This new capital structure reduces interest expense, extends our maturities and presents a currency mix that better reflects the euro and U.S. dollar exposure of the business. In F1, we obtained an incremental $850 million Term Loan B and an incremental $150 million Term Loan A in July to fund a portion of the MotoGP acquisition. At quarter end, F1 OpCo net leverage was 3.0x, down from the initial 3.3x we gave as of 6/30 pro forma for the MotoGP acquisition. F1's covenant leverage was below the threshold of 3.75x to trigger a permanent reduction in the Term Loan B margin to SOFR plus 175 basis points. Interest will begin accruing at the lower rate promptly after earnings. MotoGP net leverage was 5.6x. In the near term, we very much expect to delever at both Formula 1 and MotoGP. Turning to the F1 business. I'll make a few brief remarks on the third quarter, but we'll focus on the year-to-date comparisons. A reminder that every quarter in 2025, luckily we will have incomparable race count and mix, which will impact quarterly comparisons. And our year-to-date 9/30 figures also have an inconsistent year-over-year race numbers and mix. The majority of the variability in Q3 year-over-year results is due to fewer race held in the third quarter compared to the prior year period. Q3 '25 held 6 races compared to 7 races in Q3 '24 with Singapore being included in the prior year, but not in the current period. Year-to-date through the third quarter, F1 also had one fewer race with Singapore included in the prior year period, but not in the current period. Despite one less race, the business is performing incredibly well with revenue up 9% and adjusted OIBDA up 15% and growth across all revenue streams. Sponsorship revenue continues to benefit from new partners and underlying growth in renewals in existing contracts. Media rights revenue increased due to underlying growth in contracts, strong revenue growth at F1 TV and the onetime benefit of the F1 movie revenue in the second quarter. Race promotion revenue was down slightly as underlying growth in contracts nearly covered the impact of one fewer race in the period. Other revenue grew driven by higher hospitality revenue, including from Grand Prix Plaza licensing revenue and increased freight. Note that we operated the same number of Paddock Clubs in both current and prior year periods, given that the Singapore Paddock Club is operated by the local promoter. Adjusted OIBDA increased on a year-to-date basis as revenue growth continues to outpace increased expenses. Team payments were flat year-to-date as the impact of 1 fewer race was offset by expected higher team payments for the full year. Team payments as a percentage of pre-team share adjusted OIBDA were 61.5% for the full year 2024 as a reminder, and we continue to expect leverage against that 2024 percentage for the full year of 2025. A reminder that team payments are best analyzed on a full year basis due to quarterly fluctuations in the team payments as a percent of adjusted OIBDA. Turning now quickly to the MotoGP's results. As a reminder, we closed the MotoGP acquisition on July 3 and began consolidating their results effective 7/1/25. Our financial results are presented on a pro forma basis in the release and in MD&A as though the transaction occurred on January 1, 2024, and a trending schedule will be posted to our website after the 10-Q is filed, including the results in U.S. GAAP for the full year 2024 on a pro forma basis. Also note that our U.S. GAAP reported results for Moto GP's revenue streams are more aligned to our current F1 reporting with previously disclosed MotoGP commercial revenue updated to include only sponsorship with hospitality being moved into other revenue. Majority of MotoGP's revenue and costs are euro-denominated and as such, are subject to translational impacts from foreign currency movements. In the following discussion of results, I'm going to focus on constant currency results. Similar to F1, I'll make brief remarks on the third quarter, but focus on year-to-date comparisons as we believe that is the most appropriate way to analyze the business. Year-over-year comparisons are impacted by the mix of races and generally, MotoGP flyaway races carry higher costs, including freight, travel and team fees. MotoGP held 7 races in the third quarter of both this year and the prior year. Revenue declined in the third quarter as increased race promotion fees due to race mix and contractual uplifts was offset primarily by lower proportionate recognition of season-based income with revenue from 7 out of 20 races recognized last year versus 7 out of 22 recognized this year. Year-to-date, MotoGP held 17 races compared to 15 races through the same period last year. Revenue grew across race promotion and media rights, primarily due to the additional events held and contractual fee increases. Sponsorship was relatively flat as contractual uplifts were offset by the impact of race mix on certain sponsorship revenues. Other revenue also increased from growth in World Superbike fees and an increase in hospitality revenue. Adjusted OIBDA declined year-to-date as the revenue increase was more than offset by higher cost of motorsport revenue due to mix of races, which drove increased freight and travel expenses as well as an increased SG&A due to higher personnel costs with strategic headcount increases to grow certain commercial functions, as Derek mentioned. Year-to-date results were also impacted by 2024 benefiting from a bad debt reversal early in the year. Looking briefly at Corporate and Other results year-to-date, revenue was $266 million, which includes Quint results and approximately $19 million of rental income related to the Las Vegas Grand Prix Plaza. Corporate and other adjusted OIBDA loss was $7 million and includes Grand Prix Plaza rental income, Quint results and corporate expenses. As a reminder, Quint's business is seasonal with the largest and most profitable events taking place in Q2 and Q4. And note that Quint's intergroup revenue from MotoGP beginning in July is now eliminated within our consolidated results. Turning to Liberty Live Group. There's attributed cash of $297 million. And on September 12, the Liberty Live Nation or Live Nation margin loan was amended to extend the maturity date from '26 to '28 and reduce the spread from 2% to 1.875%. $400 million of the margin loan capacity is undrawn at quarter end. And as of November 4, the value of the Live Nation stock held at Liberty Live Group was $10.5 billion, and we have $1.15 billion in principal amount of debt against these holdings. Liberty Formula 1 and MotoGP are all in compliance with their debt covenants at quarter end. And with that, I will turn it over to Stefano to discuss Formula One.

Thanks, Brian. What an incredible season we are wrapping up at Formula One with thrilling on track action and all teams scoring points. 9 drivers from 7 different teams have stood on the podium, highlighting our depth of talent in one of the most competitive season of the recent time. McLaren claimed the Constructor championship in Singapore, and we are watching the continuing battle for the driver championship as we head into the final stretch of the season. Our global fan base continued to grow with exceptional engagement across the board. We have seen 5.8 million attendees throughout Mexico, up 4% relative to last year 2024 record at this time. Since summer break, Monza welcomed around 370,000 fans over its race weekend, while Austin and Mexico each welcomed over 400,000 fans. We are also seeing record percentage of female and under 35 attendees, reflecting the growing and broadening appeal of F1 events. The Paddock Club have serviced nearly 36,000 race day guests through the end of the third quarter, up 8% from same point last year. The Paddock Club remains sold out for the remainder of the season and early partners request for 2026 already signaled robust demands ahead. Given the consistent sell-out trends at many races, we are looking to add structure in partnership with promoters to increase capacity in some markets in 2026 to accommodate pent-up demand. Engagement and reach across this platform remain robust. We had a strong first half of the season with cumulative viewership up 10% year-over-year across broadcast and digital platforms and performance remained excellent into the third quarter. Nearly all races recorded year-over-year live viewership growth in F1's top 15 markets. The Sprint race format continues to draw fans with each Sprint season showing year-over-year viewership growth. Viewership for YouTube by Lights increased over 20% as of the third quarter, and the majority of the audience is under 35. F1 is still the fastest-growing major sport on social fueled by both an exciting on-track season and increased cultural relevance globally, highlighted this quarterly with buzz around the F1 movie. Social media followers are up nearly 20% of the third quarter to 111 million with notable growth on TikTok. Following the F1 movie, we were thrilled to announce that we are deepening our partnership with Apple as F1 news U.S. broadcaster distributor in a 5-year deal beginning in 2026. This is a partnership between 2 iconic global brands with a shared passion for innovation, entertainment and technological excellence as well as a very aligned customer demographic. We are working with Apple on an ambition plan to elevate how the sport is presented to U.S. fans through innovation on the broadcast feed amplified across their vast ecosystem of products and services, whether streaming the race itself or showcasing content on Apple News, Apple Sport, Apple Music, Apple Match, Apple Fitness and more. As shown by the success of the Apple movie, Apple marketing and activation power, coupled with its integrated ecosystem can have a significant multiplier effect on brand awareness. We look forward to sharing more with Apple in the coming months. Turning to other commercial updates. We continue to see competition for our exclusive rights and IP across revenue streams. We had another active quarter of media rights negotiations. We recently announced that Grupo Televisa has become our official broadcast partner in Mexico throughout 2028, and we are close to finalizing the remaining agreements required for territories where rights expire at the end of the season, including Japan, Latin America and Pan Asia. We are constantly innovating across both content and distribution to keep the fan engagement. F1 TV is a strategic cornerstone, not only for the flexible and dynamic ways we can distribute race content, but also the direct access it gives us to fan data and insight. We recently announced a new show, Passenger Princess, which aired on YouTube. The first episode featured George Russell and reached 1.5 million views within 1 week of release. This underscore our original content strategy, embedding F1 deeper into pop culture, reaching new audiences beyond race weekend and strengthening our always-on approach to connect with fans. Turning to race promotion agreement. F1 has an active quarter. We renewed Azerbaijan 2030, Monaco through 2035 and Austin through 2034. We are counting down to another unforgettable Las Vegas Grand Prix and are very pleased with the progress we have made this year. Congrats to the Vegas leadership team on the momentum. With a couple of weeks to go, we are pleased to say we are on track with our ticket sales targets. We have a full week of programming across Las Vegas kicking off on Wednesday and culminating on Saturday night with a very special 2 hours [ pre-greet ] show and post race entertainment. On F1 sponsorship, we are finalizing out an incredible strong year with sustained momentum and visibility into our 2026 pipeline and beyond. We continue to roll out new dimension of our partnership with LVMH, including French Bloom and Volcan Tequila. Closer integration between our F1 Global and Vegas Sponsorship team is also benefiting their commercial momentum with strength in Vegas sponsorship coming from both renewal as well as new logos partnering this year. The growth across our other revenue stream is equally impressive, especially in licensing as we continue scaling up our partnership announced early this year. We have also renewed Momentum Group until 2030 to run the F1 authentic website and supply F1 official licensing show cars. We recently announced partnership with Disney, Pottery Barn Teens, Pottery Barn Kids and Hello Kitty, all of which should be a long tail benefit into next year. The announcement of our Hello Kitty and F1 Academy product collaboration reached an outstanding 3.7 million fans over the 3-day announcement period and increased our F1 Academy social media followers by 5,000 across all platforms on the day of our announcement. [ Tracks ] retail sales have grown over 20% through the third quarter. Looking ahead, we aim to continue growing our retail footprint of the track in key races location. We opened a pop-up F1 hub store during race weekend in both Miami and Austin as well as our store activation, where we celebrated F1 75 through historic and new merchandise lines. Strong sales and traffic reinforces the untapped opportunity in fan merchandising in these key location. Formula One momentum continued to span every part of our business. We have built a powerful platform that has enjoyed tremendous growth, and we are increasingly confident in the continued upside ahead. We believe the groundwork we are laying today will continue to benefit our partners, shareholders and most importantly, our fans. I look forward to providing more details on our sports and growth momentum at Liberty's Investor Day and the F1 Business Summit in a few weeks. So for the moment, avanti tutta, full speed ahead. And now I will turn the call to Carmelo to discuss MotoGP.

