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spk_0: ladies and gentlemen thank you for standing by welcome to the liberty media corporation twenty twenty one queue for earnings call during the presentation all participants will be in a listen only mode afterwards we will conduct a q and a session at that time if you have a question please press star one on your telephone as a remind or this conference is being recorded february twenty fifth i would now like to turn to comforts over to korea john chief portfolio officer please go ahead
spk_1: the morning before we begin we'd like to remind everyone that calling or looking statements within the meaning of the private securities litigation the format and nineteen ninety five actual event result could differ materially due to a number that uncertainty and including those mentioned in liberty media most recent one hand and you are liberty me yeah positions for f one registration payment file it forward looking statements the only other the data that call and liberty media and liberty media acquisition because briefly disclaims any obligation or undertaking to disseminate any updates a revision to any forward looking statements contain here and turf like any change in liberty media or liberty media acquisitions expectations with current their to or change and events conditions are circumstances on which any such a minute based on today a calling the cops are non yeah financial measures for liberty media and sirius affect them including the just had wiped out and adjusted ebitda there current definitions and reconciliation for liberty media sirius xm scandals one you can be found at the end of that range pressure only issue today which is available on liberty media website now i'd like to turn the call over to greg with a liberties president and
spk_2: theo
spk_3: thank you called me and good morning to all of you today begin the call we will also have only the ones president ceo stefano domenicali and liberty cheap accounting principles and the was surprised when when so beginning with liberty curious no special especially when we expect our share those to be about seven hundred and seventy million dollars net of a path through to bondholders we get continue during the quarter repurchasing shares bring back one hundred and eighty nine million dollars across our family and i'll check them case years from november through january a you know the discover maimed and we therefore we were able to purchase or shares and he looked your price of a jury of just over four dollars we will continue to take advantage of the discount opportunity we also settled the exchange of are two and a quarter live nation exchangeable in january for consideration of six hundred and sixty four million dollar using cash and some margin loan draws looking at the underlying been a serious like them they recorded record results for the year record high subs revenue and adjusted ebitda and i also experienced i'm fifty three year of improving churn new car penetration is up to eighty two percent from seventy percent the prior year and we launched three six yell and more than thirty new vehicle models modeled across various or yams in twenty twenty one now more than twenty five percent of sirius xm equipped vehicles sold him and one quarter incorporated our new three sixty l opportunity we also teamed up with apple and discovery during the quarter adding twelve month subscriptions apple music and discovered plus for new and existing platinum vip plan subscribers he introduced audio id powered by add with a listener identity solution enabling marketers to reach and connect with consumers and scale schedule went live with distribution of monetization a popular crime junkie podcast and january we launched no excuse artist channels including the lead key david bowie and you're young and we a small stage series of intimate live performances which featured premier artist spanning music generations including and she you're in the goes her j cole and john mayer and more so a be the court
spk_4: at live nation
spk_3: a great quarter as well fan of tenanted outdoor events in the us and uk in the last five months and twenty twenty one was up twenty five percent versus the same period in twenty nine p on site spend the per cap continues to grow at double digit rate versus twenty nineteen and ticket sales in october november december where the top three months ever in terms of gdp we have expanded our venue poor boy as well adding thirty one knew that news and twenty twenty twenty twenty one path through the offseason acquisition every leading indicator in the business reports point to a record twenty twenty two confirm show kept would february is up thirty percent versus twenty nine team we sold forty five million tickets for shows this year already and know show rates are back down to their two thousand ninety levels by live nation is entering it's strongest multiyear grow chapter in a concern history what gave the formula one group on the corporate side we affectively repurchased two point two million wanna and one cashiers at an average per share price of fifty eight fifty nine that included both wanna share repurchases and an effective share repurchase of walk shares due to the purchase the underlying sixty four million of one cat convert that we boy and now let me turn your app one and first address the circumstances and russia i'm sure you saw our statement this morning as we said we are watching the situation with sadness in shock and it's impossible to hold the russian gp and the current circumstance turning back now to twenty twenty one what a clip enter a cliffhanger ending to a thrilling season and since then we've had a month of announcement coming out about one with more to come bands are attending and tuning mean even with coveted affecting a good chunk of the season we saw very strong attendant and tuning across many platforms one point five five billion of cumulative tv viewers with the highest rate viewership being a one hundred and nine million in abu dhabi which rival that of the superbowl average attendance was up fourteen percent on like for like races and once again we saw a great growth and social media followers making f one once again the baptist growing major sport on social media we signed numerous rates were north and desirable locations showing continued strengthen our contract and revenue and we continue to further our sustainability initiative f one came in at number two have a hundred and two global motor sport championships evaluated by the up a on a sustainable championship index ahead of many such an extreme emotive gp and nascar we are ready to kick off our record breaking twenty three race twenty two season and we hope to do you add some it's not all of the racist
