Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Media Corporation 2022 Q2 earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press star one on your telephone. As a reminder, this conference is being recorded August fifth. I'd now like to turn the conference over to Courtney Ulrich, Chief Portfolio Officer. Please go ahead.
Thank you. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in Liberty Media's most recent Forms 10-K and 10-Q or Liberty Media Corporation's most recent Forms 10-K and 10-Q filed with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Media and Liberty Media Corporation expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media or Liberty Media Corporation 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 and SiriusXM, including Adjusted OIBDA and Adjusted EBITDA. The required definitions and reconciliations for Liberty Media and SiriusXM, Schedules one and two, can be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Now I'll turn the call over to Greg Maffei, Liberty's President and CEO. Greg?
Sorry, a little muting. Good morning. Today on the call besides myself, we'll also have Formula One's President and CEO, Stefano Domenicali, and Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling. Let's begin with Liberty SiriusXM, where we received a $70 million regular dividend from SiriusXM in the second quarter, which was tax-free. We also repurchased $93 million across the LSXMA and K shares from May to July at a look-through price on SiriusXM of 288 per share. We do understand the discount has widened, and it is frustrating. While the decline of LSXMA is in line with the overall market, further widening of the discount has been very disappointing. We still believe repurchases are attractive means to capture that discount, but it's becoming clear they're not enough to collapse it on their own. We are focused on this.
While not a fulsome list, potential actions we might consider include reducing debt at LSXMA to enable a combination and a not overly levered Sirius LSXMA, steps to better illuminate the value of our Live Nation stake, and other potential actions. I would remind you, at Liberty Media and some of our various spun-off entities, we have a long history of corporate action to capture discount. These include structuring the GCI acquisition in such a way it was immediately an ATB, the DirecTV RMT and subsequent sale to AT&T, and the subsequent separation of Liberty Expedia and subsequent merger with Expedia. In summary, we have options and actions we can take, and we have a history of doing so.
Let me turn to SiriusXM itself, which I believe is handling the market challenges well and maintaining their financial guidance despite a reduced sub guidance due to a weak SAR, which has been well documented for reasons like chip supply issues. They had robust financial results for the second quarter, including revenue up 4%, churn steady at 1.5%, and new and used car penetrations up to 84% and 51% respectively. We also announced extensions with important automaker partners, including Mazda and Mitsubishi. We made continued progress on our connected TV platforms like Amazon Fire TV, Android TV, LG, and Roku. We signed a new agreement to fully integrate a launched SiriusXM audio experience on Xfinity with Comcast, with video to come.
On-demand music listening in the SiriusXM app is up 41% year-over-year, and that's partly driven by the addition of new, unique, and diverse content. Overall, sports listening is up in the app. Our agreement to make Sirius exclusive third-party platform for NFL games is helpful. Keeping in the family, we also announced an extension with F1 to cover every race on the world championship calendar. Lastly, we're very excited about our continuing work in podcasting. Americans listened to audio up 9% last year, podcast audio up 9% last year, and our podcasting and off-platform business revenues were up 50%. We also expanded our agreement with Comscore to release AI-powered podcast audience targeting capabilities. Let me return to Live Nation, which announced very strong results.
It is clear live events are back on a global scale with yet another quarter of record results. Versus 2019, AOI is up 50%, free cash flow was up 72%, and that rose to $379 million. As Ticketmaster itself, AOI was up 86%, and the transacted GTV was up 76% again over 2019. Sponsorship AOI was up 81% over 2019, and important new clients included Google, AWS, and Hulu. We had the highest quarterly attendance ever, over 33 million fans, and our on-site fan spend growth continues across all venues. We have an outlook for a record 2022 with 100 million concert tickets already sold, fan attendance up 13% at operated venues and almost 30 new venues in the pipeline.
The 2023 artist pipeline is the largest we've ever had at this point in the year. Exciting stuff. Turn to Formula One Group. F1 continued to see record attendance and viewership in the second quarter. The Austrian Grand Prix was our second sprint event, and viewership was up 39% versus the 2021 Austrian qualifying. We're also benefiting from the return of coverage on CCTV, boosting our audience in China. Similarly, we've had record in-person attendance. Four races this year have had over 300,000 attendance, with incredible demand for the Paddock Club. The Hungarian weekend attendance, for example, with 290,000, was the largest ticketed sporting event in history in Hungary. We've seen strong ticket sales and sell-out demand for the rest of the year and the rest of the calendar as well.