Good morning, and thank you, Stefano. We are 4 months into our partnership with Liberty Media and are proud to be working together to drive MotoGP forward for the benefit of our fans and partners. We continue to see many ways that we can benefit from Liberty and Formula One's expertise. and have started collaboration on ways to work together. We look forward to sharing more of our strategy at Liberty's Investor Day later this month. The 2025 MotoGP season continues to deliver exciting moments on track. Congratulations to Marc Marquez who secured his seventh MotoGP World Championship at the Japanese Grand Prix, capping a remarkable multiyear comeback from injury and securing his place in MotoGP history. Despite Marquez dominance this year, we have had 13 different riders on the podium across 10 teams and all 5 manufacturers. And in Moto2 and Moto3, we are seeing some of the tightest racing in all motorsport from tomorrow's MotoGP stars. We continue to welcome record crowds across the calendar. This year, we set attendance record at 8 different [indiscernible]. Attendance is up to 4% through Malaysia, and we expect another sold-out crowd in Malaysia next week. We are building on the momentum from last year, brand refresh and our early investments are already yielding success. Social engagement is up to nearly 120% through the third quarter, excluding video pass across our digital platforms has increased over 30% year-over-year, and our social reach has grown nearly 30% year-over-year, driven by TikTok. We look forward to hosting our second season launch event next year in Kuala Lumpur, which is another opportunity to provide content for fans outside of race weekend. Average audience tuning into our broadcast grew 17% through the third quarter, and we are seeing great viewership numbers from the Saturday sprint races, which are closing the gap to Sunday race coverage and demonstrating the value for MotoGP partner across the full race weekend. Subscribers to Video Pass, our direct-to-consumer video services are up 6% from 2024. We have had positive renewals of a number of promoter relationship this year, including Japan through 2030 and Catalonia, Valencia, France, Germany and San Marino through 2031. Early this summer, we announced our 2026 calendar, which we will see MotoGP Race in Brazil for the first time since 1989 and a return to Buenos Aires in 2027. This will both be fantastic location for MotoGP in important growth markets in South America as we work towards optimizing both our circuits and race calendar. We are making investment to support our commercial activities with the goal of expanding our exposure to a wider global audience while maintaining the sport heritage. We have renewed our broadcast agreement with SuperSport. Additionally, we have seen a resulted to a multiyear partnership as the official lubricant supplier of Moto2 and Moto3 and successfully renewed our LIQUI MOLY partnership. Sponsorship remains a large growth opportunity for us, but we expect that it will take time to build our pipeline. 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. For those of you on the call, we look forward to seeing you in a few weeks at this year's Liberty Media Investor Day. We will be hosting our Investor Day alongside the F1 Business Summit in Las Vegas on Thursday, November 20, in advance of the Grand Prix. We hope to see you there. We will have limited in-person attendance for the Investor Day, but all presentations will be webcast. Tickets are available for purchase for the F1 Business Summit. Please check out their website and e-mail our IR team once purchased, so we can confirm their attendance. Before we open for Q&A, I want to take a moment to recognize Shane Kleinstein, our Head of Investor Relations, on her last earnings call with us. She has been instrumental in our Investor Relations and broader communications functions at Liberty and has left an indelible mark on our company. On behalf of the entire Liberty Media team, thank you, Shane, and we wish you the best in your future endeavors. We will have a new Head of Investor Relations joining us and look forward to sharing that update in the future. In the meantime, we encourage you to please continue to reach out to the rest of the IR team, our e-mail [email protected] with questions. We appreciate your continued interest in Liberty Media. And with that, we'll open the call up for Q&A. Operator?

[Operator Instructions] The first question today comes from the line of David Karnovsky with JPMorgan.

Maybe for Derek and Stefano, on the U.S. rights agreement, I think the dollar figures are fairly straightforward, but I wanted to see if you could speak a bit to how you're looking at this agreement specifically from an engagement perspective and how investors should perceive any risk regarding a move away from linear or ESPN? And what gives you comfort that you can continue to grow the U.S. media audience?

Stefano, do you want to take that?

Yes, of course. Thanks, David, for the question. I mean I think that, as you know, U.S. market is very, very important for our growth. And the fact that we have done an incredible deal with Apple, it's because we do believe that all the elements that will be important for this kind of growth are there. We know that we can count on an incredible brand that is not a brand, it's a social relevant brand. And because our -- the nature of our fans is young, it's dynamic, it's multitasking. I think that the decision was the right one. And in terms of engagement, we are totally committed to make sure that all the content, all the platforms that are through the Apple ecosystem can be provided. We're going to increase even more the ratio we have today. So therefore, as always, when you take a decision on the business side, you put balance risk versus opportunity. And I think on that, it was pretty clear that the risks were minor and the opportunities are huge. Therefore, we are really looking forward to embrace new chapter with them because we know them, we know they can be very progressive in proposing new things that will be very, very important to make sure that the things that I said before, David, on social relevancy of our sport will increase and will go. And of course, this is a multiyear deal because we know that we need to be resilient on this approach. And that's why we are totally convinced that this is an incredible partnership that will be stronger and stronger in the future.

Yes. Thanks, Stefano. I think I would add that the way we look at it now, and I think a lot of folks are looking at it this way is sort of the definition of reach, which historically has really revolved around sort of the broadcast window on television. And I think that's, in our minds, is an antiquated definition of reach at this point in the way a company like Apple and a partner like Apple can touch many different demographics in many different ways. And so I think that's an important thing to understand in terms of how we're thinking about it. I think Stefano's other point about this being a longer-term deal is important because when you're thinking about a company like Apple and the way that they invest behind the product. It's not like the product in the fifth year is going to look much different, I guarantee you, than what you see in the first year. And that's going to be through years of investment in what they do. And I think we are at a great sort of point in time in the U.S. with the races that we've had here with the support that we've received and the new fans that we brought in with the new sponsors we brought in to really take all of this and sort of move it forward in a whole different way with a partner like Apple. And I think we'll see the fruits of this over the next several years.

Maybe just as a follow-on, it would seem to us that with Apple TV, you have an agreement now with a partner that has reach across most of your territories, and they have rights to the F1 movie. And logically, they could be a bidder in more regions. So I just wanted to get your view on that and whether that global factor was something you considered in your decision to partner here.

Yes, I think it's important -- Go ahead, Stefano, I'll let you start.

Sorry for that. Well, I think that what I can say is that, as you know, we are a worldwide sport where the fragmentation of different deals is crucial to be in the right market with the right partner. And what I can say straightaway is that the fact that we signed with Apple immediately has been a sort of a wake-up call from the actual partners around the world to say, hey, we want to stay with you, we want to invest. So what's next? I think that vitally, it's great because it will attract the fact that Apple is a global partnership. And for sure, if we have countries where we can see different kind of potential where we can work together, we will discuss with Apple, too. But this doesn't mean that we will cover the entire world with only one Apple deal because we do believe that at this time, we are much stronger the way we have structured all our deal around the world on the broadcast side. But for sure, the effect of having said the deal with Apple has been already big around the world.

Yes. And I would add, just in all of these markets globally, you almost have to still take it market by market. The dynamics within these markets have been shifting. And in some places, you have new entrants in other places, there's consolidation and sort of depending on when your deals turn out, those competitive dynamics can come into play. And I think having someone like Apple, and we're in early discussions or early stages of this relationship. And so where their interest is in other locations globally, I think we will see over time. But I think we all understand on the call that any time you have a more competitive environment, you're better off. So we'll leave it there.

The next question is from the line of Bryan Kraft with Deutsche Bank.

I had 2, if I could. I guess, first on Vegas, it sounds like you're on track for your budgeted ticket sales for Vegas. I was wondering about the cost side. Can you talk about how you're tracking your cost budget for the event? And then separately, just on U.S. media rights, -- should we expect to see a meaningful step-up in media rights revenue in the U.S. next year when taking into account both the Apple rights agreement and the loss of the F1 TV subscription revenue given that Apple will be taking that over in the U.S.

If I may start, Derek, Yes. Thanks, Bryan, for the question. I mean, first of all, Vegas, Vegas is one of our priority. As I said, ticket sales are on target. But you correctly take one point that for sure, what we have experienced was a big attention on the cost side of the organization. And after the first years, I would say that we are on track in minimizing in the right way the cost because at the beginning, you try to cover a new investment in the right way. And now with all the new partners and the fact that we have renewed for big deals for the next couple of years, we are definitely on track also in controlling the cost of it. I have to say that we have seen a big shift on the community perceive on what Vegas race represent for them. Therefore, working together with them, I think, is beneficial and has already an impact this year with regard to the fact that the cost will be reduced definitely. And this will have, of course, a positive impact at the end on the P&L of the race. Of course, as you know, we are working very hard to make sure that the event will be great, as always has been. We have, as you know, shipped the starting time of the race at 8:00 p.m. on Saturday night. And this is, for sure, very, very important, the fact that the community is really embracing, as I said before, this event. So cost is definitely one lever that we want to make under the control of it, and we are on track also on that. Then with regard to the second question, you asked me, you're right, if we can expect more money. As you know, we cannot give any guidance on that. But I would say what is important to say it's the F1 subscription on F1 TV is a great asset also for Apple. We have a great community that will connect through the Apple platform with our popular F1 TV. So I don't expect that this will have a negative effect. Actually, it will be the opposite because I think that this community is quite solid and the fact that we'll be embraced on Apple platform will increase the value globally for the future of both of them together.