spk_5: turning out of the brave
spk_3: we kept off and incredible twenty twenty one with our world series title but in addition to that we had two hundred and thirty nine home runs which ranks second the nationally we had a three point eight eight you're a with with second best in the alleys and they're too many player accolade to even name the world so series trophy tour will visit one hundred and fifty one stop celebrating the one hundred and fifty one season of braves baseball and we will start twenty twenty two with the highest number of season ticket holders and twenty two seasons since two thousand we are sold out of our premium seats for the first time into was park history in caught including all the swedes the premiums these include most with and tourist park will hold by stadium concert in twenty twenty two it have never tk tower and innovation center grand opening took place on february ninth and in twenty twenty one the battery had close to nine million visitors including three hundred and thirty thousand during the three world series game we also did clothes on the sale of the minor league teams in january the geographical i'm in of the teams is important and the major league real reorder minor league last year ensured that this will continue the teams do remain affiliate for future player development let me get a direct the cb april one moment we are certainly aware of the latest developments in our discussions with brave management but obviously prohibited from commenting any further we continue to review opportunities for l mack this back as i said before we do believe the turbulence in the stock market has made deals more difficult but actually will benefit liberty and our strength and with that let me turn over to brian for more financial results
spk_6: greg good morning everyone is greg mentioned in january we settled exchanges on the two point two five percent live nation exchangeable bonds for a total consideration of six hundred sixty four million dollars this was funded with cash marginal draws including drawing in part on our newly amended libation march along with had upside can keep warm
spk_3: acting appreciation and the underlying nicer share price broken up for the exchanges liberties years like some group have attributed cash liquid investments in liquid public debt and equity securities of approximately one hundred forty three million dollars which excludes one hundred ninety one million in cash how the theories like them
spk_6: we also have nine hundred twenty five nine of undrawn margin than capacity at the parents as of yesterday to close the value of the series that dark held at liberty series like them group was nineteen point four billion and evaluate the value of the live nation stock held with eight point seven billion we have three point one billion and principal amount of debt against these holdings pro forma for the exchanges a blemish unchangeable off
spk_3: oh pro ana liberties your next them group attributed principal amount of debt the thirteen point one billion which includes a point nine billion of debt held directly years like them
spk_6: formula one group had attributed cash liquid investments and liquid public debt and equity security one point six billion a quarter and which excludes seven hundred ninety seven hundred nine nine of cash held that formula one
spk_3: total formula one group attributed principal amount of debt with three point four billion which include two point nine billion of debt it up one leaving four hundred fifty five nine at corporate level
spk_6: greg mentioned in the fourth quarter we repurchase sixty four million face value of one percent while converts effectively retiring one point seven million underlying plot shares formula one five hundred million dollar revolver remains on drawn and formula one's leverage at the end of the quarter was four point four times we are providing our target leverage range down to be less than five time i go for basis now we are still in appeared covenant waiver until march of this year as previously disclosed beginning and mark in january twenty twenty one at one began reclassifying certain components previously reported another have one revenue into primary up one revenue to better align with the way currently evaluating the business components reclassified and the primary of one revenue include up one tv subscriptions of to and have three related these broadcast origination and support the as well as digital advertising amongst other additional details including the impact of the revenue reclassification for the years and and twelve thirty one nineteen and twenty can be found it's get a poor earnings release posted on our website the quarter and the bridge group had a target occassionally good investments of one hundred and forty two million which excludes one hundred two million of restricted cash found their balance sheets rights group had attributed principal amount of debt of seven hundred nine at the end of the air liberty in arkansas did it is subsidiaries on compliance with the record with that i'll turn it over to stop noted discuss formula one
spk_7: thanks brian
