Earnings Call: Q2 2021

Aug 6, 2021

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Media Corporation 2021 Q2 Earnings Call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session. As a reminder, this conference is being recorded August 6. I would now like to turn the conference over to Courtnee Chun, 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 Forms 10 ks and 10 Q or Liberty Media Acquisitions Form S-one registration statement filed with the SEC. These forward looking statements speak only as of the date of this call, and Liberty Media and Liberty Media Acquisition expressly disclaim any obligation To disseminate any updates or revisions to any forward looking statement contained herein to reflect any change in Liberty Media or Liberty Media Acquisition Corporation's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements may. On today's The required definitions and reconciliations for Liberty Media and SiriusXM Schedules 1 through 3 can be found at the end of the earnings press release issued today, which is available on Liberty Media's website. Now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO. Thank you, Courtney, and good morning to all of you. Today, speaking on the call, we will also have Formula 1's President, Dio Stefano Domenicali and Liberty's Chief Accounting and Principal Financial Officer, Brian Wendling. So beginning with Liberty SiriusXM, we continue to repurchase shares, purchasing $141,000,000 across And the K shares from May through July. The discount remains and we therefore repurchased at a look through price on SIRIA of just Over $4 per share. We continue to take advantage of the discount opportunity, and I We will continue to do it going forward and our ownership of SiriusXM is 78.1% as of July 23. Looking now at Sirius itself, they had an outstanding results for the quarter, another beaten raise with record low churn at 1.5%. EBITDA also set a new quarterly record and new car penetration increased to 82%. We have a continued focus on growing the already strong presence in the car. There are 140,000,000 vehicles on the road today, which are enabled for And the 360L enhanced feature set will continue to evolve based on data received from users. We're also growing engagement outside of the car and the rebranded SXM app is gaining traction. With all these combined platforms and capabilities, we believe SiriusXM presents a compelling comprehensive offering for talent, media and social brands to create and monetize So turning to Live Nation. The reopening accelerated, led by Outdoor concerts in the U. S. And the U. K. With other countries coming along as vaccination levels increase. Festivals and amphitheaters are the focus for the summer led by Lollapalooza, Rolling Loud, Hip Hop Festival in Miami, Latitude in the UK. Between them, they all had 700 and 50,000 fans, which is back to pre COVID levels. Live Nation is helping to put on the New York reopening concert in Central Park on August 21st. And VeePS, our streaming service, continues to be incremental Live revenue stream for us with Bob the Bob Dylan show later this month. Live expects all segments to return to AOI profitability in the second half of And all signs continue to point to a great 2022, and we expect 2022 activity and financial results will exceed Turning now to the Formula 1 Group. There was phenomenal racing The first half of the season up until the summer break was a fierce battle between Lewis and Max. Among the rest of the drivers, There is a tight competition for 3rd and the Constructors' Championship is also highly competitive with Mercedes and Red Bull going wheel to wheel and McLaren and Ferrari battling for the 3rd spot. We remain impressed with the way Formula 1 We have made changes to the 2021 calendar, but we continue to move forward. And the Formula One team continues to plan for the known and unknown variables that come at them. We did welcome a full crowd at Silverstone, 356,000 fans over the weekend, which was tremendous and we remain confident in our ability to have a full 'twenty three race season. We also had our And if you haven't already, I encourage you to tune into the Business Breakdowns podcast with Stefano, Ray is quite articulate about the future of the business. The link to it is on our IR homepage. The Braves, Baseball fans nationwide, but particularly in Atlanta and here in certain parts of Colorado, were devastated to see Acuna end his season Early, we do wish him a speedy recovery. The team has been battling despite setbacks. We had an impressive comeback last night to sweep The Cardinals and the Braves are now over 500. At Truist Park fans are back in a big way. We expanded to capacity Of 100% in early May, baseball revenue per home game is up in the Q2 compared to 2021 despite only partial Ticket sales, concessions and retails per caps are all trending very favorably. We are having trouble Keeping jerseys in stock, high quality promos. With the Braves dual lead, Major League Baseball in total attendance at over 1.5 And average attendance at over 29,000 per game. With our financial strength, we are reinvesting In on field talent