Yes. And I just want to say to our team in Vegas who've done a fantastic job, and these guys are in the last few weeks of bringing this thing home that we are all feeling good about Vegas this year. But I think more importantly, almost is what Stefano was saying about our relationship with folks in the market. and really that we're looking at this as a long-term sort of investment. And I think after coming out of the first 2 years and sort of coming -- as I've seen these guys and interacted with the folks in Vegas, the sort of vibe around the race and where this thing can be longer term continues to be something where we see a considerable amount of opportunity. And I think that's probably the biggest point, the biggest takeaway over the first 3 years of having this race.

Our next question is from the line of Kutgun Maral with Evercore ISI.

Two, if I could, around sponsorship. So first, it seems like every other day, you're inking new and attractive deals. Looking at the year-to-date team payment trends, it seems like the full year budget is tracking exactly in line relative to the first 2 quarters of the year. So should we take this to mean that these new sponsorship and maybe licensing opportunities primarily fall in 2026? Or are there other offsets that we should be mindful of? And second, I was hoping to dig into licensing a little bit more specifically. Licensing is still a relatively small contributor to the business, but it seems like the team has really focused on expanding your efforts there. So maybe you could talk about the strategy and long-term opportunity you see ahead? And are you able to accelerate the momentum next year under the new Concorde?

Well, thanks. I mean I -- sorry, go ahead, Brian.

Yes, Stefano, I was just going to start on the sponsorship and then please add color. But yes, I mean, I think the team is feeling good about where we sit with sponsorship for '26, and a lot of these are long-term agreements, multiyear agreements that accrue to the future years. So as you sign them later in the year, they're going to have less of an impact, obviously, on the current guide.

Yes. Thanks, -- if I may add, I would say, yes, I think that you know that our strategy is not to talk a lot, but do the things. And the fact that we have shown with facts that every couple of months, we are there to be resilient in continuing the growth, this is our nature. It's our business. It's the beauty of what we have built up now as a great foundation. And the fact that not only new partners, but also partners that are part of us since many, many years are staying with us long term means we do have a credible platform. We have a credible strategy that is not diluting at all the value of them being with us, with other people, with our partners. It is getting stronger because we do believe in a cross-contamination of big partners that can enhance the value of our business and our sports. So we are really looking for the fact that we have now deals that is looking into the future. And what I'm saying is not only the dollars that count, is the awareness that we bring connectivity with new fans. The deal what we have done with LEGO, with Disney, with Hello Kitty is showing the fact that we want to have a community that will engage in long term with our platform. That's really our focus. Our focus is for sure to deliver the result that we promised to our shareholders, to the teams, to our stakeholders for sure, but we have a bigger thing ahead of us. We have a headwind that we want to keep running with it because we feel that the fundamentals are totally strong and totally valid for the next years ahead of us.

Our next question is from the line of Stephen Laszczyk with Goldman Sachs.

Maybe another one on the global media rights opportunity for F1. I'm just curious, as you look out across the globe, where you see the most opportunity up next in terms of increasing monetization? What contracts, what regions, what types of partners do you feel like you could bring in to increase the value either on a monetary basis or along the lines of the holistic partnership where that could be improved? And then maybe secondly, on hospitality, you called out some of the strength in hospitality in the quarter, Paddock Club at F1. Just curious if you could elaborate a little bit more on the drivers of that growth, whether it's strong pricing, whether you've seen more capacity come into the system this year on the back of some race promotion renewals or if most of that is still ahead of us given the renewal calendar when some of those contracts and an expansion of the Paddock Club kick in perhaps next year?

Thanks. I mean if I may, Derek, I will start. So we have other deals on which we are working on. So I would say stay tuned because there will be some other information going around the media deal in the future. As you know, and I don't want to undervalue what is the value for us to be a global sport. We have a global sport with global deals and the nature of the business is growing everywhere. So I think that we need to have a sort of mix situation around the world. Some of them will be linear in the future, some other will move in a different platform because what we need to do is to make sure that we see the relevancy and the opportunity monetizing as much as we can every market, but also checking what is the trend that every market is offering to us. So I think that this deal, as I said before, has had an effect of accelerating the fact that the long-term deal wants to be even be longer with the part that we have. So it's up to us to make sure that we need to do the right choices for the future, but the dynamic in this stream of revenue will be very important in the future. And even if some of the people will say that the shift between linear or pay TV versus digital will have a sort of drop in dollars optimization, I do believe that the nature of the business that is global will cover that for us in the future because the competition is very high in the different platform. Then with regard to the hospitality, I think that the reason why we feel confident in the future, this is another asset that despite a long-term deal with a lot of partners, some can say where is the gain that you can have with them. Actually, it's the other way around. because we know that the hospitality hand side is a limitating factor in terms of capacity for us. And the only way that we can have with the promoters to make sure that also this asset will be even stronger is to give them the chance to invest long term. Therefore, that's the strategy we're going to do in a lot of markets because we don't have to forget that we want to increase the quantity of availability, but we cannot lose the quality approach of what we are offering to our customers. And this is not negotiable. We have some examples this year, look what Hungary did in terms of renovation of the infrastructure, what they're going to still doing in the future. And this has an effect that, for example, you have seen what will happen in Austin in terms of new facilities that will be beneficial to our hospitality plan. So everything has an effect in a constructive way with everyone that is part of our ecosystem.

Yes. I would also just point you to Stefano's previous comments on that we've done -- we just recently announced a deal with renewal Televisa in Mexico. We previously announced the deal with Globo in Brazil. And as he said, there's a couple more deals on the table that are coming on the media rights side. So I think it is shaping up to sort of be an environment going forward here. We've got the right partners in the markets that are important to us, and that will continue to drive, I think, engagement and awareness of the sport.

Our next question is from the line of Joe Stauff with Susquehanna.

First question is on Vegas. I'm wondering I think in general, is it fair, number one, to assume most of the growth this year will be from the higher end? And if you can give us maybe a little bit more color on what you're seeing from the lower end? That's the first question. Second question is on MotoGP and race renewals. I guess since Liberty did for Moto, where our count is that there's been approximately 9 renewals. I think there -- I guess it's more of a clarification, another 6 to 7 to go that expire at the end of '26.

Joe, I think we got your second one, but we missed your first. So why don't we have Carlos take the second? And then if you could just repeat your first question after, please.

Yes, we have seen a lot of traction on a number of fronts since the announcement of Liberty Media. One of those has definitely been promoters where we see a lot of interest, of course, with a limited number of races. And we do see a lot of increases in the renewals. The total number was higher than that actually, but a number of those have already been renewed. We still have 8 events to be renewed for the 2027 season and 8 of which have already been renewed or announced in the past 12 months. And we continue to see a lot of interest from both new locations, but also interest in expanding the current events in Europe and outside with increases.

Understood. I'll repeat my first question. I apologize for the background noise. In Vegas, is it fair to assume most of the growth you'll see this year is coming largely from the higher end? And just wondering if you could comment on what demand looks like VA or the lower end of demand.

Thanks, Joe. I mean I can say 2 things that are relevant to the fact that this year, we do believe that everything is on track and what we wanted to have another successful season. First of all, there has been a big change on the pricing and how we position our tickets during the year. What has happened is factual in the past has been the last couple of weeks a drop in pricing. But what we have done this year is exactly the opposite. We were announcing a great different packages offer with the fact that we were explaining to everyone that has been that our strategy was different. Therefore, do not expect to see prices going down because this will not happen. It actually is actually not happening. The other thing is it's -- of course, the demand is very strong, much stronger in all the areas. We have also created packages for GA to allow even the community to be closer to the event. And this is something that is hand-on-hand with the fact that we also have a ticket -- daily ticket that has been in the package. And of course, this is -- we said since the first day coming in Vegas. we had to learn the lesson of being in a community that is new -- was new for F1. Therefore, I think that the incredible job that Emily and her team is doing is taking the experience that has been done in the first years in order to progress in all the dimensions of this business. That will be -- I don't want to say something that people will not believe me, a great success because Vegas is understanding the value of our business there, too. And this is very, very important also for them.

The next question is from the line of Peter Supino with Wolfe Research.

Shane thank you, and best of luck, you'll be missed. I wanted to ask about operating leverage generally and the Concorde agreement specifically. I think your last comment on the Concorde agreement in '26 is that it provides for modest operating leverage, assuming the business is on track. And I wonder if you could give a perspective on refresh that and then talk about the possibilities beyond 2026.

Yes, Stefano, I can start with that and feel free to add any color. But yes, with the new agreement, we would expect some modest leverage. We can't really say much more than that into 2026 and similar to what you've seen over the last few years. And then beyond that time, the percentage we would expect to be fixed and then you'd hope to see leverage in the underlying base business.

Yes. I mean, Brian, you are very clear. And I would say, for me, what we can add is really the fact that we can see a great stability in the sport in the future with regard to the governance to the fact that we are solid looking into the next 5 years in a condition where we really think that everything will be done, understanding that the team are part of the growth. And their financial strength is the strength of the business. And this is very, very important to recognize that. Therefore, on everything, I do believe that now we are finalizing the details. I want to thank not only the team, but also the President of FIA, Mohammed Ben Sulayem because we are sharing a great future together that is great because in this moment, we just need to make sure that all the conditions are stable to keep growing together.

The next question is from the line of Steven Cahall with Wells Fargo.

First, Stefano, I just wanted to ask you on competitive balance. We've seen some good racing this year between some of the top drivers and the top teams. I think we still have about 6 out of 10 teams that don't race for podiums most weekends. And I was wondering if there's anything that you might be implementing in the next couple of years that could improve that since it can tie to future growth in the value of the sport. And then, Derek, I think you said you expect some continued growth in the cost base this year as you invest into growth strategies. I was wondering if you could just expand on what those elements are and what the return on investment for some of those things look like?