spk_8: there two thousand and twenty one team will be discussed for the came to come as one of the great it came down to not just the find the race let to the final lead for much the top and two edged path lose some of them and when it first world champs we look forward to these the a rivalry in two thousand twenty two between making noise who will be returning to pursue his eight world championship and we hope to see new drivers moving up the feel to challenge for potus more regularly as shown on and off the track wrote in fans in person and across all platforms we saw two point six million fans and grandstand around the globe either thought we were limited in our capacity due to code did include three that with attendance of over three hundred fifty thousand the us great britain and mexico eleven events attracted crowds of over the hundred thousand people our total kuma pm pt odious over the season was one point five five billion an increase of four percent over two dozen twenty the average owners the race was seventy point three million with our biggest oh this is of one hundred and eight point seven million tuning in for the season now they never dhabi market that so significant growth in kuma people oh this is where the netherlands italy the uk spain and the u s our sprint events proved to be a drawl with a p the average audience up lethal seventy percent for the weekend looking only of markets were like for like in the rain and women pain i got two thousand and twenty and twenty one the average audience is was sixty point three million up to bless her thin on it and the best in two thousand and thirty please note that the into doesn't win he won despite our broadcast in the regiment in germany and brazil changed significantly we so positive developments in brazil we are now and join far more in depth coverage and more how was of f one be broadcasted than two dozen twenty in germany cause community vote this is in two thousand twenty one have seen significant growth of plus fifty five percent the it on the it our digital reach was very strong in two thousand and twenty one social media followers group forty percent to forty nine per one million once again making pull on the fastest growing mages totally you follow the good old we thought at one point five billion engagement with the seven billion liters views and for web app unique users video views and page views were all up double digit the digital share of video minutes consume the increase from ten percent in two thousand twenty two sixteen percent two thousand twenty one we look forward to the south of the seasonal much twenty in buddy we have a local twenty three races season plan and as scheduled to the to too many tracks we could not be done in two thousand and twenty and two thousand twenty one we are extremely excited to welcome the miami grand prix to the callender in may and again reached a unanimous agreement with the themes and the athlete to again have the spring after he ben is the shit he mullah austria and brazil on the dreaded prompt we look forward to the new pairing of lose him at the george russell that a ton of alex album and we welcome on you'd rather for the grid with the ones you do join in alpha male who would provide a time and opportunity to engage them grow elbow from beijing china speaking up the two thousand twenty two season the
spk_9: there are many changes to the cause and regulation old aim that the brutal regime an increasing relevance to wrote cop acknowledge the most visible change will be the sweet girl thirteen inches to eighteen inches ties with covers this along with the other changes to the regulation have the goal of reducing their the only way coming enough because
spk_8: with the aim of allow in foreclosure ration a mall the thing safety is also full and then you two thousand twenty two cars will be able to absorb more input of the front and latterly additionally more components of the car and now standardize we should help keep costs down and promote close goes racing in addition changes it will also include the implementation of he then who little in the f one cause comprising ten percent ethanol which will to reduce c o two emissions and a free zone performance development for the power unit it promotes the first we have recently made many exciting and announcement drive in future growth what i was caught on the nation probably extended race agreements in china to two thousand and twenty five singapore until two thousand and twenty eight abu dhabi and poop two thousand cooking spray and two thousand purposes but a lump in two thousand purposes and superbowl medical to two thousand twenty six each of these locations bring something unique to the calendar and we appreciate the long term partnership in which our sustainability god's will feature prominently on the sponsorship from it is a busy time with robots the and for the and the pretty strong pipeline of discussion on going we're spread to ask for the details soon on a number of opportunity that have been progressing in the past few weeks or maybe you're right you to the cause of don't fox sports channels in october two thousand and twenty one we successfully concluded nine new partnership across southeast asia secure new broadcaster the in hong kong singapore indonesia malaysia and brunei papua new guinea of the philippines thailand vietnam and myanmar we also extended i would exist to publish you with the groom japan and india in addition to this we will also have a new partnership in the netherlands for the south of doesn't tribute to championship season with a viable a man new streaming platform that doesn't would twenty one f one sport see this project chevy she presented by aramco also have a winning season massive is yeah them open the mayor clinched a second consecutive title and secure the team championship for methods the doesn't hurt the one f one season audience and that his biggest group viewership an engagement records building upon the huge momentum gathered in two thousand and two plump the full series which ran through out two thousand twenty one a cheap over twenty three million views across digital platforms are hundred
spk_9: three percent a year on year increase
