Liberty Media Corp Q1 FY2020 Earnings Call

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Media Corporation 2020 Q1 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we’ll conduct a question-and-answer session. As a reminder, this conference is being recorded, today May 7. I would now like to turn the conference over to Mr. Courtnee Chun Chief Portfolio Officer and Senior Vice President of Investor Relations. Please go ahead, ma'am.

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 our 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 expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's expectations with regard thereto or any change in events conditions or circumstances on which any such statement is placed. On today's call, we will discuss certain non-GAAP financial measures 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 our website. Now, I'd like to turn the call over to Greg Maffei, Liberty's President and CEO.

Thank you and good morning. Today speaking on the call, we will have Formula One's Chairman and CEO Chase Carey; and Liberty's Chief Accounting Officer, Brian Wendling. First let me say, I hope you all are healthy and safe. Second, I'd like to thank and salute our employees and management teams who have done an impressive job managing through this COVID crisis. Now on to Liberty Media. We completed the reattribution of our Live Nation stake and other assets and liabilities between the Formula One Group and Liberty SiriusXM on April 22. We've spoken to many of you since this announcement and obviously we had a conference call right after that. So, I won't go into detail, but I'd like to reiterate why this was a benefit to both equity shareholders. For the Formula One Group, first, it creates a pure play; provided additional liquidity and reduced debt and for Liberty SiriusXM, acquiring Formula One Group's Live Nation interest with the complementary business with us at SiriusXM tracker at a compelling price resulting in ample liquidity. We are pleased with the stock market reaction since. All the stocks have outperformed the ads and fees since we made the announcement. Turning to Liberty SiriusXM, including the LSXM shares that we acquired as part of the reattribution, Liberty SiriusXM repurchased $98 million of stock from February 1 through April 30 and effectively bought the SiriusXM shares at a $3.73 look-through price over this period including the reattributed shares. Our ownership of SiriusXM as of April 24 stood at 72.2%. I'd note that we have stopped our repurchases prior to the reattribution. But I expect, post close of the planned rights offering in early June, we will look to start repurchasing LSXM stock again. The nagging discount to NAV is an opportunity and one we will continue to take advantage of. As SiriusXM continues to repurchase stock and we approach 80% ownership of SiriusXM, I expect the opportunity may wane. Now looking at SiriusXM itself, it continues to operate very well during the COVID crisis. It has launched innovative new program including a 24/7 COVID-19-focused channel on Hotline, nine new limited run channels with iconic artists including the Prince Channel with music and exclusive content like a never-before-heard demo of a conceptual radio show Prince created for the SiriusXM channel back in 2005. Howard Stern has done great and innovative including a two-hour plus session with Tom Brady from Derek Jeter's House in Florida. The subscription-based business model we have at SiriusXM has proved resilient. Self-pay net adds grew 69,000 to nearly 34.8 million total subscribers. And the very strong liquidity and cash flow of SiriusXM has shown through. We still have $1.75 billion of available on our revolving credit facility which has not been drawn. Turning to Formula One Group. I'm sure you have all missed the Dubai F1 racing. Hopefully, you've gotten a little taste by watching or rewatching both seasons of Drive to Survive on Netflix. And we expect all of you watched the Virtual GP this past weekend. There was an epic battle between Alex Albon and Charles Leclerc. They passed and repassed each other several times with Albon finally taking the win. The final results highlighted the next generation of F1 drivers, Albon, Russell, and Leclerc exciting and going to be thrilling next for years to come. The F1 team has done a great job navigating the crisis and working on the 2020 calendar. They are planning an early July start in Austria and Chase will talk more about that. We continue to evaluate the needs of the business, but definitely want to be opportunistic and find synergistic assets that we can add. And we think we are well positioned to do so. Turning to Live Nation. It does not report until after the market today, so I obviously won't comment on results, but I want to say, we are pleased with the announced actions they have taken to build liquidity. And on to the Braves, we are working closely with Major League Baseball to see how we can put a season together. We appreciate how the commissioner teams and players are working together towards that solution. Everyone is eager to see baseball return. The Braves players are eager too. They've been doing Zoom sessions with the trainers, medical staff and manager Brian Snitker. They've also been in celebration of 25 years since the Braves' 1994 World Series title. The '95 players joined a Zoom reunion while watching the final Game six on FOX Sports Southeast. Fans were able to watch the Zoom live on YouTube as well. So with that I'm going to turn it over to Brian for more on our financial results.