The new regulations that were part of the Concorde Agreement are succeeding in enabling closer racing and demonstrably more overtaking. We are continuing to pursue trailblazing work around sustainable drop-in fuel and regenerative engine development, and we think these will have implications across the entire transportation industry. Turning to our most recent work in Las Vegas, we completed the land purchase at the FWONA corporate level. We're excited about the potential for this property. We do expect to have year-round activations on this site. The main paddock building, which is estimated to be 900 feet long, with the length of three football fields, will be exciting, and we're actively working with potential commercial partners to expand our opportunities there. We are building out the F1 team in Vegas across sales, marketing, race operations, and more.
We are leveraging local expertise and talent as well, including the LVCVA and our partners at Live Nation. We are still working through the specifics on capacity, but I'd note that our founding partners in Vegas, Caesars, Wynn, and MGM, are seeing incredible demand, and we haven't even announced the formal date. We will obviously share more details on Vegas over time. While some of you are excited you don't have to wake up early for races over the summer break, we here at Liberty look forward to restarting Formula One at Spa on August 28. Turning to the Braves. They've been playing excellent baseball over the past couple of months. As of today, we're just under .600 record for the season, and since June 1st, we have the best record in baseball, despite a sad loss to the Mets last night.
It's an exciting team, and the World Series halo is still driving fans to Truist Park. Braves attendance is up 23% compared to an already strong 2019 season. We've had 24 sellouts to the All-Star break and trending to roughly 50% sellouts for the year. Tickets, parking, concessions, and concert at Roxy are all performing well. We've had six All-Stars named this year, most for the team since 2011, and double the amount from last year. We just signed an extension with Austin Riley, a 10-year deal at $212 million, the largest in franchise history after outstanding performance by Austin this season, including a historic July. Alex Anthopoulos once again deserves credit for the moves he took to strengthen the team before the trade deadline.
We do remember how well this worked out last year, acquiring Grossman in left field and Odorizzi, a pitcher, both insurance to our lineup, adding also bullpen capacity. We wanna congratulate Snit on his 500th career win after defeating the Phillies last week. We encourage you to tune in to the Mets tonight. We have nothing to report today on LMAC, but we do continue to review opportunities and look at the environment. It was difficult for SPACs as an opportunity for us. With that, I'll turn it over to Brian for more on our financial results.
Thanks, Greg, and good morning, everyone. At quarter end, Liberty SiriusXM Group had attributed cash, liquid investments, and liquid public debt and equity securities of approximately $368 million, which excludes $126 million of cash held directly at SiriusXM. There's also $1.3 billion of undrawn margin loan capacity at the parent level related to our SiriusXM and Live Nation margin loans. As of August 4, the value of our SiriusXM stock held at Liberty SiriusXM Group was $21.5 billion, and the value of the Live Nation stock was $6.8 billion. We have $2.8 billion in principal amount of debt against these holdings. Total Liberty SiriusXM Group attributed principal amount of debt is $13.7 billion, which includes $10 billion of debt at SiriusXM.
Formula One Group had attributable cash, liquid investments, and monetizable public holdings of $1.1 billion at quarter end, which excludes $935 million of cash held directly at Formula One. Total Formula One Group attributable principal amount of debt was $3.2 billion, which includes the $2.9 billion of debt at Formula One, leaving $306 million at the corporate level. During the quarter, we repurchased $146 million face value of 1% FWONA cash convertible notes due in 2023 for approximately $240 million. Effectively retiring 2.95 million underlying FWONA shares at an average price of $59.88.
F1's $500 million revolver is undrawn, and Formula One leverage at the end of the quarter was three times. As we discussed last quarter, under the current Concorde Agreement, team payments now take the form of an entirely variable prize fund, which is calculated with reference to a measure of F1's adjusted EBIT rather than the adjusted EBITDA measure used in previous agreements, such that the calculation now takes into account CapEx incurred by including depreciation costs. There is an immaterial difference today between Formula One's adjusted EBIT and adjusted EBITDA for purposes of this calculation. Note that our reported F1 depreciation in amort includes purchase accounting amortization related to the acquisition that is excluded for purposes of the prize fund calculations. We've quantified this purchase accounting amortization in our earnings release to assist in calculations.