spk_8: we are ready onto the second step of qualify for two thousand twenty two is four theaters and look forward to another fantastic season ahead we compete to back in our ears initiative to address the biggest issue facing our sport and global community sustainability the a major focus for formal one and many of our promoters partners that are getting at is where we can that have waited and borrow mental and socially i initiatives can take many forms including a hundred percent sustainable fuels in two thousand and twenty six i've engine renewable energy sources that goes around legit carbon emission in the cab of pooping increase your recycling levels see live we can say is on all their own energy costs they should be working with our promoters pauvres on event sustainability a compressing he or she briefing note supposed to twelve or website i encourage you to read it we recently announced our extended on the commitment to the pool one engineered a scholarship program for are represented the group through two thousand and twenty five papilla would drive to increase diversity within the sport different was launched in two thousand twenty one with the selection of them scholars in the uk in italy and the scholarship covers the full cost of a student tuition and living expenses for the poor duration of their degrees as part of a a wider problem of diversity inclusion initiative former one as also committed to create plenty apprenticeships and homeownership across our business in advance of the miami grumpy we lost the f one is cool them program in miami gardens one is calling the largest step program in the world operating in over fifty countries and providing the hands on interactive experience to develop key engineering and social skills we were proud to announce that the wc this would computer to join us at eight former while races in two thousand twenty two the series with visit five new venues in two thousand twenty two including making that in asia we believe in the importance of providing everyone the opportunity to reach the highest level of over sport and i publisher with the wc to demonstrate our hours so to be a greater diversity of those formula it is likely just concluded our three in two thousand twenty one season while we are ready for the twenty two we believe in the new regulation than the changes the to the cars combined with all rivalries and new drivers would provide more drama on and off the track get ready by watching season for a drive to supply which airs on their quiz on march eleven avanti to that puts do that and now i will turn to call back over to play thank you bye bye
spk_10: thanks definitely by
spk_3: listening audience we pressure your continued interest and liberty media and or to productive twenty twenty two and with that operator i liked open like a court
spk_0: thank you if you'd like to ask a question please signal by pressing star one on your telephone keypad if you're using a speakerphone please make sure your mute function is turned off to the your signal to reach our equipment again pressure that want to ask a question we will take our first question from vj jack please go ahead your line is open
spk_11: and the morning
spk_12: couple questions on for a buyback first one on formula one of the you leverage target for to talk about today but younger two billion a cash lot of free catholic generation in august the but i got least that toby think and twenty two and two and onwards in the talk about you know how we should think about by back at at for me the one going forward conceptually you that a gun to your let your new letters target but it's way below that right now so that's like was one of them sort of on on on sirius xm obviously they announced especially dividend you must understand why special didn't work out of a buyback the topically and and that selling into the by that somebody to that you called out on a dividend it is that really have to do with the live nation exchangeable payment the time and maybe the got back to another strategy that on on on the talk apple and you
spk_3: i can be a lot of questions okay we'll try a on the buybacks on one you'd note i'm sure that we did execute on buybacks antoine effectively and we're doing both liability management and buyback their what we repurchase those in the money converts that effectively both debt reduction equity by back you've seen that we have quite like cash and free cash flow generation and we do have an open to buy in terms of a board authorization of purchase i don't think we've ever said you know we're going to buy action a quarter or we bike by acts but you can look at our history you can look at what we've done what we have a free cash for available cash
spk_13: and assume that we will
spk_3: act as we usually do in history we are off looking to be fair it opportunity that one may help the l mack this back so far those a bit difficult but we do keep in mind that there may be opportunities and right outside just the sheer approaches but as you noted we have quite a lot of cash and a lot of free cash flow so i hope that the around and up and around our intentions at what other things might come and arise
spk_14: on fury
spk_3: sure i believe is stated that they tell don't try to do buyback back obviously that's not entirely in our control we're on the board but there is a independent group of directors who also have a pine on where cash should go they do have some of their own constraints are out how much they want to shrink their available float and there are triggers of things like ninety percent that they probably are fearful of crossing in a hurry so they have their own issues around share repurchase we have our issues around selling into the buyback because it is not actually not taxable to attack unless we have a relationship directly with the company that complicated given some the ongoing litigation so if we were just to sell and maintain our equity position that at the effective looking like from attacks
spk_13: prospective a dividend
spk_3: so the special dividend was not taxable the us and we've got it attractive both help address of the liability management issues that him pointed out and to allow it to continue to share repurchase of that helps answer some your questions
spk_15: he that like correct