Steven, I mean, with regard to the competitive balance, I would say we've never seen such in the last couple of years, a competition with a lot of teams that before we were not even able to score any points. I can nominate one team on top of the other is has, just to give you an example. And the gap between the cars and the driver is minimal. And therefore, I would say what we are living today is really something unique and which we are very proud of. And all the teams now due to the budget cap, due to the fact that the races are very interesting due to the fact that the business is so solid, are willing to invest and be even more stronger into the future. And this is very, very important. And we don't have to forget this is very relevant to make sure that without this kind of situation living today, Audi Honda Ford Cadillac would have come next year in our sport or even more with more investment. So as we always said, the sport is at the heart of our platform and never -- and no one has to doubt about it. You know that next year, we're going to have change in order to be cope with the fact that the technology applied to F1 has been always very relevant. We will have sustainable fuel at the center of the use of new powertrain. And it is normal to think that when there is such a big change of regulation, there could be a big difference at the beginning. But the regulation is done in a way that if this would happen, we know that there are mechanisms to make sure that the gaps can be reduced in a smaller time than normal. And therefore, this is a very important element to keep the dynamic of our sport at the center. And therefore, I think that no one -- and if you didn't have these dynamics, no one would have been interested to come in, in our sport. That's why, as I said, Steven, this is, for sure, one of the main focus that we need to keep to keep the center of our business, the sport and the racing itself.

Thank you, Stefano. And an exciting off the track news, Charlotte I was engaged yesterday. On the question of incremental costs, I think that was related to MotoGP. And I think we've made this comment in the past, and it's not dissimilar to sort of coming into a new business, trying to ultimately drive growth and drive revenue growth long term, but making upfront investments that will lead us to that point. I think as we've talked about previously, some of the investment in sort of expertise, personnel with the right expertise to drive the commercial side of the business, but also even revenue-generating assets, including things like the track, signage, investments into the video pass product, enhancements, all that sort of stuff is sort of ongoing and had already been ongoing prior to us closing the deal. But I'll let Dan give some more detail on that.

Thanks, Derek, and thanks, Stephen. I think Derek hit on a few of the really key areas of investment that we have started as early as last year, focused on, one, on the marketing side of the business in terms of new hires and also on the storytelling side, how do we reach new fans -- and not only new fans, but new fans based on the geographies that they are, we have to tailor that content to them. So that is taking significant time and investment in order to reach those people. Derek also mentioned what we've done to improve the look and feel of both the racetracks, the circuits and also The Paddock. So we've done some investment there. And the last thing I would say is we continue to innovate and iterate on our digital properties, specifically video pass to try to make sure that the digital offerings we have to consumers matches the innovation that we have on track.

The next question is from the line of David Joyce with Seaport Research.

Another MotoGP question. You mentioned that new races are coming in Brazil and Argentina, but you've also had a number of other renewals. So as you go through these renewals, do they allow for some rotating races given that you're already maxed out at 22 per year given your agreement with the teams? And does that somehow impact your media rights renewals cadence? If you could provide some color on that.

Sure. This is Derek. Look, I think right now, we are in a position where we have either some capacity in the sense that some races come up for renewal that we may -- if we choose to go to a different location, we have that capability to go do that. So the concept of rotating races right now is probably not in the near term. And I will then -- I guess, Carlos, if you want to comment on that further, go ahead.

Yes. Thank you, Derek. I would completely agree. We don't see sort of the short-term need to have rotating races. We think it's important. One of our main goals that's been sort of confirmed also in these first months of Liberty Media is one of our key priorities and targets is to invest in our events and turn our races into more and more of entertainment events globally. And a part of that is, of course, improving the events itself and where possible, also the event locations. We have Brazil coming in already in 5 months from now after more than 25 years and Buenos Aires, which will be another city where we race that. So all these events are a key focus for us in entering new markets. We do see that we still have capacity to bring in new events probably outside Europe, and there's no need to sort of rotate on current events in the short term. We don't see this impacting our media rights at all. We continue to have 22 events. All 22 events have sprints, and that's been a part of the investment of making these events more of entertainment events, having more action, more notorious action on track around the whole weekend. And that's something that we've also leveraged together with other assets to be able to increase on our media audiences. So we don't see that the race mix will affect our media rights.

The whole concept here is to improve sort of the quality of the product across the board, including where we have races, who our local promoter partners are that help us drive promotion of the sport and all that, which will ultimately lead to deeper and broader engagement, which in theory will drive media coverage and media rights.

Next question is from the line of Ryan Gravett with UBS.

Just in terms of the upcoming split-off, does anything change in terms of your capital allocation plans or priorities at Formula One Group? And along those lines, any expected changes to operations or the commercial relationship between Quint and Formula One after the split occurs?

I'll take that. So that would be probably no on both, and we'll leave it there.

Okay. Fair. Just maybe just a follow-up on MotoGP then in terms of the hospitality offering for that business. I was wondering if you could talk to the opportunity there and when some of the benefits of the integration could start to materialize?

Yes. I think we do see significant opportunity on the hospitality side of Moto. I don't know if any of you guys have been to a motor race, but it is a pretty thrilling event to attend, I think where we do see opportunity is sort of the experience at the track that goes beyond what you're watching and what you're feeling. And so just like the F1, having that opportunity to upgrade elements of that hospitality product is something our team is -- Dan and his team are very focused on and actually working with Quint on that particular dynamic. So Dan, if you want to give a little bit more color, feel free.

Yes. Thanks, Derek. I think what he said is correct. I think we do have a lot of -- we've made some really good improvements at MotoGP in the hospitality offering from both a service and an experience standpoint. We now have to execute on a plan that is to reach both our existing consumers to get them more involved throughout the weekend and also, though, to find a new set of fan base, a new group of fans to purchase hospitality, particularly at the races where we do well but have room for capacity room. So what I would say is working with Quint, what we're trying to do is not only look at pricing, but look at the ladder, making sure that we get a good product ladder so that we can offer people things at different price points so we can upsell on experiences because what MotoGP does have is we are a hugely accessible sport. So we have the ability to package in really great experiences with our base hospitality program that I think is unique in the sports industry. So we see a good upside here. It's just going to take some execution, and we're looking forward to collaborating with Quint on that.

Our last question will be coming from the line of Matthew Harrigan with Benchmark Company.

Actually, first of all, thanks to Shane for all the classic Investor Day schedules, which I hope are going to be available on an archival basis because they were really, really great. Obviously, other people at Liberty were involved, too. I think Shane was a main architect. I think my questions are partially answered, but are you seeing all the teams be able to adequately cope with the new 26 engine regs? And do you see anything commercial and tangible coming out of the Saudi Aramco Synfuels venture? I know you touched on those questions to some extent, but if you could amplify a little more, that would be great.

I definitely think so. I definitely think so. I think the fact that on The Paddock, everyone believes that it's faster than the other means that there are so many variables that everyone believe to have the secret recipe of being more competitive. I do believe that, of course, the level of technology that is needed in terms of knowledge is not only on the power unit. We forget that it's a new car. We forget that it's a total different dynamic on how you have to drive your car is a dynamic aerodynamics. It's a different way to manage the tires. It's a different way to manage the energy. It's a different way for the drivers to drive with the new regulation. So everyone is really focused on. And the beauty of that, that we have still teams that are fighting for points that are -- will be converted in dollars at the end of this season for the championship. So there are still some developing during these -- the last couple of races because no one wants to give up. So it's all fascinating. I think that really all the elements of adventure are there and which we should be very, very proud.

Great. Thank you, Stefano. I think with that, we're going to wrap it up. Again, thank you, Shane, for all of your great work over the years. We look forward to seeing where you go next.

Thank you Shane, from the F1 side. altogether, one family.

Thanks, Stefano. With that, we'll wrap it up. And again, just finally, Investor Day on the 20th, followed by the F1 Business Summit in Vegas for those of you who can make it. See you there.

This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation. Have a wonderful day.

Welcome to the Liberty Media Corporation's 2025 Second Quarter Earnings Call. [Operator Instructions] As a reminder, this conference will be recorded on August 7. I would now like to turn the call over to your host, Shane Kleinstein, Senior Vice President, Investor Relations. Please go ahead.

Thank you, and good morning. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in 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 such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Media, including adjusted OIBDA. The required definition and reconciliation for Liberty Media Schedule 1 can be found at the end of the earnings press release issued today, which is available on our website. Speaking on the call today, we have Liberty President and CEO, Derek Chang; Liberty Chief Accounting and Principal Financial Officer, Brian Wendling; Formula One President and CEO, Stefano Domenicali; and MotoGP CEO, Carmelo Ezpeleta. Other members of management will be available to join for Q&A. And with that, I'll turn the call over to Derek.