before the trade deadline, you saw us do that rather. And at the Battery, development revenue continues up in the quarter due to rental income from new And the end of COVID related modified rents. You'll also see the Phase 2 office tower. We are confident it will be fully leased in the near term and Thyssenkrupp will move into their new headquarters later this month. Finally, we continue to make good progress on LMAC, the SPAC. We think the trends in the SPAC market, which are Challenging for many actually plays the benefit of Liberty. With that, I will turn it over to Brian for more on our financial results. Thank you, Greg, and good morning, everyone. Liberty SiriusXM Group had attributed cash, restricted cash and liquid investments approximately $418,000,000 excluding $1,100,000,000 of cash and restricted cash held at SiriusXM. We also have $1,100,000,000 of undrawn margin loan capacity at the parent level related to our Siri and Live Nation margin loan. Note that a portion of our cash will be used later in 2021 to repay our 2.25 percent Live Nation exchangeable bond. Based on the fair value of the liability at quarter end, the amount of cash used would be $517,000,000 As of August 5th, the value of our SiriusXM stock held at Liberty SiriusXM Group was over $20,000,000,000 and the value of the Live Nation stake was nearly $6,000,000,000 We We have $3,200,000,000 in principal amount of debt against these holdings. Total Liberty SiriusXM Group attributed principal amount of debt is $14,100,000,000 which The $9,900,000,000 of debt that's held directly at SiriusXM. Formula 1 Group had attributed cash and liquid investments of $1,700,000,000 at quarter end, excludes $537,000,000 of cash held directly at F1. The corporate cash balance includes $384,000,000 that was received from LSXM in Q2 related to settling out the call spread. Total Formula 1 Group The principal amount of debt was $3,400,000,000 which includes $2,900,000,000 of debt at F1, leaving $546,000,000 at the corporate level. F1's $500,000,000 revolver remains undrawn. While we are still in the period of a covenant waiver at F1, target leverage for the business remains Please note that during the 3 months ended March 31, 2021, F1 began reclassifying certain components previously reported and other revenue in the primary F1 revenue to better align with the way it currently evaluates the business. Components reclassified in the primary F1 revenue include F1 TV subscriptions, F2 and F3 related fees, broadcast origination and support fees and digital Additional detail, including the impact of the revenue reclassification for the years ended December 31, 'nineteen 'twenty, can be found in Schedule 3 of our earnings release posted to our website. Lastly, to the Braves. At quarter end, the Braves had attributed cash, liquid investments and restricted cash of 231 And attributed principal amount of debt is $694 Liberty and our consolidated subsidiaries are in compliance with their debt covenants at quarter end. And with that, I'll turn it over to Stefano to discuss Formula 1. Thank you, Brian. The 2021 season is exceeding expectation across the board. Each weekend on the track brings drama and the unexpected. The Engaren GP did not disappoint as Hong Kong playing its maiden victory and Opiant's first as the newly branded team. And I was impressed With this expertise holding off, I think, for numerous labs. The rivalry between Lewis and AXA continues to build in their high 20s for the championship, which culminated with the Institute of Silverson and with the unpredictable outcome on Sunday, Amintos and Mercedes entered the summer break slightly ahead in the standard And the battle for the 30th hike between Nautilus, Bulkers and Tejas. The context among the infrastructure It's just an excuse between Vazalore and Mercedes for 1st and McLaren and Ferrari for 3rd. 4:11 is leading up to the promise and the fans are responding. We have a full crowd of Silverstone, posting 356,000 Over the weekend, with 140,000 in time, this sort of attendance is a rivaled in the sport. Attendance was certainly aided by the tight battle for the championship, the inaugural F1 Sprint event that produced companion racing and the return of the Pado Club. On the Sprint, the first of 3 events this season, we have received overwhelmingly positive feedback from the teams, Drivers and sales, and certainly this provides additional opportunities for our promoter, media and sponsor partners. We will continue to discuss any lessons learned from the format with the teams, but the fundamentals are strong. We believe this can be expanded in 2022 and look forward to the next sprinting mode. Fans Engaging across all platforms. We have data through to the British Grand Prix. And on the digital front, Unique users for the F1 website and app this season are up over 80% compared to 2010. Social engagement continues to grow, reaching over 40,000,000 social interactions for the British government. And we've seen this growth reflected In our total number of those following F1 on social media, which now stands at almost 42,000,000, TV audiences are tuning in, and we have seen strong growth over 20202029 in many markets, Notably, France, the Netherlands, Norway, Spain, Sweden and the United States. F1 TV remains a great way for fans to catch all the action Of the race weekend, peak concurrent views for race days have consistently been more than 2.55 higher 20 20 season average with minutes due, overall race weekend also up by more than 2.5 times versus last season. We are now on lever basis into our planned 'twenty three racing season. This time last year, we have only completed 4. 