spk_0: we will now take our next question from been swinburn please go ahead your line is open
spk_16: basically morning
spk_17: maybe a couple on f one and then if i could ask a braves one as well
spk_16: stefano what's what's the pipeline look like for race promotion or or new host cities other see the that a lot of news about las vegas
spk_17: there's kinda disappointed demand so that you guys are replacing russia with something else can you just talk about the outlook there and and can you stand the count beyond twenty three races realistically are the teams on board with that that's my first one and maybe for your drag on the us media grade steel that's coming out yeah you had this great success with the s p n how are you thinking about reach vs modernization in a few feels like the u s c and a fairly limited platform like he has been plus but you know a big fat check what what's your priority as you look forward and then all of our my bridge one after that thank you
spk_3: fri they have an outrageous for ya
spk_18: debra glad it's okay for your greg our go ahead on that show a good morning and from london the fact that with the question i mean i just gonna regenerate one point that is related to the fact that now are you to the great success that the f one flapping seven and the they're they're their the that is a possibility will have a new races
spk_9: in the future is is feel very very big i mean if you are talking specifically about that the situation the sheer because of the russian situation i just can comfort to you that the we have what are the blue last year in the last couple of years to be very flexible than the not to have any problem and and filing possible solution to that so i can we just confirmed that the
spk_18: it could be an option for the year with no problem at all with regard to other in our voices around possible venice for the future yeah i mean we can just say that the that a lot of discussion going on we need to make the right choices for the through that you market the we believe that the rhineland for from the one but for sure i mean a a we expand the callender because technically speaking the as you know we can go up to twenty five that these that exit written in the in our regulation and coughlin agreement and they would follow our vision on that i would say that the it so that the is something that we don't have to forget that the she will be the twenty three calender races is the highest number races than that
spk_9: in the history of former one so i think that we can watch that in the right away that taking the right the season are not in a rush for that he just to make it over to in the name of the different pussy be that we have in front of us
spk_3: got all add on that you to say i think step on own team and the at by and at the team themselves have done a great job managing both through the flexibility of covered but also increasing number races we understand there are can get you into are less enthused about that and we have to do it at the races in a way that is logical and doesn't strain the resources of oddball so what's the up twenty three grow goes and it and are rightly noted contracts we can go to twenty five but we're going to in conjunction with our partners or the meteorite i think you probably know and credit chase and all obviously someone you can add any comments that we took out a perspective on taking a shorter broader deal mean broader coverage over the money on the latvian i think that paid off we will way what's available you worked and i don't think is you know it's a complete you know trade off there will be degrees of access degrees of coverage and they'll be degrees of money and obviously
spk_19: the the
spk_3: the benefit of more us races and more potential us sponsorship are more global sponsorship which one's the us president wade into worth thinking about that breadth as well and how long a deal we want to cut we're very confident that are product will be more desirable in the coming years in the us that even it today we continue to build enthusiasm and audience cetera so it's not just brett and money it's also duration and will weigh all the actors
spk_17: not that during you want her getting on that the
spk_8: not absolutely birds put on gregor a that picks up exactly the point that we need to measure between the oh the ratio between a warm as growth and the and and the return on our on that thing is that is that a key point that and also have to say and of the come the that developing the new market the talking about for one
spk_18: it's something that we are really focus on because we are happy now the possibility of engage with new fans then needs to the temple wow with a different cup so it's up to us to provide the ride quality of the right type polish that would be different from the avid fans approach so that's the beauty of of these challenge though we have in front of us but is it oh brave new to have to say
spk_17: yeah and then gregory and for you know there's a lot in the news also about direct to consumer sports networks and and diamond scored and bally you can use from one is what what you're right at the brave level and from the either enabling are not enabling a sports service in the southeast and
spk_3: and then you in the other thing you you know the cable to this well to charter etc you think the market can bear a direct to consumer are as then without putting the food distribution benefits of pay tv in the region at risk and that's a that's a pretty tricky balancing act but what's your perspective from the braves point of view there are certain out of market right the could get triggered but frankly the wage structured i don't think it's attractive for most teams to do that so i don't think that will happen and you seen rob manfred comments i'm sure you have about that those are not owned by diamonds and clara valley whatever we want to call it and there's not really an incentive the wage structure to trigger those you know how a d see offering will play the over the top offering again the rs and seems pretty self evident if you can get it on t see you're going to put more pressure on you know the negotiation between the mvp these traditional mpp the and any suppliers of an artist anti product so i get to