Also at Formula One, other F1 revenue is running materially higher than the prior year of about $80 million in the second quarter and $130 million year to date compared to 2021. Increased freight and hospitality income accounts for 98% of the quarter-over-quarter increase. Note that the Paddock Club didn't run until July of last year, while year to date through the second quarter, F1 has welcomed over 35,000 guests at the seven events where we've ran our Paddock Club. Other cost of F1 revenue is higher primarily due to the same factors. These costs are up $76 million in the second quarter, approximately 75% of which is due to freight and hospitality cost variances. Finally, at F1, at last year's Investor Day, we included an appendix slide detailing F1's foreign exchange exposure.
These percentages are still accurate, with approximately 80% of F1's revenue and cost denominated in US dollars. Finally, at the Braves Group at quarter end, they had attributed cash and liquid investments of $207 million, which excludes $66 million of restricted cash. Braves Group had attributed principal amount of debt, $602 million. The Atlanta Braves also announced several new construction projects for 2022. A new office building will be constructed known as Five Ballpark Center that will house the national headquarters for Truist Securities under a 15-year lease. Construction is expected to begin in the second half of 2022. The Braves estimate their cash contribution will be approximately $20 million. The Braves are also working on a new project with Goldenrod Development Company called The Henry, a luxury apartment building.
If completed, the Braves would have a minority equity stake in exchange for two acres of contributed land with no additional cash contribution from the Braves. Additionally, the Braves are evaluating a phase two project of Goldenrod to build an adjacent hotel and condominium complex. This is still in the evaluation phase, but would be another minority investment with a modest cash investment. Our real estate projects have individually and collectively performed ahead of our expectations. The Battery is generating healthy cash flow, which is partially used to support the operations of and future investments in The Battery, and partially to support Braves baseball. Liberty and our consolidated subsidiaries are in compliance with their debt covenants at quarter end. With that, I'll turn it over to Stefano to discuss Formula One.
Thanks, Brian. For the last earnings calls, we were in Miami for the inaugural Miami Grand Prix. It was an incredible weekend as Formula One was welcomed to the city with open arms. The celebrities came out in full force, and much of the coverage had helped to solidify the establishment of Formula One in the U.S. It was wonderful to see so many of you in person. We are now over halfway through the 2022 race season, and we have seen unpredictable outcomes and a lot of wheel-to-wheel racing, especially in the midfield. It is a testament to the new regulation that every team has scored points already this season. Carlos Sainz secured his first F1 career race win at Silverstone, and Lewis Hamilton marked his 300th race start with a second-place finish and first double podium of the season for Mercedes in France.
Up front, Max Verstappen currently leads the Drivers' Championship over Charles Leclerc, but Ferrari has shown incredible speed and the battle between these two is intense. We have seen a fight between McLaren and Alpine, and it is great to see Haas beginning to move forward, currently in seventh in the Constructors' Championship. As we said, Mercedes continues to fight back with Lewis and George on podium again. This action on the track has drawn in the fans with sold-out crowds at our events with the 420,000 at Melbourne, 400,000 at Silverstone, 300,000 in Austria, 300,000 in Hungary, and 338,000 for Canada. The Paddock Club has experienced record sales, welcoming over 35,000 people across nine events this year, including record-breaking attendance at Silverstone, where we had 7,500 guests.
The TV audience is also tuning in with the average audience per Grand Prix through the France up to 9% versus 2001 season average. We continue to see tremendous growth on all platforms. We were thrilled to announce that the highly popular Netflix series, Drive to Survive, has been renewed for the fifth and sixth season. The series is still attracting new fans, and Season Four broke into the weekly Top Ten in 56 countries. Building on demands for our media rights, we reached a renewal agreement with Bandeirantes in Brazil throughout 2025, which will cover all qualifying sessions and Grands Prix on live, free-to-air basis. Additionally, we secured a strategic partnership with Claro Brasil to be the exclusive distributor of F1 TV Pro in the country. F1 TV Pro has proven to be a compelling product for our fans, so it's worth a brief overview.
F1 TV Pro offers coverage of every F1 race session live on demand, as well as live access to all 20 onboard driver cameras and team radio channels, session replays and highlights, live streaming of every F2, F3, and Porsche Supercup session, and a library spanning over 2,000 hours of archives and feature programming. The platform was revamped in 2021 and is now more accessible than ever before, with the release of the service across major big screen platforms, enhancing the viewing experience for Formula One fans around the world. On to the racing promotion side, we were pleased to reach a long-term agreement with Melbourne that will have us racing there through 2035. This new agreement will bring F2 and F3 to the track for the first time ever.