2021 has presented some of the same challenges as 2020, along with some new ones. I'm proud of our team and our partners as we continue to navigate the landscape. On our last earnings calls, However, due to travel restrictions related to Turkey, We have to make the pivot again and secure back to back races in Austria by moving the trends from 3 year week early. Ultimately, we were still able to secure As a replacement for the Singapore Grand Prix, all of these changes require great Formula One has demonstrated the ability to manage the logistics of COVID restrictions in multiple countries and has set the gold Through the British Grand Prix, we have conducted 56 1,000 test on drivers, teams and personnel that produced 38 positive cases for a positivity rate of 0.06%. Through this fine tuning operation, we feel confident in our ability to safely deliver a 'twenty three race season. Demand to host 4 of our races persist at all on high as evidenced by venues that were quickly able to fill slot in 2021. And we will still have interest from new venues that are now currently part of the 2020 calendar and existing venues that are open to host in a second race. As different parts of the world are At various stages of emerging from the pandemic, governors view and FRAs as an exciting way to return to the public stage And welcome, Bristol Bank. We have made tremendous progress in 2021 in sponsorship, and the momentum has continued since our last earnings call in May. Crypto.com joined as a global partner and inaugural partners of the F1 screen studios and will become the official cryptocurrency Sponsor, NSE, Hardinova F1. They will present a brand new award that will be announced ahead of the Belgian Rugby. We have also welcomed BWP as the title sponsor of the Austrian doubleheader and last week announced that they will become F1's official water technology partner, Working with F1 to deliver a single use flash free handle by 2025. Workday Sign on the regional finance and HR enterprise partner of F1 across the UK and Germany. Finally, we completed a multiyear extension of our finance Steve covered in e commerce and manufacturing, following outstanding performance on our F1 online stores. Sales on the official online F1 store grew by more than 40% in 2020 and accelerated to triple digit growth Through the 1st 6 months of 2021, the U. S. Market is the largest in terms of sales on the F1 side, highlighting the increased relevance of the sport in the country. Concerning our goal to expand our reach, We announced that 2:1 car deliveries for all 10 F1 teams will feature in the video game Rocket League's latest fan pack, Beginning the multi year partnership. We are right on halfway through the 2021 season. Our planning for 2022 has been ongoing for some time. As mentioned before, there is a high demand for venues to make 2022 calendar, and we hope to announce the provisional calendar in September, October. We can confirm that the much anticipated Miami Grand Prix will happen in the first half of May. Demand for this ticket is high, Even though sales have not officially started, we also look forward to our move to St. Petersburg for the Russian growth, we beginning in 2073. This iconic city will provide a stunning backdrop for Formula 1. We have previously discussed The foundation that we have put in place over the last few years with cost cap, regulation and the new Concorde agreement, We have created a sustainable and a flourishing ecosystem for this quarter. This, along with the compelling products On the track has created interest and opportunities across the board. This includes ongoing discussion at the highest level with edge manufacturers We see the brand value in Formula 1 as well as opportunities for the new engine and development of sustainable fuels. Along these lines, we continue to develop programs under Formula 1's Re Erasers 1 initiatives. For the British Gulf 3, we delivered a carbon neutral broadband. We plan to take these learnings as we work towards our goals for ensuring all F1 events are sustainable by 20 25 and on our way to become net 0 carbon by 2,030. We have also seen great interest from OEMs in our plans For the next Formula 1 engine to be 100% sustainable fuel and those positive discussions are continuing. For our focus To increase diversity and inclusion across 2 of month, we have recently announced commitments relating to 10 engineering scholarships for underrepresented groups and apprentice and internship programs within the F1 organization. We believe that as a truly global We can make a difference by ensuring that we are diverse and inclusive in