Thank you, Shane. Good morning, everyone. It was an active second quarter at Liberty, which saw us progressing the initiatives we laid out to start the year. Regarding our planned split-off of Liberty Live, we filed the initial S-4 at the end of July and are now going through the customary review process. Chad Hollingsworth will be the CEO of Liberty Live Holdings once the split-off occurs. Chad is a Senior Vice President at Liberty, has been our Director of Live Nation since 2020, and is an agile person to oversee our investment. We expect to complete the split-off in the fourth quarter. Our next priority is supporting the growth and momentum at F1. The financial results were outstanding this quarter alongside a flurry of new sponsors announced, promoter partners extended, and media rights agreements signed. Stefano will provide greater detail shortly. And finally, we completed our acquisition of MotoGP on July 3. We are now beginning fulsome work in helping management set their strategic direction to enhance the company's growth. Fortunately, the sport and ecosystem are both in a strong position, providing the foundation to build on for future success. While it's early, I'd like to outline what we see as near- and medium-term priorities for MotoGP. Starting with near-term objectives. First, we want to accelerate the build-out of certain commercial functions, which was already in progress prior to the close. This includes sponsorship and marketing teams in areas like sales, account management, research, public relations, and social media strategy. Second, we will lean into brand positioning and build off the new MotoGP brand campaign that launched last November. Efforts will include developing a more robust fan insights platform, tracking brand awareness and engagement to better inform commercial propositions for new and existing partners. The team has already started new content initiatives with specific focus on the U.S. and U.K. markets. Third, we have begun collaborating with F1 to explore areas where we can accelerate business initiatives and share learnings. Some of these benefits will take time to materialize and be realized over the longer term. With respect to medium-term priorities, first, we intend to enhance the Grand Prix experience and turn each weekend into marquee events, very similar to the mandate in the early days of F1. This includes improving the hospitality offering and augmenting fan experiences on site as well as ample opportunities to deepen our partnership with Quint. Second, we will expand the sports global presence and broaden its appeal and reach. The MotoGP team has a clear focus on capturing new fans and growing outside the motorcycle racing world while maintaining its core traditional fans. They are already making progress in optimizing new race locations, including the recent announcement for a race in Buenos Aires in 2027, which strategically locates a track in an urban center as well as a return to Brazil next year after a 2-decade absence. We plan to target the U.S. as a key growth market given its limited presence today. Third, we need to scale sponsorship partners as we know this has massive potential given the current heavy reliance on endemic names. Furthermore, there is clear low-hanging fruit like unsold title sponsorships or vacant trackside advertising. However, we are also mindful that sponsorship sales cycles can be long, and the team will manage for the quality of partners with clear brand alignment. In aggregate, while it is early days and will take time, we are very optimistic about the growth potential for MotoGP. One perspective on the potential opportunity is in reference to F1 on several engagement and financial metrics. For example, F1's audience in both race attendance and cumulative TV viewership is roughly double that of MotoGP, yet F1 monetizes its primary revenue streams at roughly 5 to 10x those with sponsorship and hospitality at the high end of that range. These monetization opportunities, again, will take time, but we believe there is significant potential to scale and grow the business. We'll look forward to updating you on our progress as these initiatives develop. Now I'd like to welcome Carmelo to make some remarks on MotoGP. I have gotten to know Carmelo and his team over the past few months and have tremendous respect for the sport that he has built. His passion is second to none, and I will now turn it over to Carmelo so you can hear it from him directly.

Good morning, and thank you, Derek. We are very excited that the transaction has closed, and we can now begin our partnership with Liberty Media. Liberty's track record with Formula One is well known, and the acquisition has already led to increased interest in our ecosystem. We look forward to benefit from Liberty's expertise as we continue to accelerate the sport's growth and expand its reach to a wider audience, growing value for our funds, teams, commercial partners and investors. The 2025 season has been very strong. We have held 12 races through the first half of the season and have seen driving competition and great engagement from our fans. We have had 5 riders and 4 teams win and 11 riders across 8 teams on the podium, including our spring races. The concession system in our sport is designed to drive more competition across the grid, giving lower ranking manufacturers more testing opportunities to improve their technology quicker. This new system, which was put in place last year, is clearly having a positive effect, which we expect to continue. Through the first half of the season, attendance is up 6% on a like-for- like race basis. Notably, Le Mans set the highest attendance ever from the MotoGP championship since records began in 1995 for the third year in a row. Looking at recent races, the Italian Grand Prix saw attendance up to 6% and set a new circuit attendance record and the Dutch and German Grand Prix achieved record attendance at their circuits for the second consecutive year. From a viewership perspective, we have 38.2 million average TV viewers through the first 12 races of the season. and engagement has been also very strong across digital channels, including our direct-to-consumer product, VideoPass. Social media followers reached almost 60 million, growing 6% year-over-year. Our new brand identity launched at the end of last year and our first ever season launch event that we hosted in February are resonating with fans as we continue to showcase MotoGP as a leading global media and entertainment brand. Our management team is looking forward to getting to know our investors and analysts audience over the coming quarters and to sharing our incredible sport with all of you. Now I would like to turn the call back to Derek.

Thanks, Carmelo. We are thrilled to have you and your team on board and are looking forward to further showcasing the MotoGP asset in due course. Now I'll turn it over to Brian for more on Liberty's financial results.

Thank you, Derek, and good morning, everyone. At quarter end, Formula One Group had attributed cash and liquid investments of $3.1 billion, which includes $1.8 billion of cash at Formula One and $70 million of cash at Quint. Total Formula One Group attributed principal amount of debt was $2.9 billion at quarter end, which includes $2.4 billion of debt at the OpCo level, leaving $525 million at the corporate level. F1's $500 million revolver is undrawn. The MotoGP acquisition closed on July 3. Liberty acquired 84% of MotoGP with management retaining a 16% ownership stake. Pro forma for the transaction, F1 OpCo had approximately $380 million of cash and $3.4 billion of debt, bringing pro forma leverage to 3.3x compared to 0.7x reported as of 6/30. Formula One Group Corporate had pro forma cash of approximately $480 million and no change to the debt balance. Shortly following transaction close, we launched a refinancing at MotoGP that is expected to close later in August. We priced approximately $230 million of new Term Loan A denominated in U.S. dollars, a new EUR 800 million Term Loan B, and a new EUR 100 million multicurrency revolver with future reductions in margin expected as the business delevers. This new capital structure will result in significantly reduced annual interest expense, extended maturities and a currency mix that better reflects the euro and U.S. dollar exposure of the business. Using June 30 balances, exchange rates as of that date and pro forma for the refinancing transactions as 5.2x. In the near term, we expected to delever both at Formula One and MotoGP. Our goal is to delever to the 3 to 4x range of the MotoGP business by the end of 2026. Turning to the F1 business. I'll make some brief comments on the second quarter, but we'll focus primarily on year-to-date comparisons, which better reflect the state of the business given variability in quarterly race numbers and mix. A reminder that every quarter in 2025 will have a different race count and mix, which will impact quarterly comparisons. Most of the variability in Q2 year- over-year results is due to one additional race held in the mix of events in the second quarter compared to the prior year period. Q2 '25 held 9 races compared to 8 races in '24, with Bahrain and Saudi Arabia occurring in the current period compared to China in the prior year period. Year-to-date, though, through the second quarter, F1 had the same race count and mix year-over-year. The business is performing incredibly well with revenue up 14% and adjusted OIBDA up 21%. Revenue grew across all revenue streams with sponsorship, race promotion and media rights continuing to benefit from new partners and underlying growth in the existing contracts. Media rights also continued to see strong F1 TV growth and recognized onetime revenue associated with the Apple F1 movie in the second quarter. Other revenue increased primarily driven by higher freight, hospitality and licensing revenue, including the success of the new LEGO partnership. Adjusted OIBDA increased on a year-to-date basis with revenue growth outpacing increased expenses. Other costs of F1 revenue increased primarily due to higher freight costs from the mix of routes flown as well as higher hospitality costs, primarily driven by increased Paddock Club attendance and higher commissions and partner servicing costs, including increased costs to service new sponsorship agreements. SG&A expense increased year-to-date, primarily due to higher marketing and personnel expenses. Marketing expense was impacted by the O2 launch event that occurred during the first quarter and team payments increased due to the pro rata recognition of expected higher team payments for the full year. Team payments as a percentage of pre-team share adjusted OIBDA were 58.4% year-to-date compared to 61.9% in the prior year period. A quick reminder that team payments should be analyzed on a full year basis due to quarterly fluctuations in team payments as a percent of adjusted OIBDA. Reminder that team payments as a percent of pre-team share adjusted OIBDA were 61.5% for full year '24, and we continue to expect to see leverage against the full year '24 percentage for the full year of 2025. Turning briefly to MotoGP's results. A reminder that since the transaction closed on July 3, MotoGP results will not be consolidated until the third quarter. All financial information for the business to date has been in Spanish GAAP, and we expect various U.S. GAAP adjustments, including the removal of straight-line revenue and cost recognition for multi-year contracts. Under U.S. GAAP, we expect growth rates for primary revenue streams with multi-year contracts to more closely approximate the annual escalators included in the contracts, obviously, absent the impact of any significant renewals, which will differ from the relatively flat Spanish GAAP representation included in our financial disclosure to date. We expect to provide results for the full year 2024 in U.S. GAAP at year-end as part of our normal reporting. More information can be found in the information pack on MotoGP that was posted to our website at the time the acquisition closed and a table summarizing 6/30 year-to-date results in Spanish GAAP can be found in a trending schedule that will be posted to our website after the 10-Q is filed. MotoGP held 10 races in the 6-month period ended 6/30/25 compared to 8 races in the prior year period. Spanish GAAP revenue and EBITDA were EUR 220 million and EUR 75 million, respectively, for the 6 months ended 6/30/25. Year-over-year comparisons are impacted by the mix of races as flyaway races in general carry a higher cost per race. For the full year 2025, we expect a normalized race calendar unlike 2024, which was impacted by several race cancellations. Note that the second half of the year contains a higher mix of races with greater profitability. The majority of MotoGP's revenue and costs are euro-denominated. Going forward, we intend to provide both U.S. dollar and euro-denominated growth rates to better portray underlying trends in the business. Lastly, looking briefly at the Corporate and Other results year-to-date. Revenue was $198 million, which includes Quint results and approximately $12 million of rental income related to the Las Vegas Grand Prix Plaza. Corporate and other adjusted OIBDA loss was $4 million, includes Grand Prix Plaza rental income, Quint results and corporate expenses. As a reminder, Quint's business is seasonal with the largest and most profitable events taking place in Q2 and Q4. Turning to the Liberty Live Group. There's attributed cash of $308 million and $400 million of undrawn margin loan capacity related to our Live Nation margin loan. As of August 6, the value of the Live Nation stock held at Liberty Live Group was $10.4 billion. We have $1.15 billion in principal amount of debt against these holdings. Liberty and F1 are in compliance with our debt covenants at quarter end. And with that, I'll turn it over to Stefano to discuss Formula One in more detail.