Thank you, Greg and good morning everyone. The earnings release has our cash and debt balances by tracker as of March 31. Since we completed the reattribution in April as Greg discussed and repaid the margin of the F1 revolver today, I'll walk through liquidity and debt of Liberty SiriusXM and the Formula One Group as of March 31 on a pro forma basis for these two transactions. Liberty Media, SiriusXM, Formula One, and the Braves are in compliance with all that covenants as of March 31. Given the uncertain impact of COVID-19, F1 and the Braves are monitoring their ability to comply with their debt covenants in future periods and we are in positive discussions with their respective lenders. On a pro forma basis, Liberty SiriusXM Group had attributed cash, restricted cash and liquid investments of $139 million, excluding $52 million of cash and restricted cash held directly at SiriusXM. And we have $870 million of undrawn margin loan capacity at the corporate level. The value of the SiriusXM and Live Nation stock held at Liberty SiriusXM as of May 6 was $21 billion, which excludes the value of the Live Nation call spread held at Formula One Group which was valued at $165 million at the time of the reattribution and will be marked to market quarterly. We have $2.1 billion in principal amount of debt against these holdings. Total Liberty SiriusXM group debt is $11.1 billion, which includes $7.9 billion of debt at SiriusXM. This debt balance excludes the $750 million intergroup loan owed to the Formula One Group, which is expected to be repaid with proceeds from the rights offering which we intend to launch on May 18. Today, F1 will fully repay the balance under its revolving credit facility using cash on hand, restoring its full capacity of $500 million. Pro forma for this repayment, Formula One Group had attributed cash and liquid investments of $1.4 billion at the corporate level. This excludes $536 million of cash held directly at Formula One. Total Formula One Group attributed principal amount of debt was $3.6 billion, which includes $2.9 billion of debt at Formula One leaving $688 million at the parent level. F1's total net-debt-to-covenant-OIBDA ratio as defined in F1's credit facilities for covenant calculations was six times at the end of the quarter as compared to a maximum allowable leverage ratio of 8.25 times for both the term loan and the revolving credit facility. Please note these leverage ratios are for the Formula One operating business not the Formula One Group. The term loan financial covenant is in current space and not maintenance. We are having positive discussions with the RCF lenders under to temporarily move this covenant from an EBITDA based to a liquidity base. Payment of the RCF combined with the reattribution gives us more flexibility in renegotiating the maintenance covenant on the revolver. Lastly, to the Braves. At quarter end the Braves group had attributed cash, liquid investments, and restricted cash of $343 million and attributed principal amount of debt of $698 million. With that, I'll turn it over to Chase to discuss Formula One.