our own community as the communities we serve around the world. We thank Change for its general donation to fund these partnerships. As we head into August break, I want to thank everyone at TORMONE, including all of our drivers, teams and business partners for their dedication and hard work so far this season. Enjoy some months of the time off, and we look forward to resuming a briefing in August 29. Avanti Tulte will speed ahead. And now, I will turn the call back over to Greg. Thank you so much. Bye bye. Ciao, Stefano, and thank you Stefano and Brian, in very exciting news, our Investor Meeting will be held on Thursday, August 18th. The full experience will be offered in person at the New York Time Center and virtually. Please save the date. Additional details will be provided All right. And our first question will come from Ben Swinburne with Morgan Stanley. Please go ahead. Hey, good morning, everybody. Greg, just to clarify, is it August 18th or November 18th? November 18th. Did I say August? You did, yes, which I thought you meant November. So thanks for clarifying and yes, exciting for in person. Two actual questions, if I could. Greg, just looking at the discounts, Liberty Broadband, I know this isn't a Liberty Broadband call, but I think it's relevant for Liberty Siri. That discount has not improved, it's probably widened even, since that buyback kicked into substantial levels. And I'm just wondering what you take from that as we think about the opportunity to sort of go after the discount that Liberty Sirius since you're going to, in theory, have access to a lot more capital at some point over the next quarter or 2. And then you guys commented in the release about Formula 1 TV contributing to revenue growth. I feel That product went from something we were really focused on as a business to sort of fading. And now I'm sort of wondering, Given COVID and just the popularity of the sport increasing, what's the vision there? Is that something that you guys are investing more in? Do you see that as a Big revenue opportunity or is it more of an enhancer of kind of the core rights and maybe a driver of engagement? Just maybe you can update us on how you're thinking about the OTT Sure. Thank you, Ben. First, on the discounts. Well, I happen to be well aware, since we have a Liberty Project call, what's going on there. And we actually, During the quarter, for example, Charter was up about 15% and our NAV per share of Liberty Broadband Up Charter was up about 17%, because we were able to buy as much as we were able to buy this year at a discount. We are actually driving the NAV of Charter excuse me, of LBRD up substantially faster than Charter itself. So look, I think it will have its desired result. Good things come to those who wait. We are not necessarily hoping or suggesting everyone's We believe this will ultimately pay to our benefit and we can already see those results mathematically in terms of what's happened to the NAV share of LBRD compared to the underlying charter. So I think we'll go at it. And as you point out, we're going to have more capital, we expect, In the coming months, and we'll see how it responds. On the vision for F1 TV, I think it has evolved. I'll let Stefano comment as well. But I think just the sheer heft The amount of content we have caused us to think about whether that was going to be a meaningful way to connect with our customers or an Enhance way, I. E. Would it be the primary way or an enhanced way? And I think it still is going to be an enhanced way. And how much of it becomes incremental revenue, how much of it becomes a way To join with our customers, that will evolve, but it's you've seen what's happened, for example, with WWE going into Peacock and obviously the scale of content base Much higher than us, I think it's very difficult for a point service to think you're going to replace what we have currently with scaled aggregated services, Whether those are linear or whether those are scaled aggregated digital services. So one way or another, I think that is Those are going to be the primary way we get paid, but we will find other ways to add value and revenue Sorry, I hope I didn't steal your thunder there, Stefano. No, Greg. I think that you are Perfectly spot on. And I think, Ben, if I may add on what Gregor said, is F1 TV has a huge potential to make sure that we can enhance the experience with more and more content to our customer. And we are exploring projects together with our promoters to give real and live content we can offer In a special provision to the ones that attended to the events and then extended the appetite of having unique content for Indeed in our platform In order to grow that experience because that's really an incremental way of adding more and more appetite and content with people that are in level 4/1. On the TV rights, generally talking, I mean, we have the privilege of many of our major deals have been Already completed. And so we are in a situation where we can really see the evolution of the TV rights because this is something that is not uniform and from region to region and the OTT development will for