Thanks, Brian. It continues to be an incredible season as we head into a well-deserved summer break for our F1 community. We've witnessed a thrilling competition and on track action that shows everything Formula One represents. Several drivers across the grid have stood on the podium this season, demonstrating the depth of talent across the grid. What is equally impressive is our competitive mid-field battles. Every single team down to 10th place has scored meaningful points this season. I'd like to take a moment to congratulate Nico Hülkenberg on achieving his first podium at Silverstone, a moment that perfectly captured the unpredictability and human stories that make F1 so captivating. Our fans are showing up in larger numbers than ever with impressive engagement across metrics. Attendance has been solid with nearly all events operating at capacity. 12 of the past 14 races sold out and 6 races set new attendance records, including Silverstone, welcoming close to 500,000 fans over the 4-day weekend. At the Paddock Club, we've sold 28,000 tickets season to date through Hungary. Early forecast based on advanced partner requests are already indicating strong demand for 2026. Looking at TV viewership for the '25 season, nearly every race is showing healthy growth in year-over-year live viewership across F1 top 15 markets. Key large European markets have seen robust growth, including Germany, the U.K. and France as well as our non-European markets like the U.S., Australia, Canada, and Brazil. In the U.S., in particular, live viewership is up 7% season to date compared to last year, and ESPN has seen 7 races set viewership records for their events. Our additional race content is benefiting total viewership with live audiences for the Sprint race in Miami up to 25% year-over-year, attracting the largest U.S. audience for Sprint race since the format was introduced in 2021. Perhaps even more impressive is our traction on digital and social platform. Viewership of F1 highlights on our YouTube channel grew 30% compared to last year, and over half of this audience is under 35. Our social media followers reached 106 million, growing over 20% year-over-year, primarily driven by TikTok, Instagram, and YouTube. F1 remained the fastest-growing major sport property on social platform. Driven by both an exciting season on track and cultural buzz around the F1 movie, F1 drew its largest reach ever on social media in the second quarter with over 20 billion total social impressions, growing over 100% compared to the second quarter of the last year. In June, the F1 movie was released to the world. The movie was the largest global opening weekend ever for a Brad Pitt film and was shown on more than 44,000 screens across 80 markets. In its first 5 weeks, the F1 movie saw global box office sales over $500 million, becoming the highest grossing Apple film to date. The film will be released on Apple TV later this year and will continue to strengthen fan engagement with our sport. It's worth emphasizing the scale of our total global fan base. As Nielsen reported earlier this year, the F1 fan base reached a record number of 826 million in 2024, 43% of these fans are under 35 and 42% of our fans are female, the highest share in F1 history for both segments. Additionally, we recently publicided results from a global fan survey conducted by Motorsport Network. 27% of the survey respondents were under 24 years old, and half of these were female. 75% of the fan who became interested in the sport in the last year were female. Importantly, for our commercial business, 1 in 3 fans are more likely to consider a purchase if it is from an F1 partner. We will continue to cultivate this fan base in creative ways to interact with Formula One race on non-race weekends alike. Growth in our fan engagement is translated to strong interest from commercial partners, generating continued financial strength. In our race promotion business, we renewed the Austrian Grand Prix through 2041 and the Canadian Grand Prix through 2035, reflecting the confidence our partners have in F1 value and growth trajectory. We also announced our '26 calendar. We are excited to welcome Madrid to the F1 family as a new race beginning next year, 2026 marks the final lap for Zandvoort, and we are tremendously grateful for all our promoter has done to delight fans since their return to the calendar in 2021. We look forward to welcoming one of the numerous interested nations and city to this slot in 2027 and beyond. The '26 calendar also advanced our continued improvement in the geographic flows of races with the Canadian Grand Prix now following Miami, driving expected freight efficiency and consolidating our European races into one unbroken run over the summer months. For Las Vegas Grand Prix, we are very happy with the progress made so far this year. Our ticket sales are trending ahead of last year, driven by higher sell-through rates. We have agreed to contract extension with all our founding partners and are working to secure long-term procurement contracts to reduce future build-out costs. We and our partners see the incredible value of this race as we continue to build it for long-term success. Turning into media rights. We are finalizing contract in several regions, including Japan, Australia, Pan-Asia, Mexico, and Latin America. We continue to make progress on our U.S. media rights agreement and are confident in our attractive position in the U.S. market. Nielsen reported the American fan base grew over 10% to 52 million fans in 2024, and the U.S. remain our largest market on social. We continue to focus on securing the ideal partner to support our broader commercial strategy for continued growth in the U.S. market. In Brazil, we have secured a return to Globo TV for 2026, who previously held our right for 40 years. This platform has the largest share of the total viewer in Brazil and commands over 50% of the free-to-air broadcasting market. Additionally, alongside our race promotion renewal in Canada, we also contracted a long-term extension to Bell Media's media rights deal. F1 TV continues to outperform our expectations, with especially robust growth in the U.S., UAE, Canada, Brazil, and Sweden and with the new premium tier offering seeing strong uptake. Our sponsorship was entering 2025 with high visibility into our pipeline, and I'm very pleased with the significant new partnership activity we have announced. MSC Cruises extended as our global partner through 2030, and we welcome Pepsi as an official partner, bringing their powerful portfolio, including Doritos, Gatorade, and Sting Energy into the F1 ecosystem. With this incredible success benefiting our 2025 results, our team is now focusing attention on our pipeline for 2026 and beyond. I'm confident in our progress on several high-value renewals and new partnerships that will drive continued growth. On our other revenue stream, looking first at the Paddock Club, we continue innovating our premium hospitality product, including leveraging key learnings from Las Vegas to diversify and enhance this experience. We were excited to announce House 44, a partnership with Lewis Hamilton, Soho House and F1 that we launched at Sixth Circuit this year, beginning in Silverstone. We believe there are additional innovative products to come. License remain a continued areas of focus and growth. F1's new partnership with Disney is the latest example of our effort towards F1's always-on strategy, bringing F1 into the lives and homes of our Fast Beyond 24 races a year. We will deliver a 360-degree licensing program with Mickey and friends across consumer product categories, retail, track site activation and experience and are thrilled to launch this partnership in 2026. Our LEGO partnership also continued to show strong growth and generate buzz on social. LEGO marketing activation hit over 21 billion in reach this year. Across our consumer product business, our partners sold 12 million units of product in Q1. 2026, we will see a number of new licensed products launching across soft and hard lights. In experiential licensing, F1 Arcade globally welcomed over 200,000 guests through its door in the second quarter alone. The third year venue in Philadelphia opened at the end of May and Denver, Las Vegas, and Chicago will open in the fourth quarter. We are also pleased to report that the F1 exhibition has now surpassed 1 million tickets sold. Turning to Grand Prix Plaza. The new activation launched to the public in May capitalized on the F1 brand to promote the site as a primary destination in Las Vegas. The venue has welcomed visitors from 72 different countries since opening. We believe our karting operation is now the second highest grossing track in the country, exceeding 1,000 riders a day on the weekends with strong and growing revenue per person. It is, however, still early days and the overall revenue contribution is modest. And finally, we hope many of you saw our F1 75th motion activation, marking 75 years of F1 through a vintage-inspired premium pop-up at Luxury Retail Selfridges in London. Originally planned as a 2-week activation, it was extended due to exceptional demand. Finally, on sustainability, in July, we published our 2025 update, highlighting our continued commitment to sustainable growth and progress to date. We achieved a 26% reduction in emissions in 2024 versus our 2018 baseline, ahead of internal expectations. This achievement is particularly noteworthy against the backdrop of more races and bigger events, demonstrating that we can grow sustainably while expanding our global footprint. As we look ahead, Formula One's momentum across every dimension of our business position as well for the continued growth. The foundation we are building today will drive long-term value creation for all our partners and stakeholders. Avanti Tutta, full speed ahead. And now I will turn the call back over to Derek. Ciao. Thank you.

Thank you, Stefano, and thank you, Brian. Before going to Q&A, I want to remind you to save the date for this year's Liberty Media Investor Day. We will be hosting our Investor Day alongside the inaugural F1 Business Summit on Thursday, November 20, in Las Vegas in advance of this year's Grand Prix. We will have limited in-person attendance, but the Investor Day will be webcast. Stay tuned for more details. We appreciate your continued interest in Liberty Media. And now we would like to take questions. Operator?

[Operator Instructions] Our first question comes from David Karnovsky with JPMorgan.

For Derek or Stefano, obviously, there's been a lot in the press on the U.S. media rights. Maybe you can update us on where things stand with the process. How are you thinking about priorities in terms of reach versus payment? And what role might -- F1 TV might play?

Derek, if I may, I can start, if it's okay for you.

Yes, absolutely.

Thanks, David, for the question. I think that, as you said, I will start from the last of your remarks. F1 TV is and has to be and it will be part of the package of what we are negotiating now into the future. This is absolutely relevant because as you have seen, David, the numbers are growing. There is an incredible opportunity for us to stay connected with our, let's say, fan base that is maturing and is growing in terms of attention in terms of knowledge. And of course, the discussion we are having are in a good place because we believe that we are, as I said, very, very good opportunity to keep the momentum that it is very strong in U.S. And just I think yesterday, there will be the indication that this year, we were over 1 million follower on the races in U.S. that is really great. So we are progressing our negotiations. Of course, there are weeks in front of us. We have not a great rush to finalize everything because we want to make sure that, as you said, we find the right solutions. One thing that I definitely can add is we are looking for, I would say, mid-term, not long-term, mid-term agreement because we believe that we are still in a position that our growth will have the chance even further to be negotiated better in the future. But everything is looking good. And the balance is definitely important, as you said, between reach and awareness. But we believe that everything is progressing according to our plan.

Thanks, Stefano. And I would just add that as we continue to look at the U.S. market, we are very pleased with the progress we've made over the last few years with the addition of the races that we have here and sort of the engagement that we're seeing and look forward and the fact that the business has been built in the U.S. and what that's doing to help promote and foster the sort of robust discussions that we're having and look forward to having this next deal take us into the future.

Okay. And then maybe just one on the Vegas Grand Prix, it would be great to hear a bit more about the on sale process for the year, how the strategy of starting at a lower price point is paying out. And does that plus what you could do on expense management, I don't know, inform any view on the ultimate kind of contribution of the race to the financials for the year?