Thank you, Brian. We entered 2019 with great momentum and were ready for our biggest season yet with 22 races. We were ready to race at Australia, but it was necessary to cancel the event at the last minute for reasons related to COVID-19. This global pandemic has had a significant impact on Formula One and we're adjusting and responding in numerous ways that are in the best interests of our fans, employees, partners and constituents, while focusing on the Formula One business for the long term. Let's walk through all the actions we've taken. One of the first actions we took as a support was to move the team's summer break up to March and April as we wanted to have ultimate flexibility to race during the normal summer break in August. On Tuesday the 28th of March, the FIA's World Motor Sport Council approved a further extension of the shutdown period from 35 to 63 days to be taken during the months of March, April, May and/or June. During this break of the season, we were inspired to see several U.K.-based Formula One teams come together for Project Pitlane. This is part of a larger U.K. industry-wide focus to manufacture and deliver respiratory devices to support the national need. Formula One has the unique ability to rapidly respond to engineering and technological challenges and is focused on its core skills of rapid design, prototype manufacture test and skilled assembly. These efforts have proven fruitful and the go-ahead has been given for two of Project Pitlane's initiatives, including ventilators that are being produced by several teams, plus a breathing aid being manufactured by Mercedes. We're grateful for the team's efforts in supporting the national need. In further actions F1 the FIA and all 10 teams unanimously agreed to delay the introduction of the 2021 technical regulations until 2022 and to keep the majority of their existing 2020 cars into the 2021 season. This will reduce costs for all teams at this time when they would usually be investing and working on the cars for the 2021 season. We have further been working with the FIA and teams to strengthen the long-term future of Formula One, with an array of new technical, sporting and financial regulations that will improve the competition and action on the track and make it a healthier business for all involved, particularly as we work through the issues created by COVID-19. One of the key areas of focus has been the cost cap on team expenses. We've previously implemented a cap of $175 million for 2021, but now expect to move forward with a significantly lower cap. Just like our teams, Formula One has been evaluating our cost structure. We made some difficult decisions and furloughed over 50% of our workforce on April 1st, with senior executives taking a voluntary cut in pay. We froze all hiring and pay review plans and also deferred a number of initiatives we planned to pursue this year. We recognize we may lose a bit of time in implementing some of these plans. However, we felt the current uncertainties warranted the actions. As Brian mentioned, we're actively engaged with lenders of our revolving credit facility to address potential issues related to our quarterly leverage covenant. They've been very supportive as we work together to identify potential changes to the covenant to enable us to navigate through the possible scenarios, including the remote possibility of no racing in 2020, and we expect to agree to necessary changes in due course. We've been working tirelessly since Australia and we're actively engaged with our promoters in putting together a potential 2020 race calendar. We have two primary challenges. Identifying locations where we can hold the race and determining how we transport all necessary parties and their equipment to that location for a race. We're in discussion with all of our promoters, as well as some tracks that are not currently on our 2020 calendar, to ensure we explore all options. Our goal is to launch the season on the weekend of July 4th and 5th in Austria. It is likely that we race the weekend of July 11th and 12th in Austria as well. We're in the advanced stages of putting together a schedule of additional European races through early September, including races during the traditional August break. We will then plan to race in Eurasia – in Asia and the Americas in September, October, and November before finishing in the Gulf in Bahrain and Abu Dhabi in December. We hope to have a calendar with 15 to 18 races. We expect the early part of the calendar to be races without fans, but we hope to be able to allow fans to attend in the latter part of the year. We are working with the FIA, local authorities and other experts to determine the steps and procedures necessary to safely transport everyone to each race location and to enable those individuals to operate and be housed in a safe and secure manner. We feel increasingly positive about the number of locations that would be able and want to hold the race this year. Our work in the travel and other logistical issues related to each country is a work in progress. The economics of races, particularly ones with fans will clearly vary from existing agreements and we're actively engaged on this front too. We've been working closely with the FIA with the consent of all the teams to change the calendar without a formal vote amongst the teams and this was formally approved by the World Motor Sport Council and Formula One. This will allow for a streamlined process as we reshuffle the calendar and appreciate the team's support. With the postponement of the