sure have a big hit in the future. So we are in a prudent position of having the biggest concert Really ready on and then having the chance to exploit what we are producing today in order to be ready at the right time And up next, we'll take a question from Brian Kraft with Deutsche Bank. Please go ahead. Hi, thanks. Good morning. I have one for Stefano and one for Craig. Craig, curious if there's anything From the infrastructure legislation, it could be an opportunity or risk for Liberty that you're watching, whether it's something And then Stefano, sports betting was one of the opportunities that Chase had identified when he first became CEO. And I'm just wondering if You could give some perspective on that opportunity for Formula 1 going forward and any plans or activity that you have going on in the sports betting area? Thank you. So touching first on the infrastructure bill, I think we're full on LBRD questions in a way that today already in the call. I think there are some opportunities that will arise. Most of them are going to arise at Charter or GCI, and if you look at our businesses, I don't think we're going to see a massive change at Siri, I guess if you think about greater connectivity in general, that's probably a plus for our 360L, but it's on the margin. It's not like a massive opportunity. I think in and of itself, it's just a I think in and of itself it's just a continuation or acceleration of ongoing trends. The rest of the business is Formula 1, the Braves, not as Live Nation, not as obvious to me how the infrastructure bill is helpful. Obviously, at broadband and Charter and GCI, there are both opportunities there in terms of increasing Customer supply of funds to buy broadband, increasing money around broadband, Probably helping us extend some of our broadband footprint, but there are also some threats there where new entrants may be encouraged. So Plus gives and takes in that bill, I would say, from respect for Charter and GCI. Could have been far worse for some of the initial proposals, I think the ones in terms of the threat level are way down from what might have been initially proposed about preferences for fiber over coax, Preferences for overbills, preferences for munis, muni bills, all of those things are muted compared to what might have been. If I may, Brian, on your question with regards to betting, first of all, we do not have to forget that we have already more partner, it's 188 bet that we are working together. But as you know, the area of betting is an area with a lot of issue depending on the region, on the country, And we need to make sure that everything is really clear on that side. For sure, it's a big opportunity that could be explored in the future. So Once again, working in progress to make sure that the next step of our technology will be the right one in terms of dimension opportunity That could be good for our spot. Up next, we'll hear from David Karnovsky with JPMorgan. Please go ahead. Hi. Thank you. On Formula 1, 7.0, can you Discuss in more detail your takeaways on the Sprint race format, both in terms of how you think it was received by the fans, but also by your partners on the race promotion and Television side, I think you mentioned maybe expanding the format next year. Any sense for how many races you could roll this out to? And then maybe one for Greg, you mentioned good progress on LMAX. I know you're somewhat limited in what you can say on this, but is there any more color you can provide on it or your position in Thanks, David, for the question. Well, first of all, when we talk about this print format, The idea was to offer something different in order to make sure that there was something new that we can offer To all the stakeholders in Informal One, we have said that we wanted to do 3 tests. 1 has been done in Silverstone, The other one will be in Monza, and the other one will be at the end of the season in Brazil. At the end of this Complete test, we're going to have a plan and we'll see what will be the next step. What I can already say is that after the first A sprint event in Silverstone, the response that we have both from the drivers, from the teams, the media has been really positive. And also for the promoter because if you think that every day we have something new to say, people coming to the track on Friday, we're really tuned For the first, qualifying already on Friday. So the outcome of the first event has been dramatically positive, if I may say. And it's great because that's brought attention, interest TV and also partners because thanks to that, we have brought in, for example, paper.com. And so we have already seen our financial income as being positive. Therefore, there has been, if I may say, good, good sign, a very, very, very positive sign. And we want to restart what we said. We're going to have a full debriefing, if I may say that, at the end of the season. We have a plan for the Of course, we are developing that. We are fine tuning some of the comments that we received. And what I can say is that if we move, as we should, I do believe so, In that direction, in the future, for sure, there will be enough every race. We have ideas to create a special format for a certain historical Grand Prix And certain special awards that we want to offer and add to the already incredible platform for 1.1. So Very, very positive comments after the first exercise and ready to prepare at the end of the 3 events, A proposal that can bring home what we can see hopefully would be a big step versus a differentiation for Mulan also in a sporting proposition. All right. And moving on, we are taking a question from James Ratcliffe with Evercore ISI. Please go ahead. Thanks. 