spk_0: a little like that discussion around reach bread and money and time they'd probably not an absolute relationship and a those but obviously competitive offerings makes the bundle product that much harder to push
spk_3: thank you
spk_20: we will now take our next question from david karnofsky please go ahead your line is open
spk_21: tokyo
spk_8: christopher gregory peck know when trying to survive that release interview rica networks would be interested to get your golf and how you view the important to the series the formula one and it's group you're obviously it's been a notable prepared for figure in the united states in terms of wide being a fan base d c f one you know continuing this for the way long term and is that something where you could get by and from the team
spk_18: don't i'll let you go first
spk_8: okay thanks where our is no doubt david that the dried to survive that than incredible effect mainly on the new audiences and they're also another new markets like us for sure and and this will continue and i can anticipate the you that the yet to stay tuned in his seat is because i've just had the pussy be to see any with it
spk_3: you will be fantastic and it with the right oh man as you can imagine what the weather's up unless she had a that will be a lot of a lot of action on the so that's good but you know i think that what we have shown as former one a is that been always to be in front of a that that change that that everything has to happen so i think that the people orton for ask to be with right to survive with our nephews friends it up to the moment where do we believe that will make sure that these are the finish compactor if is becoming just a different way too narrow to to speak about the a well without diving or gave to fall on platform that the added value maybe i think it's better to renegotiate and see with nepalese to with the other pilots work would be a possibility to do something different in the future but for sure you know this is that these platform there's been at a vital point on the global of awareness so mainly with the young generation and when you come as a for more and for that we need to think that vision and a brother that the quality of that that has been really are a very very good i agree with definite comment from a bit packages that a couple more i think it's a great partnership while clearly it helped us and you've seen growth and our tv audience for example in the us grow as we noted fifty eight percent this year and our average age of the last year's has come down for years in terms of our who are our fan base you know that contrast dramatically when how other sports many other sports have it both aging fan have been declining tv viewership that having been said it's a win product for netflix into it with the number one at some point during the year and twenty seven country it is relatively cost effective programming for them
spk_13: so i think it's an absolute when it that as much as netflix the done for us i'd like to think we've done well for netflix don't want to talk to read and ted i know they're very enthused about the product
spk_3: we clearly seen a change them in cali the teams i loved the total about how he added that drive to survive in the first season wouldn't pretend to pay added had to host of reasons and now i would describe a pretty enthusiastic fans and i think he is representative what the way most of the teams feel
spk_22: so a way it's been a win all the way around
spk_20: cooley grown our sport not only new us but around the world
spk_18: but it is a great thing for netflix as well so i opened the marriage continued for a long time
spk_20: and and maybe just one more professional would be you know if you need to get your thoughts on the country concepts partnership
spk_18: you know what's the opportunity in terms of broadening the fan reach here and can you say would one long term financial and thanks
spk_20: towards that can repeat the question because i had the aka cut off of the line sorry turn want to get your high little beyond the kindred concept partnership he doesn't have a few weeks ago with the opportunity to broaden and richard i'm afraid you know the financial commitment
spk_10: hello
spk_18: they be sorry for that but the it on e bay i couldn't hear that
spk_8: pi yeah no i i hope i'm coming through a we just wanted to get your high level thought your at if you can't say about podcast
spk_0: the opportunity to broaden the fan reach any any way to frame the financial commitment
spk_23: it's about the podcasting stefano
spk_17: ah okay sorry because the line is not very clear to us and of i need the this something for sure that the is that is an opportunity to increase the said that the possibility of all vote for our five to be connected the in a different way of talking about former one so potentially is great and i think that that together we can do really good stuff because of the end of the day is something that the a is going to be a very important to increase the once again the level of a what is a one because i know that a book is getting it's getting there and the having a bigger it for the future
spk_3: i get we will now take our next question from jason doesn't a please go ahead your laden is open i've sort of a dumb question
spk_24: perhaps erroneous way i was operating under the assumption that if sherie get a buyback and you participated in that by back at those proceeds with tax free to you because the texture sharing agreement but i think at the beginning of a call and response to pages question you can get it's and potential complexities
spk_0: related to that to do magic circle back to that and elaborate a bit mr murphy