season, we are pleased that our teams quickly pivoted and launched a new Formula One Esports Virtual Grand Prix Series featuring a number of current Formula One drivers and celebrities. To date, Charles Leclerc, George Russell, Antonio Giovinazzi, Lando Norris, Alex Albon, Carlos Sainz Jr., Nicholas Latifi have all been on the grid along with former F1 drivers such as Jensen Button, Johnnie Abraham, and Nico Hülkenberg. They've been joined by England's Cricket World Cup winner Ben Stokes; musician, Liam Payne; professional golfer, Ian Poulter; and six-time Olympic Gold Medalist, Sir Chris Hoy to name a few. These races have run in place of every postponed Grand Prix. The series utilizes the official Formula One 2019 PC video game developed by Codemasters and the visuals are impressive. The races have provided great racing and entertainment value with lively commentary. Charles Leclerc won his debut race after receiving the game just three weeks earlier. Then he won the next race as well and we're excited to see new rivalries emerge. The broadcast is available on the official Formula One YouTube, Twitch and Facebook channels as well as Marquee TV broadcasters such as Sky Sports in the U.K. and ESPN in the U.S., and we've experienced strong engagement. Through the first three races, digital cumulative views reached 12.9 million, and total viewership including TV estimates reached 16.3 million. The Virtual Grand Prix even trended number one on YouTube U.K. We will continue with these virtual GPs until we return to racing. We were also pleased with the response to the second season of Drive to Survive, which debuted on Netflix at the end of February. The season provided unprecedented access to the teams and drivers. We saw the drama of the driver switch from Gasly to Albon mid-season at Red Bull behind-the-scenes action of the wet race in Germany and learned more about Williams' challenging season. We are in advanced discussions for season 3 and the team is ready to capture footage in 2020. In news that may have been overlooked due to COVID-19, we welcomed Aramco as a long-term global partner to Formula One. We announced this agreement on March 10 and Aramco as our sixth global partner alongside DHL, Emirates, Heineken, Pirelli and Rolex. We look forward to sharing our expertise to identify opportunities for the advancement of sustainable fuels, enhanced engine efficiencies and emerging mobility technology. This deal includes trackside branding at most races and title rights to three Grand Prixs in 2020 and exposure on our digital platforms. Further in this area, we welcome Ben Pincus as our new Director of Commercial Partnerships at the end of February. Ben joins us from Heineken, where he managed their worldwide sponsorship team and partnership with Formula One. On the distribution front, we announced a multiyear media rights deal extension in Canada with Bell Media's TSN and RDS, which goes through the end of the 2024 season. Our fan base continues to grow in Canada. The 2019 season audiences across TSN and RDS grew 19% year-over-year, and coverage across the two networks reached nearly 5.3 million Canadian viewers. We've been in regular contact with our commercial partners, broadcasters, sponsors and other partners. These partners have almost all been very supportive. Our conversations with them regarding the 2020 season are not as advanced as those of promoters, as we need to determine our modified calendar to have more substantive conversations. A number of agreements have provisions related to the number of races, although, that number of races is well below our originally planned 22. These are all valued long-term partners, and we expect to resolve any potential contractual issues in a fair and straightforward manner. We had been in the final stages of completing the Concorde Agreement when the coronavirus crisis turned everything on its head. We decided to put the Concorde on the back burner for the short-term and prioritize addressing issues related to 2020 first. As we move forward with the 2020 calendar and finalize regulatory changes with the teams, we will once again return to completing the Concorde Agreement in the immediate future. Obviously, we are still dealing with a lot of uncertainty regarding the short-term and the coronavirus. We're increasingly confident although there are no guarantees that we will have a 2020 championship season. Fan support has been great and there seems to be an incredible pent-up enthusiasm for racing to begin. At the same time, we're also looking beyond this year to a 2021 season. The long-term contractual nature of Formula One helped provide long-term stability at a time of uncertainty. We continue discussions for potential new races or race renewals for 2021 and are going well. We also continue discussions with other new or existing commercial partners. We expect the impact of the coronavirus crisis on the broader world will extend into the future, but we feel we're well positioned to return to the growth curve we were on a few months ago and look forward to a better future for all of us. I recognize everyone would like revised projections for 2020. At this point, all we have are sensitivities with a range of potential results based on many variables. What is clear is that 2020 results will be significantly below original expectations, but we believe it is equally clear that we can manage through 2020 with or without racing and more importantly that our business can quickly return to our prior expectations in 2021 and beyond. Now I'll turn it back to Greg.