Well, I can definitely say that Vegas is progressing very, very good according to our plan. If I go specific to your question, it's definitely what we have done differently to last -- from the previous year that has been the first year of that experience, we definitely start with the price that is pretty clear with no drop down. And this has been very, very clear and the package that we have sold is following this direction. And we definitely believe that, of course, from this year onwards, the contribution of Vegas Grand Prix [indiscernible] will be definitely much more important than what has been so far in the first 2 years.

Yes. And I would just add a huge shout out to Stefano and the whole F1 team, the LVGP team because the amount of progress they've made this year has been pretty impressive as we've -- at the beginning of the year, talked about what needed to get done there, both on the expense side as well as the revenue side. And as Stefano talked about in his comments earlier, I think we've got the agreements in place with our partners in Las Vegas. I was just out there a couple of weeks ago. And I think the enthusiasm for where the race stands and where we're going with this thing is pretty palpable, and I think puts us in really good shape going forward.

Our next question is from Bryan Kraft with Deutsche Bank.

Brian, I was wondering if you could help us to quantify the contribution from the F1 movie to primary revenue so that we don't all end up overestimating the revenue that's going to be recurring? And then secondly, how will the MotoGP management team 16% ownership be accounted for, both in terms of the income statement and the share count?

Yes. So on the F1 movie, think of it as a mid-teens number for the quarter that's one-time in nature on revenue. And then I'll answer your MotoGP question, but then I would kick it over to Stefano after that to really talk a bit more about the benefit of the F1 movie to the overall ecosystem. But quickly on MotoGP, the 16% will be accounted for as a non-controlling interest. So you'll see a big amount on our balance sheet above equity. And then we'll pick up 84% of the earnings of the business through the P&L. The other 16% will be allocated to non-controlling interest. Stefano, do you want to comment on F1, the movie?

Yes, absolutely. I mean thanks, Brian. And Brian, I would say the effect of the movie is not only, of course, about the dollars and the economical impact, but the sport will have an incredible opportunity to grow its awareness and to generate, I would say, the circular economy around that because it's a new product that has been incredibly strong. And actually, why we were, in a way, quite positive about the impact in the U.S. was fascinating to see the impact on the more mature markets. So these things will generate definitely interest, will definitely bring money to the ecosystem, to the teams, to the F1 stakeholders. So that's really what we can see happening. If you think that after just a couple of weeks, the movie itself brought more than $500 million at the box office is something that keeps you the amount of interest that is generated. We don't have to forget that this movie will be out on Apple platform later on at the end of the year. So that momentum will have a longer effect that will definitely create interest that can be monetized later on into the all the system that is around Formula One.

Our next question comes from Stephen Laszczyk with Goldman Sachs.

One on MotoGP and one on F1 from me. Maybe first on Moto, I think it's clear that you see a lot of opportunity to improve the reach and monetization of the sport. I think it's also pretty clear that you expect a period of investment and repositioning to play out over the next couple of years. So I would just be curious if there's maybe any early frameworks or thinking around how investors should expect the pace of investment to be matched against the pace of execution against the revenue opportunity and really what that means for the trajectory of profitability for the business over the next few years? Any thoughts or frameworks there, I think, would be helpful. And then a quick one just on hospitality at F1. You called out in the press release and I think in the prepared remarks, the strength you're seeing there. Is there any way to maybe elaborate more on the drivers and magnitude of that growth? And if we were to look at comparable GPs year-over-year in the quarter, what types of growth we're seeing from Paddock and hospitality?

Okay. This is Derek. Let me just take this to start. I think as it relates to sort of MotoGP, you're absolutely right. We do see a lot of opportunity here. I think that -- and I'll let the team sort of opine here, but no one actually knows who these drivers are and few people know about sport. And I think that's -- fundamentally, we have a great sport, and it's a great place for us to start. So we do see opportunity, I think, from an investment standpoint in the MotoGP. We, like F1, will plan to invest. I don't think it's going to be something that's outsized per se, but we do want to accelerate growth there and see the opportunities to do so. I'll let Carlos Ezpeleta from MotoGP speak a little bit more in detail on that, and we come back to the hospitality question.

Thank you, Derek. Yes, we see growth basically divided into two areas. The first one being how to monetize our current fan base or our current business better. And the second one and especially one where Liberty can be very helpful, evolves around an increased fan base around the world. And whether that is through content, through storytelling, or through our strategically growing different markets, all of that evolves around growing our fan base. I do have to say that we have invested -- that investment already started before the operation of Liberty Media and us hiring key roles around commercial and marketing and investing in sort of fan insights and research roles. And all of that has already started to lead to potential increases in the business. But we do see that the biggest driver of growth will be increasing our fan base globally. As Derek was saying, we do have a lot of opportunity in showcasing what the sport is and who the riders are, and we see that, that will be the biggest driver of growth.

Great. Thanks, Carlos. I think as we come back to the question on hospitality, Stefano, if you want to give your thoughts on that, that would be helpful.

Absolutely. Thanks, Darek. Thanks, Stephen. I mean I think, first of all, I just can confirm may reiterate the culture that demand is very strong. What we are doing is making sure that we have different products that can contribute to what are the needs of our partners and fans. Of course, the fact that we are now having incredible partners that are able to activate their investment through hospitality packages is giving us the chance to highlight the need of keeping the focus on quality and also try to capture any other opportunity around the world where we can extend our hospitality to follow the demand that we have. That is very important. And this is what we are doing, where we are negotiating or we are discussing with the promoter. When there is -- we can see that there is enough demand to grow the quantity, keeping the quality at the stand that we want, definitely this is what we are doing. And I think it's really what is important to say that we are working since a couple of years and not stopping for sure, on making sure that our hospitality program are entertainment -- pure entertainment that have a unique city that we can offer to our fans that are coming to the track. This is really something that has been recognized unique from other disciplines, from other world of entertainment, and that's where we are focusing. So quantity for sure, but quality [indiscernible] the offer that we can provide to our fans.

Yes. I mean a great example of that is this past weekend's race in Budapest, where they just unveiled a whole new Paddock Club facility, which is larger and certainly much more upgraded than previously, which speaks to both quantity and quality that Stefano just referenced.

Our next question comes from Ben Swinburne with Morgan Stanley.

One on MotoGP, and then I want to ask Stefano about sponsorship. I think the last disclosure we had from the deal deck, Brian or Derek was back in, I think, 2023. I think it was about EUR 480 million. I'm just curious if you could talk about how the business has performed just from a top line perspective as you get through '24 and expectations for '25. I think you have more races this year than you were running -- than Moto was running in those couple of years, just to help us think about growth rates. And then, Stefano, in your prepared remarks, you talked about the sponsorship team focusing on '26. You sounded excited about the opportunities. I'm just wondering if you could spend a little more time on how you're feeling about the pipeline into next year because this year is a great year for growth in that revenue line. I'm just wondering if you feel like you can keep the growth going in '26 at a healthy clip given what your team is seeing right now.

I will start and have Brian take the first question, then we'll pass it back to Stefano.

Yes, Ben, I would point you to the info deck that was put on our website on the day the deal closed. But you can see in there and a reminder, these are not our numbers. They're in Spanish GAAP. They're not U.S. GAAP, they're in euros. There's a whole bunch of disclaimers I put on them, and those are all in the deck as well. So read those carefully. But with that said, 2023 -- in 2022, you had EUR 475 million. In 2023, you had 46 -- I'm sorry, yes, in 2023, you had EUR 486 million. In 2024, you had EUR 462 million. Same race count across each of those, but there were cancellations that impacted 2024 where your expectations were higher, but you had cancellations that two of which got replaced with lower fee races. You'll be able to see the OIBDA numbers in there as well. There were some bad debt amounts that were kind of onetime in nature in 2024. You'll see an information pack or a trending schedule filed on our site later today, where you can see the year-to-date numbers. And what I would say on that is when we think about where we sit for the 6 months ended 6/30/25 versus 6/30/24. Keep in mind, there's always a different mix of races. There were 10 races in '25, 2 additional flyaways, I believe, versus 8 races in the prior year. Those flyaways tend to have a higher cost. Certain -- the flyways in general tend to have a higher cost and then the economics obviously depend by each race, but we would expect to see a higher mix of profitability for the races that remain in the back half of the year.

And then I'll turn it back over to Stefano for the question on sponsors.

Yes. Thanks, Derek. Ben, I think that you are absolutely right. I think that what is relevant to say is that the momentum that we are living, we are pretty convinced that we'll keep being strong. We were talking just before about the movie. The movie will capture another dimension of brand that will be attracted by what we can offer to them. Of course, being in this moment where, as I said, the pipeline seems to be very, very interesting, we need to make sure we keep the balance. And we will keep doing what we've just started in order to keep the quality also here and to keep progressing with the fact that we can have partners that we have -- we can give them, I would say, less visibility with a higher number of money -- with higher money because we are differentiating the different categories. We [indiscernible] Barilla, Allwyn, LEGO, and Pepsi, and LVMH and this has created an ecosystem that is generating more interest in other categories that we are now to evaluate in the right way. What I can see even more important is that we have, for example, one category that is betting, as you know, that is an opportunity that we need to take in the right way. We have a lot of discussion. We need to make the right call because, as you know, in [indiscernible] market, this is a big opportunity now that there are legislation limitations we need to consider. And then another area that I said at the beginning will be very interesting to develop is the consumer area that has never been important in the business of F1. So that's another area of possible development that we are focusing in order to bring home good and important deals in the future. That is not only '26, but in the next year after.

Our next question comes from Kutgun Maral with Evercore ISI.

I wanted to ask about the outlook for F1 race promotion and maybe just excluding Vegas. I know this year is relatively light, but it seems like you have a number of deals or extensions in 2026 that could really help accelerate growth over there, particularly thinking about Melbourne. So I wanted to see if you could expand on the opportunity you see over there.

Yes, Stefano, I can...

Sorry, sorry?

Go ahead. Go ahead.