We were also thrilled to announce Honda as the title sponsor of the Japanese Grand Prix when we return to Japan in October. We are focused on the calendar for 2023 and expect to have more details around early October. On the sponsorship front, we announced Patrón Tequila as the first ever official tequila partner of the F1 Paddock Club. We also focused on licensing opportunity and partnered with Round Room Studios for the first official exhibition in Formula One history. Details, including venues and the sale dates for tickets, will be announced this fall. We also extended our agreement with the Memento Group through the 2025 season. This already cover authentic, certified, and licensed F1 memorabilia and now includes the right to sell ex-F1 race and show cars.
The recently completed auction for the 1990 Leyton House CG901, which placed second in the French Grand Prix, sold for over GBP 500,000. We continue to push to hit our net zero carbon by 2030 target. F1 is developing 100% sustainable fuel that will be used in Formula One cars from 2026. In line with the introduction of the next generation hybrid engine. The fuel is purposely designed to drop in for both internal combustion engine and hybrids. It is already in development with support from our key stakeholders, the FIA, Aramco, and from the F1 Global Partners, fuel providers, and F1 teams and manufacturer. While racing fuel represents only 0.7% of our emission, we believe sustainable fuels is where we can have a greatest impact on the global transportation sector.
While we have already instituted significant changes to create a more sustainable sport, we are now focusing on the following areas. Exploring carbon reduction measure for fans traveling to Formula One events, sharing the carbon reduction activities from across our sporting community, taking steps and continuing to investigate our measures to deliver more efficient logistics and travel arrangements from air, sea and land. Furthering our commitment to the environment, we are partnered with Banco Santander to amplify the Santander X Global Challenge, Countdown to Zero, a competition that challenges entrepreneurs to create sustainable solution for the future. We continue to promote diversity in Esports and hosted the F1 Esports Women's Wildcard Experience Day at the McLaren Technology Center. First launched in 2021, the Women's Wildcard represent another route into F1 Esports for female participants.
The initiative was born from the desire to create a space that encouraged more females to take part and submit their time trials via the official F1 video games, with a winner securing a spot in the F1 Esports Pro Exhibition for the chance to be selected by a team for the Pro Championship later this year. We also announced earlier in the year our extended funding commitment to the Formula 1 Engineering Scholarship Programme for underrepresented group until 2025, continuing its strive to increase diversity within the sport. We hope everyone has enjoyed the first part of the season. While the teams and the drivers enjoy a much deserved break, we will continue to capitalize on the growing popularity of F1 and convert this into opportunities to drive the business forward. Avanti tutta. Full speed ahead.
Now I will turn the call back over to Greg. Thank you. Bye-bye. Ciao.
Thank you, Brian and Stefano. Our annual investor day will be Thursday, November seventeenth in New York. Please save the date. Additional details will be provided soon. We hope to see many of you there. We appreciate your continued support of and interest in Liberty Media. With that operator, I'd like to open the line for questions.
Thank you. If you'd like to ask a question today, please signal by pressing star one on your telephone keypad. If you're joining us using a speaker phone, please release the mute feature from your phone to allow your signal to reach our equipment. Once again, that's star one if you'd like to ask a question today. We'll turn first to Ben Swinburne with Morgan Stanley.
Thank you. Good morning. Greg, a couple things on the structural side I wanted to ask you about. You mentioned separating Live Nation. I think you mentioned in that context with Sirius. Can you just talk about sort of the pros and cons?
Ben, just to be crisp, I said highlight the value. I didn't say separate, but go ahead.
Yeah, I guess my question was sort of how do you highlight the value? I'll let you
Answer that as you see fit. You know, we get the question quite a bit, I'm sure you do too, about the hard spin of the Braves. I was curious if you could just comment on kind of the puts and takes and pros and cons to that thought process. I wanted to ask you and Stefano, whoever wants to take it on Vegas. What are you guys doing second half of this year in terms of both staffing up and on the CapEx side with the track and the Paddock Club? Any way to help frame sort of the investment size here as we look into the back half of the year as you get ready for next year's race? Thanks.
You know, I'll try and answer the structural questions and then touch on Vegas and one of the others as well. On the structural side, look, we're not here to announce the end of the day. You'll know when we do. You know, the advantages of our structure have been with the trackers have allowed us to have flexibility to move assets around, have allowed us to have flexibility to align things in the most attractive way to manage our taxes in the most efficient manner. There are reasons to wanna keep things together until we have ATD flexibility around all of them. That's just more optionality.