1 on LSXM and 1 on Formula 1, if I could. First of all, in Formula 1, a couple of recent sponsorship deals, can you just give us an update on how many remaining sort of verticals you think are really available to you and are attractive opportunities? And secondly, on Liberty Formula 1, you brought back excuse me, on Liberty Sirius, you brought $140,000,000 in stock in the quarter, presumably you're going to be able to get the cash flows from Sirius Tax free around about the end of the year. Why not accelerate the buyback now? I mean, you've got $1,000,000,000 in debt A little bit more than that directly in margin loans and the massive value of the Sirius stake. Why not take that buyback activity up to Ramp it up now rather than waiting until you have your ability to get the cash tax free? Thanks. Yes. You want to comment on sponsorship? Thank you, Greg. James, I mean, From my perspective, we have seen already a great momentum this year in the sponsorship growth that is connected to all what we have seen In the championship. But going to your direct question regarding to how many verticals you believe that could be still open in as our global partners, I would say maybe 1 or 2, and maybe the one on which we are working on that is very important for us is the technological provider. That is something related to our possible commercial offer that we want to exploit to upgrade broadband to be available around That's mainly, I would say, the most important one that I think would be important for us to work on. If I could add on sponsorship, I think it's an evolving market and we certainly see new categories in Technology, as Stefano pointed out, is 1. When we bought the business nearly 5 years ago, I don't think we thought about a crypto sponsorship. I don't think that was really on our horizon and now it's a meaningful number. So I think new categories are created, things change. BWT was a team sponsor, now they're one of our sponsors. Things move around. So I'm not sure it's a static Able to answer this many or this number, I think it moves around and there are lots of opportunities still out there. And it's our challenge to go and On the question of LSXM, I think we have been ramping. We do have a plan. We will have more capital that comes in. I think given that the way to support the debt at LSXM is primarily with flows from Sirius recognizing we don't have an operating business there. We've been relatively cautious with margin debt and the like, and we've been relatively constrained in how much So I think you'll see a plan that's probably more aggressive Recognizing what's coming, but those have been some of the constraining factors. And our next question will come from David Joyce with Barclays. Please go ahead. Thank you. Couple of questions. One on Formula 1. I was wondering, given all the fluidity in the race schedule this year, Have the race promotion contracts been renegotiated based On the regulatory allowance of capacity or have they been fixed with the presumption that you still have Yes. You have some arms coming back later, same next year. And kind of secondly on that, would you be to kind of a normal sleep period do you think in Capacity and race promotion revenue level by the Q4. And then a second question on Liberty Sirius. It was Tax related in terms of your options, hypothetically, if you were to sell into a serious Share buyback program, once you're over 80%, would your sales of the stock somehow be tax free or is there any leakage from that? Okay. Thank you, Greg. I think as you said, the fluidity is really the thing that we have to manage this year. And We are heading into the 2nd part of the season where that will be still a topic. The good thing is that it's a situation we have to manage is unique, different because every agreement is different from the one that we have country by country, place by place. I have to say that, of course, the effort is always to make sure that from all the points that we need to manage and, of course, Also on the financial side is to optimize the dimension of it and minimize any negative possibility that we can have. We have agreements where, honestly, the number of attendees doesn't mean anything to us. Some other, we are working together to see And we are working closely with all the promoters and the authorities to make sure that we can really make The right plan for the future, knowing that, as Greg was saying before, the situation is evolving continuously. And the thing that we have to do is to make sure that we are able So we asked in the right way and the