Okay. Thank you, Derek. I would say, well, definitely, the positive trend that we see is definitely there because in all the possible opportunities that we have, we have more demand and/or we have the chance to, let's say, work together better with our partners in order to make sure that, as Derek was mentioning before, Hungary has proved to not only Europe, but all the markets that if a country believes in our sport, there is room for investment, room for the right investment for fans, and also the right fees that needs to be recognized by the fact that F1 is the business cup for a country and for a culture. Therefore, there are opportunity in front of us. But the other good thing is that for the deals that we have extended with a quite significant term, it's benefiting the fact that there is a robust growth in the year to come in order to keep the financial opening to the race as minimum as possible. But definitely, for the windows that we have in front of us, there are a huge opportunity because, as you know, we don't want to move forward in terms of number of races even if the request is higher than what we can offer.

The conversations that Stefano and his team have with prospective promoters out there, they are -- it's a pretty healthy group of folks that are always coming in to have discussions. We clearly have certain limitations as it relates to calendar. But I think as we continue to scope it out in the future, there will be options as we move forward.

Our next question comes from Peter Supino with Wolfe Research.

I'm thinking about the profit recovery potential in Las Vegas. If memory serves, you have about $600 million of capital invested in Las Vegas PP&E. And understanding and appreciating that the LVGP has benefited the entire sport, is that original capital investment something on which Liberty realistically expects to earn a stand-alone return on capital that's better than your WACC?

Yes. I mean our goal is certainly to earn a return on that investment. And as you rightly point out, and we've pointed out a few times before, less and less are we looking at the stand-alone economics of Las Vegas because as Vegas continues to grow and mature and we continue to work with the partners in that market, you see benefits to the overall ecosystem, some intangible and a lot of them very tangible. So -- but overall, yes, we certainly aspire to earn a return on that investment.

Our next question comes from Joe Stauff with Susquehanna.

I wanted to ask if there's anything you could share with us on MotoGP and just, say, the expiration schedule for the existing race promoter contracts that you have? And then the second question is on the new race promoter contracts within F1 you announced in Canada and Austria. Is there any sense you can give us on kind of like the average growth that you'll realize over the period? Or any delta you can share with us, please?

Yes, this is Derek. On the first question with respect to race promotion at MotoGP, and I'll let Carlos talk about it in a little bit more detail, but there is a sort of a regular cadence of renewals probably coming up our new races we announced, I think, earlier today, both the Buenos Aires race or earlier this year, excuse me, but I alluded to it earlier in the call, the race in Argentina and then the one in Brazil coming back. So -- but with that, I'll turn it over to Carlos right now and give a little bit more detail.

Thank you, Derek. Yes. On promoters, we're happy to say that it's one of the biggest areas of growth for the sport right now. We have a lot of demand of new countries wanting to come into the calendar, and we do have space on the calendar, even though that we have a 22 race maximum agreement with the teams. There are -- we have 4 races in Spain. We have 2 races in Italy and other -- let's say, other events which could be substituted to bring new markets in. This year, we have announced Buenos Aires to join the MotoGP calendar from 2027 and Brazil to return after 20 years. Both of those have considerable increments on the events that they are substituting. We have also announced renewals with events in Spain and France with very significant increases on the fees. So we do see a huge pipeline of demand of new countries wanting to join in. Of course, with the expectation around the partnership with Liberty, we do have to think about this strategically and keep space on the calendar for new markets or extending our presence in other markets. So we do see that the cadence of those contracts are increasing. The countries and promoters are looking to expand their agreements. They're typically 5 years, but some are now longer for up to 10 years.

Great. Thanks, Carlos. I think on the F1 question with respect to the two recent renewals, we're not getting into the details of what those renewals are. But that being said, both of these are important markets for the F1 calendar and also bring other components to it, including the media rights renewal in Canada, but I'll let Stefano articulate that in a bit more detail.

Thanks, Derek. I just want to reassure you -- assure you, Joe, that the delta are definitely positive and positive not only in terms of financial contribution, but also positive for the ecosystem. Of course, every Grand Prix of every promoter has a different considerations to be recognized. For example, the [indiscernible] has to recognize that there is an incredible effect that we have from the investment of Red Bull in the F1 ecosystem, and this is pretty clear. On the other hand, Canada has been always an important market for Formula One, but there was the need also to invest by them in order to create the right environment for the growth. And that's why the fact that we put in place new facilities, new Paddock Club increases in terms of opportunity for us and new grand stand for the fans will all help the profitability, of course, from the promoters and also for us as a commercial rights holder. So I would say everything is taking very care in consideration, knowing that everyone is a specific reality that has to be considered differently. But overall, everyone is so supportive on our approach because they see the benefit also on their own. We create a business opportunity wherever we go. We create interest, we create the fact that everyone is using F1 to make sure that they can explain to the world what is behind the race. That is not to me. On the attention to an event is an attendance of attention to an ecosystem in order to produce technological inspiration and create what every country would like to bring home by hosting a Grand Prix. So overall, the delta are definitely positive everywhere we go.

Our next question comes from Ryan Gravett with UBS.

With the MotoGP deal closed and the split coming, I was just wondering if you could provide an update on capital allocation plans and priorities from here. I know you talked about getting to 3 to 4x at MotoGP, but how should we think about the right target leverage at the F1 OpCo level and just your general thoughts on share repurchases.

Yes. Thanks for the question. We -- as you rightly alluded to, we are delevering as we speak. And as we kind of come out to a point where we feel comfortable with the leverage, I think we continue to look at opportunities in the marketplace, which has always been sort of Liberty's mantra. That being said, from an M&A perspective, we always will have a high bar there and keep a discipline to what we're looking at and potentially investing in. I think that this will play out as we move forward here, and it's certainly a discussion that we will continue to have.

Our next question comes from Steven Cahall with Wells Fargo.

First one just on F1 TV. I'm wondering if you've done any assessment of those subscribers. It seems like maybe some are super fans, some are cordless, definitely some could be both. But as you contemplate maybe moving to a streaming partner for some of your rights, do you worry that there's any cannibalization risk of the folks that are cordless and just may be able to find that content for the subscription that they already have? And then a second one, just on competitive balance. I was wondering if you could talk if there's anything new in the Concorde agreement around this. We have another F1 season where 6 of the 10 teams aren't really racing for championships or podiums. I was wondering if there's anything in the new Concorde that might balance that more -- a little better over time. I know you have some financial controls in there, but it hasn't yet kind of moved out of the steering effect that you've got in the field.

Yes, I'll start. And Stefano, I will turn it over to you since I know you love talking about competitive balance. But on the first question with respect to sort of streaming platforms and F1 TV, the reality is in the world that we live in, it's not sort of one or the other or sort of the concept of -- - you've got to just make things available to consumers and to fans wherever they sort of want to engage with you. And so that's, I think, what the overarching goal always is, is to try to provide your content in as many places as possible that consumers and fans can easily access. But with that, I'll turn it over to Stefano.

Thanks, Derek. I mean just to go to the competitive balance, Steven, I think that we need to be considering F1 not in one season. But if you remember 2 years ago, McLaren, who is today leading the championship was last in the last row of the first Grand Prix in the Boeing Grand Prix. So I think that what has been done with regard to the budget cap and the possibility for the teams to -- that are able to win to have reduced time of wind tunnel and some other effect on their development is having an effect. The gaps in terms of the difference between team to team has never been so small. And therefore, I mean, on that respect, I do believe that we are not worried at all about these assets. And I would say the model we have put in the Concorde is absolutely fair because there are so many variables that we will try to consider everything in order not to have something that is -- can be perceived sake. Therefore, I do believe that the more that you are creating in terms of attention to the fact that if you are more successful, you can get more money from one side. But on the other side, on the sporting side, we are trying to create the right content from the sporting and technological regulation in order to try to keep the pack as comfortable as possible. And this is the duty of the work together that we have to do together with the FAA and on us on both sides of the cab.

Our last question is from David Joyce with Seaport Research Partners.

I wanted to ask about MotoGP. You already talked about the race promotion cadence, but could you help us understand the typical duration of the media rights contracts and what might be expiring in the next 12 to 18 months? And similarly, with -- on the sponsorship side, I know that's a ripe area for growth there. What are some typical contracts there? And how would those be renewing?

Thanks for the question. As we are thinking about sort of both of those categories, clearly important pillars of our revenue and our growth. And as I think Carlos, we spoke about earlier in terms of sponsorship and sort of that area, we do see a huge amount of opportunity there. We do think it's a long build just because we've got to sort of tell the story, get the potential sponsors and people bought into what we are, what we can do for them. And just like we saw with F1, that will be something that happens over time. On the media rights, we do have a variety of deals coming up, as you might imagine, over the course here in the next several years. I will let Dan speak about that in a little bit more detail. But again, I think the goal there is probably to broaden the reach and continue to sort of build the brand of MotoGP and in the conscious of sort of the general market. So that's sort of where we're pushing. But Dan, why don't you take that? Dan Rossomondo, Chief Commercial Officer at MotoGP.

Thanks, Derek, and David, thanks for the question. I think I'll start with the media part first. I think the great part about our sport is that we are truly global in nature. So we have to be relevant and have the right media deals in a variety of countries. And everywhere we go, we want to have the best and most thorough distributions. Our deals do have different cycles, as Derek said. And I think the other really key part that Derek said is that we need to sort of change with how today's consumer is changing, where they're watching things, how they're consuming content. So we're always looking for what might be the next really key distribution methods, and we hopefully keep flexibility within our agreements to sort of touch on that and to change that as we can. On the sponsorship side, we -- it's been said a few times. We think that's a huge area of growth. One of the real reasons why we spent so much time and invested so much money over the last year on the brand identity and on building up both the business analytics and the marketing team was so that we can go out and tell better stories and attract new brands into the ecosystem. We have a variety of partners that are endemic inside of the industry. We have some really great ones that are not endemic, but we clearly have to build out that build out that pillar of our business. And we're going to do that by becoming more attractive to brands that they want to tell stories with us. We want to get them to know our riders better, and we want to enter into long-term deals with sponsors that are like-minded and are really, really good marketers so that they can help us build our business and attract even more fans. So that's where we are.

Thank you, Dan. And I think that's our last question. I want to thank and welcome Carmelo and Carlos and Dan. Thank you guys for your participation. Thanks, Stefano, and thank you to everyone who joined the call today. We appreciate it and look forward to speaking again soon.

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.