As far as how we might highlight, you know, value, there are ways from spinning to creating another tracker to other kinds of actions we could take. We haven't, obviously, decided any of those, it wouldn't be an announcement today. The history of Liberty is, we've tended to, over time, take these businesses to where we thought they were, where we could add value, keep them internally, and then at some point, spin them out. We thought that they would be more attractive as independent entities for the long term, not just in the short term. You know, we'll monitor all that for all of our entities. Obviously, I've given you as much of a non-answer as I can then, but that's just been our history.
I think you should look at our history and say we have taken corporate actions to spin things off, and I went through a few of them, and the subsequent disposition of those companies. On Vegas, it's a little hard to forecast the CapEx because we are still putting together the program that we will undertake there. I mentioned our goal is to have a facility which is not only magnificent for the race, but has the opportunity to have ongoing activations and events at that facility when the race is not underway. You know, I think you should be thinking we can well manage this within the capital we have.
It's not gonna drain us in any way, and it's not gonna forestall us from doing other actions, including, you know, potentially, investments around the SPAC, repurchases, debt management and the like. I don't know if Brian or Renee or Stefano wanna add anything on the Vegas question.
No, totally.
If I can, Greg, just to add on to the fact that, of course, the CapEx builds and the timeline is there just almost 16 months ago. It's important that we are working very hard in driving the engagement and getting the new city excited about Formula One. We're gonna come back in due time with all the plans that we have in order to make sure that we want to bring F1 to life with emotion, passion, that is really important to increase the level of engagement that we expect from Las Vegas.
Thank you, everybody.
Thanks.
We'll take our next question from Bryan Kraft with Deutsche Bank.
Thank you. Good morning. I guess Greg also had a structural question. I guess, you know, in eliminating or narrowing the NAV discount at LSXMA, you know, it sounds like you alluded to a Reverse Morris Trust. I guess another option that you have would be to distribute the SiriusXM shares to Liberty shareholders. The former, though, would, you know, basically make the combined company, though, still a Liberty company with, you know, Liberty, you know, board and management and the ability for Liberty management and board to make strategic investments and acquisitions. You know, the latter would sort of, you know, be an exit from that as a management team.
I guess, are both of those on the table or, you know, do you really wanna kinda still control Sirius and be able to use it strategically? I also want to ask a question on Formula One costs. How should we think about the higher SG&A level this quarter in the context of future quarters? It seems as though there may have been some temporary impacts in there from legal and advisory fees. I guess, is that the right way to think about it? You know, or is that a meaningful or is there kind of a reset in the SG&A run rate going forward? And maybe that has to do something with Vegas. Thanks.
On the first point, I think, Brian, there's a wide range, you know, all the way from distribution of shares, which would be, you know, unless you could figure out some way to get compensated for our control position, probably not optimal. There are things that are halfway in the middle, you know, like as we may remember with Liberty Media, where we spun our DirecTV shares, but we still had in the form of the B-shares having influence to hard spins that are just fully away and or even subsequent spin merges like the GCI example or like effectively what we did in Expedia. There's a. I don't think there's anything off the table. Based on either what we might do there or our history.
I think there's a full range of opportunities, and we'll try and do the one that we think maximizes long-term value. On the side of expenses, I'll let others comment as well, but will note we did have some increased expenses, increased investment to start up around Vegas, including some issues there. As far as the longer term, I think we're not at an elevated level, but I'll let others add their views.
Yeah. This is Brian. I'd say we had some higher personnel and other costs to support the, you know, the large increase in revenues and higher activities that we had in 2022 versus the prior year. There were some minor one-time professional fees that we wouldn't expect to repeat. I would say pretty minor Vegas expenses at this point in time.
Okay. Thank you very much.
We'll turn next to Vijay Jayant with Evercore.
Thanks. On Formula One, obviously, Greg, you know, the equity is liked because there's a contractual nature of the business. Obviously there are numerous macro headwinds with, you know, inflation, higher rates. Obviously, you gave some color on the impact of Forex. With the escalators, can you help us really think about, you know, what the variability of outcomes are given all those, you know, sort of pressures out there, given your contractual nature of the business. Is the budget and expectations pretty much in line with what you sort of expected at, you know, at the beginning of the year kind of thing for what the performance could be at Formula One operation?
I think a couple things. I think you're right to note, Vijay, the highly contracted nature of the business and, which manages downside. Obviously, there's FX downside and there's cost potential downside. But in general, we've seen demand that's been able to outstrip those. And while we made budget conservatively with contingencies, it's our nature, we've been able to outperform those contingencies even in light of the cost structures. I remain. You know, I believe the demand that we have and the strength of business on top of the contracted nature will allow us to power through most of that. But obviously, we can't foresee every inflationary impact. But in general, I think we've been able to work through those and the FX. I don't know if Brian, Stefano, anyone else wants to add.