things that we can say so far to date that we didn't have any material cash impact on our numbers. I agree with Stefano's comments and obviously we work with our promoter partners To maximize the audience allowable and safely at each race and that will impact the revenues that occur, that will impact Obviously, there is it's a changing market every day. Delta, Lambda, we'll see what happens. We're obviously designed to maximize attendance in the safest way possible. We skipped over one comment about LMAQ and it was we were so excited about Formula 1, I think it's probably what happened. Look, obviously, there's a limited amount I can comment. Our observations about the SPAC market are probably consistent with most of the Investors and analysts on this call, it's gotten a lot harder to raise back money and it's gotten harder to get Combination is done because the pipe market is particularly difficult and the discounts expected from fair trading value are probably widening. All of those have meant that weaker players have Probably been washed out. We know of deals that were proposed at X price that didn't get done at any And I think that trend, I'd like to believe, favors us both because we have a very strong investor group In Elmax, the SPAC, who have expressed willingness to do a pipe with us, but also because unlike many sponsors who are just playing for the Promote, we are putting up at least $250,000,000 into the deal and could put substantially more if we found the right opportunity. And our willingness to in fact be a pipe investor alongside pipe investors, I think, is a comforting thought to many. I have recently been approached by numerous firms about, hey, we'd love to come along with you and partner So I think there's plenty of capital available for us for the right deal. The right deal is likely to involve something where There is more capital required to scale compared to a normal IPO or something like that, and it's probably partly due to a COVID Related recovery or the like. So all of those are speculations about what we'll see. We have seen a lot of those kind of opportunities but have not found them perfectly priced On the question about selling into the buyback, Our tax treatment will vary depending on whether we sell to the company, we currently have no arrangement to do, or whether we sell into the market. And the first would be the latter would be taxable, the former would be tax free. And up next, we'll hear from Jason Bazinet with Citi. Please go ahead. I think this is going to be an easy question for you to answer. But if I just fast forward a bit and we get to the point where There is some sort of equity exchange or takeover between LSXMA and Siri where we get to 1 operating business and 1 security. Is it obvious to you which one of those is the surviving entity? Can you just talk about the pros and cons? Thank you. Jason, no, I don't think it's a known I'm not sure it's an easy question, Jason. I'm not sure it's known. You could imagine scenarios where in effect Siri becomes a Operating subsidiary of Liberty with its own tracking stock or you can imagine scenarios where there was effectively an RMT, reverse Morris Trust where our We're subsequently spun out to our shareholders and Siri became a freely traded company. Both of those are imaginable scenarios certainly. Okay. So no constraints to go either way from your perspective? No. Okay. Thank you. All right. And our last question will come from Matthew Harrigan with Benchmark. Please go ahead. Thank you. Now it's John Pincus at Comscore. I get the default Braves question. Stepping back from the Braves and looking at MLB overall, You've got good new TV contracts to 28, albeit pretty Fox centric and Otani having a lot of appeal even to non baseball Because you have some real issues over a longer period of time with ratings for the sport and the competition in the field. Do you think Manfred and the owners group overall are amenable to barrel and draconian measures like maybe even moving back to pitchers now to get more Exciting into the game. I know that's kind of a 4th question, but it translates to financials over a period of time as well. Thanks. Thank you, Matthew. We remain super excited about the Braves. There are continuous work led by commissions which involve both owners, representatives, MLB representatives and player representatives Look to make the game even more exciting. A lot of that revolves around speed to try and shorten the playing times. Innovations like double headers going to 7 innings at least for this period You've seen innovations around during COVID about starting a tie game, starting runners at 2nd base, things like that. So there are certainly attempts to speed things up. And I'm not convinced moving the pitchers mountain is going to be But all things are open and possible. I think people respect the tradition of the game, but also want to create as much excitement as possible. Thank you to our listening audience and the questioners. We hope to speak with you next quarter, if not sooner, And at our investor meeting in November, if there was any doubt. Thank you very much.