Thank you, Chase and thank you Brian. And to the listening audience, we appreciate your continued interest in Liberty Media and hope you all stay safe and healthy. And with that, operator, I'd like to open up for questions.

Thank you. We'll take our first question from Jeff Wlodarczak with Pivotal Research Group.

Hi. Good morning. I have a question for Greg and one for Chase. After seeing the strong results at Charter again and their aggressive share retirement strategy, I wanted to ask about your 25% ownership cap in Charter, which I believe you are nearing. When you reach that cap, are you open to participating in Charter's share retirement, or would you prefer to work with Charter management to explore the possibility of exceeding that cap? Chase, could you elaborate on the impact of racing without fans on race promoter fees, as well as sponsorship and advertising revenues? While race fees are likely to decline significantly, are there advantages for racing on tracks where the promoter fee is subsidized or covered by the government? Thank you.

I’ll go first. Jeff, I appreciate your question. First, since our holdings are categorized into two groups, it’s not clear that we will soon reach the cap, and it’s also unclear how these groups are defined and counted. Secondly, we have some time regarding that purchase before we hit the cap. Third, we have started discussions on how to adjust this situation because it may not be in the best interest of Charter’s shareholders for us to sell. We’ll see how this unfolds. We are long-term investors in Charter. We value Charter and do not want to be compelled to sell our shares.

Clearly, races without fans have a much more significant impact on promoters compared to broadcasting and sponsorship. Racing without fans primarily affects the broadcast and digital sponsorship aspects. Fans will connect through various platforms, and even during live races, many people watch on television screens. For promoters, events without fans are very different, which will be reflected in the overall experience. These events are typically week-long spectacles involving the city and the track, and lacking fans makes it a distinct opportunity and event. We understand that these situations are unprecedented. Consequently, changes for promoters are more significant, while broadcasters and sponsors tend to view the season as a whole. There are contracts with provisions tied to the number of races, so there is some flexibility. We believe we can still deliver a quality event, but without live fans, the impact will be much greater on the promoter side.

Thanks.

Thank you. I have a couple of questions for Chase. First, on the promoter aspect of F1, I'm interested in the challenges that promoters face, whether there are no fans or as fans begin to return. What steps could F1 take to collaborate with promoters to guarantee that events are both enjoyable and safe? Additionally, do you anticipate any long-term adjustments to the revenue contract model for race promoters as a consequence of this situation? Secondly, regarding sponsorship, could you provide us with more details? Many marketers have been in crisis mode recently, but as the world starts to open up, demand for sports content seems to be rising. Can you give us an update on the current atmosphere of the sponsorship market concerning events like yours? Thank you.

First, regarding the long-term impact, whether it's promoters or sponsors, we are planning to operate as we intended back in 2021. That's our expectation. As for managing through these events, we currently anticipate that the European events will primarily proceed without fans. This is how we are organizing them. We are addressing various challenges, including getting the teams and necessary personnel to the locations while ensuring their safety. We are collaborating with the local regulatory bodies and appropriate authorities, and we need to establish testing procedures and transportation plans. I held a lengthy conference call this morning with several parties to discuss these arrangements, starting with Austria since it is the first race, while also considering all our tentative European races. We believe we are making significant progress in organizing secure and safe races for everyone without fans, which is our current expectation in Europe. When it comes to events with fans, we haven't made as much progress since those dates are further out. It is challenging to have those discussions right now because there are no clear guidelines. The situation remains unpredictable, making it difficult to engage with authorities. We can begin to explore potential options for spacing and managing crowd flows, but discussing plans for September, October, or November is complicated because authorities are still focused on June and July. The strategies for managing fan attendance are likely to develop as those race dates approach, particularly since they are not scheduled until later. Therefore, we are currently planning races that will take place without fans to ensure we can move forward. The landscape is continually shifting, and reports vary across different regions. For instance, in China, various venues are starting to reopen for public gatherings. This is a situation where our understanding of crowd management improves week by week, making it a real-time management process. Regarding our sponsors, they have been incredibly supportive. We have maintained communication with them, but until we finalize the calendar, it's challenging to have detailed discussions about modifications to their agreements, especially since they each have title races associated with their contracts. However, we feel very positive about the support and enthusiasm we are receiving from them. Our sponsors are mostly large global companies that are focused on their future and figuring out how to return to normal operations. Despite the challenges posed by the coronavirus, our relationships with these brands remain strong, and we are eager to continue discussions with them as we learn more about our 2020 calendar.