Nothing that I'd add, Greg.
If I could follow up obviously on the maybe a little early on the race calendar for next year, but there's a bunch of European races that come sort of end of contract. It looks like France, Belgium, Monaco. Obviously you have a couple of new races next year coming. You know, Qatar coming back and Shanghai coming back. Can you just talk about, you know, what the sort of race outlook can be next year? Are we obviously gonna have more than 22 races, and are we gonna get more sort of higher dollar value races versus, you know, some that are not as lucrative?
I'll let-
If I may, Greg.
You go first, Stefano. Please.
Okay. Thank you, Greg. I mean, as I've stated before, you know, we will come back to the early October due to the process of course having the clearance for the World Motor Sport Council of our calendar. Of course, there are discussion to make sure that the calendar is robust. It's following also the fact that we would like to keep the right flow in term of efficiency around the world, considering the needs of a calendar to be spread out from March to November all around the world. Of course, the effect that you were seeing before, the between the on the choice between the European and out of European races has an effect on the revenue side.
I would say the main point is to have an effective calendar. The demand is very high, and it's our responsibility to put in place a calendar that is valuable to our stakeholders, but also valuable to respond to the request that we have all around the world. We cannot say anything more than what we are saying because we are of course finalizing all the details. We for sure expect to have, I would say, a couple of races more than this year, but less than 25, that's for sure.
Thanks so much, guys.
Next up is David Karnovsky with JP Morgan.
Hi. Thank you. For Stefano, you know, we've seen in the press the possibility of some auto OEMs entering F1, either on the manufacturer or engine side. A question we sometimes get is what's the potential benefit to Formula One, either from a commercial standpoint or to the product itself? I wanted to put that question to you. Then separately, with other F1 revenue, I know there's a lot of noise in there because of the freight costs, but wondering if you could speak to the performance outside of the pass-through revenues, in particular areas like Paddock Club or licensing, and maybe how that looks relative to, you know, the pre-pandemic period. Thanks.
Okay. Thank you. I mean, with regard to the new OEM coming in, as you can imagine, you know, it's not for us to say anything that will be, let's say, we shouldn't say. It's true that we are in concert with other manufacturer, and hopefully we have other information soon.
I think that in terms of what is the benefit, the benefit for sure credibility, the benefit is showing that our strategy of the future will help the manufacturer to have another route, that will allow them not to be only fully electric in their offer to the mobility side, but also, using the expertise that only Formula One, through the technology we have, can help them in order to find new way of, being present in the market with hybrid engine, with sustainable fuel, that will be enabled to be much more effective in our opinion, all around the world, if we want to achieve the goal of, carbon neutrality.
On the other hand, from the sporting point of view, the more manufacturer we have, the more structure in term of having manufacturer with other teams will enable, you know, the sporting side to have, I would say more teams that could be seen even more independent into the sport. I think that could be great news. Let's see how the situation will evolve. No matter will be the decision that other OEMs will provide to the market, hopefully very soon, we are strongly believer that our technological platform for the future is the right one in term of relevancy. This is something that facts will prove that.
Going back to the second-
If I could just add, I think.
Yes.
If I could just add on. As Stefano just said, you know, obviously, and Stefano touched on this, it's a great validation to have these OEMs want to enter or reportedly want to enter. The ones discussed are both enormous engines of innovation and enormous engines of promotion. All of those only seem to be good for our sport.
Of course.
Go ahead, Stefano. I didn't mean to interrupt.
No, no. I was just trying to briefly touch base on the second question. We see, and this is what we have already seen, for this year, incredible numbers with regard to Paddock Club, with regard to new license that will be seen as an effect on our balance sheet. We see already an incredible number of orders, despite the calendar has not been announced already in terms of reservation for the races that would be in any case, definitely in the calendar next year. Great attention. That means the attention on our platform is really huge today.
Yeah. Just to add to that, David, you know, in the other F1 category, 98% of what we're seeing on the increase is all coming from Paddock Club and freight, as we talked about in our prepared remarks, where we didn't have races last year and we weren't traveling as much, so big increases there. Within primary revenue, you know, we're seeing increases across the board as Stefano just mentioned. Licensing, to your point, and F1 TV, as well as the main three categories of promotion, sponsorship, media rights.