spk_25: abby to do that jason so if you look at the deal for example where liberty broadband cells in an agreement we have directly with charter back to charter that and one kind of a relationship we do not have that current tax deal with sirius xm we have a track sharing arrangement a related to the fact that we an hour and eighty percent owner but we do not have a deal to sell a certain percentage of our stalker comments or percentage or hold our percentage weird sirius xm if we go into the marketplace that is taxable if we fell back to the company being over eighty that would not be taxable but we do not currently have that agreement with theories xm that makes sense okay thank you we will now take our next question from david joyce please go ahead your line is open thank you to questions please first on sponsorship for formula one lot of investors have been wondering why they're possibly hasn't been over sponsorship generation since you have acquired formula one
spk_18: given the third look like they're still be ruined some from categories for some the global sponsorship deals and also in light of the large oracle deal for one of the f one team so what's the what does the what does the sponsorship success of the of one teams and do to your efforts for
spk_9: for now the potentially new growing that revenue line somewhere
spk_18: and then thicker the secondly just a technicality on elmer do you have to have a that
spk_3: an acquisition bill announced or a fully clothed they're by the end of the new two years into your period at the a little early next year thank you well they the for whether got the sponsorship or a poor one a as i stated before in my in my speech you know there are a very important negotiation that that in place so we cannot anticipate the dead or the other that the outcome of it yet otherwise we'll know
spk_13: it water it's clear that the world of former one in a and is really a capable of attract new sponsor she both for for for for the commercial older and also for the teams that means that the you know we're already doing a good job and that that is a lot of interest or around the platform air with or got to either the said the i
spk_26: think that they're the in in the comics we be going to to see some good news though we can share together
spk_0: i am not l mack with back
spk_12: to bring it to get a deal done in two years but there is an opportunity to brought the pay a little more mining stand for another year so i think we're and and three months path that and then we can extend for another year by paying for some more money so i think we have
spk_18: a fair amount of runway left and we found something attractive
spk_9: great big you very much
spk_18: we will now take our next question from stephen logic please go ahead your line is open great that you a question on that one ticket prices to be seen some pretty strong man pale when them alive and that thing coming out of endemic our wondered if you can maybe taco that more about you work with promoters on the take a break and strategy maybe the opportunity here in a couple of years the benefit alongside the car no one pick up in pratt said these deals are now thanks been on for the question you know we've got to deacon pricing of the did the that the the promoters have the right to and not the right even more to the knows the market but anyone else so easy able to prepare the different offer
spk_20: that he can offer to the different customer client and of cause we know that them we we we we are in poland above the strategy because we it's important that we give our our our position on that but the destructor we either so far with our promoter is that that this is a the business or which we want to give our input because we believed
spk_12: i'll be can add some bad news but they know better than anyone else would be the local market that the local interest and of course if if you just look what does that been in the last couple of or of events and because of this success you know there was a new way of a dynamic pricing that would say that we saw growing and this is some the something that is could be into a simple
spk_27: the future but so far in with the got to them all that this is the other mention that the best belongs to the to the to that to the to the promoter if you're talking about the puddle club experience of good that beat them a story this is something that we manage and this is something related to the fact that the we we know the market that we believe to to present well
spk_3: our customer right the the right price in the best with the level of and the quality of the is that we want to provide to them and as always this is something that we working on the other way around the but with the promoters because they know that market but them that this is a bit bitter that the you know the penalty from place to place is managed by us great thanks to that and then another one for granted the method believer that theory by that question too much here but i think you're weird give to a potential legal complications polite my not our better when material might not be able to have that arrangement with i hear that correctly and and that settle ago what's illegal in a lot right on that dirt you know the we would have to go to get attacks revealed we would have to go negotiate an arrangement with sirius xm
spk_13: or that by back and you know you might do something where
spk_27: typical arrangement might be something we bought back at the average wage and price that they bought back during the quarter or something like that
spk_0: but to have that kind of relationship would probably put pressure on the independent directors of serious
spk_28: at a time when we sing other litigation probably
spk_29: bridge too far at the moment at down the road will have something like that but we have no
spk_30: the deal signed and really have done no negotiation about trying to negotiate
spk_28: like that with the theories xm independence got it thanks for that
spk_13: will take our next question from dog mitchell some please go ahead your line is open
spk_28: i'll take the mods greg i actually would love to belabor the theory by that question so like like question greg is god we're going to be going to do to keep going