Thank you.
If you look at some of these things like Paddock Club. Yeah, just to add, Brian. I mean, if you look at these, some of these things like Paddock Club, we've never seen more demand. We've not only seen demand, we've been able to, in some cases, promoters have been able to increase the size of the Paddock Club areas and still manage it at a higher number and higher prices. A lot of positives there.
Thank you.
Barton Crockett with Rosenblatt Securities has our next question.
Hi. Thanks for taking the question. Greg, the discount at Liberty SiriusXM versus SiriusXM is so much larger than the discount you would see at Liberty Broadband and Charter. Why do you think that is? Why is there such a disconnect? Does that inform in any way, you know, what some of the solutions might be for that?
Martin, it's a great question. I think you could argue a little more complexity. You could argue investor fatigue. You could argue the relative scale and size of the two entities compared to a broadband entity. Hard to attribute, you know, any certainty to any of those, but those are probably all factors. You know, fear that we're not gonna act on it in some way, whereas at broadband, it maybe it's more crisp where the future's going. All of those are potential factors. You know, I think as you said, as we said before, and I said earlier on this call, we're gonna take advantage of that through the discount, and at some point we're gonna take an action, and we're looking at those actions to do to tighten that discount.
In the interim, we're gonna buy that stock and take advantage of it and drive our NAV relative to the underlying NAV up. I don't know if anybody else on the team, Ben or somebody else, wanted to add something, but I think it's hard to be determinative about which of these factors is driving the difference.
Okay. If I could ask one other kind of separate question. I'm just interested.
Sure.
In your perspective on streaming at this point as pertains to kind of baseball. You know, we have the direct-to-consumer launches at NESN and at Diamond Sports. The Braves are not participating at this point. You know, there's been some roll-up of rights at some of the big platform players like Apple. Do you think that this is the time, you know, to move in and restructure the streaming rights for baseball? Or do you think it's not right yet, you don't know what to do yet?
Well, I think baseball has a more complicated situation because of all the regional sports network situation than other sports in particular, you know, the cleanest comparisons or the completeness is football. You know, certainly my understanding is MLB would love to find a structure where they could deliver more national rights, which is really not available or difficult today on some kinds of games. The streaming interest has been high from people like Apple, which is a good sign. Obviously the RSN weakness is going to create an opportunity. Whether that happens this year or next, I do think there will be some change in that, given where Diamond appears to be headed. Looking just at the Braves, we're blessed, as we've said before, with a lot of demand and good audience in our territory.
We're also blessed with the largest broadband household territory among baseball teams. We remain optimistic about our relative position on any kind of streaming deal. We feel good that, you know, we have a product which people want in a big territory and probably what some people estimate may be the most profitable RSN, where we're getting paid pretty well, but the RSN owner is also making money. That seems to create some opportunity where there'll be somebody who wants to do something interesting in our space. Stay tuned. Yeah. Thank you. Thank you.
We'll now move to David Joyce with Barclays.
Thank you. I guess some more clarifications on the structural opportunities. Greg, I think you mentioned in response to Ben's question something about, you know, the reasons to keep things together until you have full ATB flexibility. Maybe I misheard or misunderstood, but you know, I thought that everything was. I was just wondering what restrictions there still are.
No, I think we are, if I could just interrupt, David. I said that's one of the factors. We love to have as much flexibility on ATBs as possible and as many. That's a factor. That's not the only reason. I think I mentioned to keep the corpus together or to keep things, as I mentioned, some of the other reasons around ability to move assets, tax advantage, tax flexibility, et cetera. Sorry, go ahead. I didn't, just wanted to set, before you ask the question, I wanna make clear that's not.
No, that's fine. That clarification is what was part of my question. Then the other aspect is, are there any other further gating factors on the, you know, separation of the equities, such as, you know, do you need to prioritize getting something done with LMAC, the SPAC, or is that completely, you know, separate path?
Yeah, I don't know off the top of my head, but you know, I'll just note the one you called out. I don't think anything we're going to do around LMAC, the SPAC, is likely to be impacted by structural changes because, you know, it's generally getting funded by the excess cash, and any incremental would be funded by the other further excess cash at Formula One. I don't think that's the driver.
Okay. Appreciate it. Thank you.
Thank you.
Next up is Jason Bazinet with Citi.
I just had a high level question. You guys over the years have done such a good job improving the financials of the Braves and Formula One. I would just be curious, as you sort of look at the landscape, would you describe both of those as sort of one-off, you know, rare exceptions, unique opportunities? Or do you think you're sort of building a competency that might be applicable to other potential assets based on your experiences?
Yeah, I don't know if we have a competency. I'd like to think that credit to the teams at both the Braves and Formula One for what they've done with those assets. I think they've taken attractive businesses and only made them better. I credit that. If we deserve any credits for finding the right management teams and backing them and doing the great work that they've done, I'm not sure we can take much beyond that.
Okay. Thank you.
Now we'll move to Matthew Harrigan with Benchmark.
Oh, thank you. Firstly, getting more specific on the synfuels ventures. There's a report in the European media that Porsche has something down in Chile that they're testing that's basically carbon capture synthetic, you know, methanol. The story also alluded to Saudi Aramco building plants in Saudi Arabia and Spain. You know, I guess you probably wouldn't be that specific, but have you nailed down a path on the technology, or are you looking at a lot of different things? And what sort of capital commitment, just vaguely, would go into having that sort of plant? Because this sounds a little more real as well as aspirational at this point.
Then secondly, on the venture that Ticketmaster did with Snapchat and now with TikTok, is that something that you really see, you know, pushing the event demand as well as, you know, people's propensity just to get outside the house right now? I have one super quick follow-up, if you don't mind.
Stefano, do you want to take the synthetic fuel question?
Yeah. Thank you. Thank you, Greg. Thank you, Matthew. I think that, you know, all these technology, capital capture and other things that are related to the path of technology is related to the transition in this sector that we are living. The beauty of what I believe we are doing with tremendous effectiveness is the fact that, you know, we are just pushing the system towards the future in the right way. All the commitment that we have taken on our side to go to zero carbon fuel in such a short term is because we do believe that that's the right way to go. The good news is that on the other side, the investment on our side is not relevant because we don't own any CapEx in that respect.
We are just the enabler to all the stakeholders of our business to push for the future. This is something we do believe is the right way to go. We don't have to forget one other important element of the equation, that we are not talking only about the manufacturers that are part of our teams, but with our system, we have promoters. We have a lot of people that have to invest a lot, because when we are talking about big events, we're talking places where the needs of energy for hosting a Grand Prix, where there are more than 400,000 people needs to have a path of evolution of this technology. This is also where we are pushing the system to improve it toward this direction.
I think we should be very, very proud of this idea of pushing forward this technology to our leadership on that respect.
Matthew, on the second point, I'm not sure exactly what you're referring to. Maybe you could help.
Yeah.
Repeat the question.
I know sometimes you're hesitant to comment on the operating companies, but they did an arrangement with Snapchat a number of months ago to push basically Ticketmaster pushing tickets on Snapchat. Just a couple of days ago, they announced something really similar with TikTok. Is that something that you really see as being a nice impetus for demand on the ticketing side? Or do you think it's just people are stir-crazy after COVID and they just wanna get outside the house?
Well, I think, you know, it's part of Live Nation's strategy to be ubiquitous as possible and making buying tickets as simple as possible. You know, the technologies they've developed to distribute their ticket buying capabilities are a unique advantage, I think, compared to most in the industry. They wanna be where buyers are. If buyers are on TikTok, which they increasingly are, and looking for music, and that's a place where they originate, it's a logical place for them to be. The same thing I think about Snap, which has obviously had music aspirations as well. I think it's, you know, an important element of continuing to grow the strategy, but I'm not sure it's uniquely different than anything else we've done. It's just a continuation.
Lastly, if you don't mind, do you have a secular view on sports teams valuations going up even higher that makes you wanna wait further with the Braves in terms of doing something?
You know, I think it's facts and circumstances will dictate. Obviously these have been trophy assets that people have wanted to buy the best of. We've certainly looked at purchasing, in lots of cases, other sports assets and been surprised at some of the prices. Nonetheless, they continue to move upwards. I think for the right kind of trophy assets, the valuations are gonna continue to rise.
Thanks, Greg.
Thank you.
With that, we'll conclude.
That was great.
Today's question and answer session. Now, if not in the conference.
Great.
Back over to the speakers for any additional remarks.
No, I just wanna say thank you to all our listening audience for your questions and your attention. We appreciate your interest in Liberty Media. Hope to see you next quarter, if not sooner, and again, at our November meeting for many of you. Have a great rest of your summer. Thank you.
Thank you. Bye-bye.
With that, we'll conclude today's conference. Thank you everyone for your participation. You may now disconnect.