spk_3: the arm while the question is to the extent special dividend continue i know it's uncertain but the extent they did is the literally bias to use their cash for a dollar for dollar for share purchases at liberty theory or with the increased cash on and give you the comfort to lover up those theory shares you know amplifying your ability repurchase stock but also sort of increasing the the beta of of that position and do it's i get a while just ask where it away on formula one not to have to long term but my my okay i will come back or comeback that when got i don't want to that question because are you saying gay we get the special dividend we can repurchase or on here or what was your second alternative
spk_28: what like an alternative is you have enough cash on hand now that you should have some comfort to be able to pay interest expense for a long period of time so you could issued exchangeable
spk_3: war our our our margin loud and and you know with interest rates as as still as low as they are you could have a substantial amount of capital yeah i look i for go there are probably some constraints on how many more exchange it was we can do just given liquidity in the market that the a little bit of same problem and jury has on the share repurchase that much you want you are have availability but it would seem easier doug just use the cash we're getting in there are special dividend the by back with doctor ugly
spk_28: so that would probably be our first the inclination rather than doubled down with another exchangeable and use that cash were going to by to pay the interest on exchangeable
spk_3: and and i i think you've sort of suggested this with your comments on this call but of the last directly greg are there any other options for liberty to quote the discount vs theory that investors should be thinking about at this point well you know there are a lot of choices out there about
spk_31: clothing that if they continue to repurchase doc we continue repurchase doc maybe we close out and eventually become one hundred percent honor that in like at some point that the natural situation how we get there remains to be seen but i think all of those will
spk_3: the move forward to degree that we have special dividends and capital who's up to our tech them you know i think that allowed to go attack that discount with more bigger that
spk_32: our hope
spk_33: i'd understood and a formula one given to the coverage not work too long term but is there a pathway to take experience in formula one from a to the experience to three to experience and you know that practical given the races cover so much geography and and you know the rhythm sort of going there is you touched on as a bed in the comments but i want to us
spk_18: this more directly as well how much does technology innovation matter with regard to choose in europe broadcast partners when you're going through these are distribution renewal process of a contract and nothing much that but no answers well i can imagine few
spk_9: kind of life experiences you kind of
spk_18: sporting events that are better suited to the idea that metaverse and you know for example choosing your camera angle which driver you wish to way watch the races through what angle you want to see are you looking at at the driver from the driver across sideways
spk_34: look around the whole track i think the opportunity to limitless and your point about thinking how technology innovation will enter into that and you can imagine as we have the potential for new jersey partners who have expressed an interest in getting into sports programming who have capabilities they're all that opens up a host of new interesting
spk_0: ideas so i think we're well situated well suited to add that going forward frankly even the fact that we've had somebody bike like electronic arts by our distribution partner for or video game partner in electronics obviously having more job and strength probably than code mastered get a standalone bases all those lead up to i think more opportunity
spk_35: the future in that idea yeah my absolutely an active
spk_3: not absolute ago and well i can see that the value of our counted eat the differentiate them fact in a while they can help with twelve a customer know met that are at the door new or whatever they are whoever they are and on that respect that theme that you know that that the mix between technology graphic and music language is what we're looking for for the future because we had already starting to new technology that we can use a lady in the short term because they see they ain't to we see the interest of a of that and we we see that request that the the bbb from thanks to see something new and this is something that they are we gonna do because that that these a topic that these really a to to whom we are that's been always very important for former one a and at what they can say with proudly that that one has been always the leading edge all but how we can sell the experience through different channels to our customers and this is really what are we gonna do even stronger in the future they keep of we will take our final question yes we will take our final question from matthew harrigan these go ahead your line is open oh thank you are also put do with why this is the potential stupid question like like truth and of because it's an admirable approach but we have a number two p m t back me up pretty good brought from home of his with sectors like space that are fairly meme is is there any way to take advantage of that through your own some other financial nearing angle because you're probably better at sorting through the go through this with as a word them and some other people out there bucks
spk_6: oh thank you matthew well i think
spk_35: while gmt and had a bunch as you rightly describe a plot to inspect the probably not alone
spk_36: when we liked recently couple weeks back of the last twenty years back that had been done eighteen which reading below the ten dollar price now to be fair
spk_3: most of those back this is probably look into results in november december most as back to probably been
spk_0: the deal to cut back in the summer
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