Thank you very much.

And we'll take our next question from Bryan Kraft with Deutsche Bank.

Hi. I have two questions for Greg. First, is there a scenario where you would consider an RMT of your Live Nation stake, especially now that the value needed to achieve 50% pro forma ownership is smaller than it has been in recent years, or is it strategically important to keep it under the Liberty Media umbrella? My second question is about Liberty Sirius. You mentioned that you anticipate the NAV discount to narrow once you reach 80%. Is that due to tax consolidation, trading liquidity between the shares, or a potential change in capital allocation at SiriusXM once you hit that 80% threshold?

Thank you for the questions, Bryan. To complete an RMT, our shareholders would need to have 51% ownership of the spun company. Right now, our priority for capital at LSXM is to address the discount and pursue that instead of using it for an RMT of the stock. Over the long term, we believe the reattribution is strategic, and there are opportunities for Live Nation and Sirius to collaborate for mutual benefit. While an RMT may be mathematically easier, it is still a challenge and would require capital that we have different intentions for. Regarding the 80%, I believe you'll notice considerable potential from the factors you mentioned, including the free flow of capital to LSXM, which might make us more inclined to consider dividends and advocate for them at Sirius, especially if the gap remains as it is today, allowing for a comparison of which stock, SXM or LSXM, presents a better purchase opportunity.

Great. And maybe just one follow-up. Can you quantify what the tax rate would be on the dividends today, once the dividends received the exclusion that you're getting?

Albert, are you on the line?

I am. So it's roughly 7% to 8%. So it's pretty low.

I was going to say that, but I want to get the authority to verify. Thank you, Albert.

You always want Albert to bless it.

Yes. Albert blesses everything. Thank goodness.

Thanks, Greg, thanks, Albert.

Next we'll go to Vijay Jayant with Evercore.

Thanks. So Chase couple of questions. So obviously, you're targeting to get a schedule for 2020, but is December 31 sort of the end of the race calendar, or could you move to January? I know the new season typically starts in March. So are we sort of looking at basically December 31 to try and meet all your requirements on contractual commitments also? And second, obviously there's been a lot more liquidity at Formula One, post the reattribution. And at the same time some of your teams, probably with no prize fund or working capital may be in trouble. Have you been approached on subsidizing these teams or sort of bankrolling them until the season starts? And is that something that Formula One would do?

Right now, our targeted plan has us finishing later in December than originally planned, around the 13th or 14th. However, finishing in January is also a possibility that we are considering. If feasible, we would prefer to complete in December, but we would have to take a significant break during the holidays since racing in that period is not practical. This option is still under discussion with our promoters and other stakeholders. Our current aim is to finish a few weeks later than initially scheduled, ideally in mid-December before the holiday season. As for the teams, 2020 will not yield the results we anticipated at the beginning of the year. Everyone is doing their best to navigate this situation, and I mentioned our cost-cutting measures as we solidify our actions moving forward. There are many variables at play right now, making it difficult to address specific parts effectively. We need to advance further in our plans to understand our position better. We expect teams to take the necessary steps to manage through this period, and our primary goal for 2021 is to return to the path we were on at the start of the year. We are committed to achieving that while managing the remainder of this year as effectively as possible. There have been discussions about the need to support certain teams, but those conversations have not happened yet. We will assess the situation as we progress, but right now, the number of variables makes it challenging to provide detailed insights on that matter.

Thank you.

Now we'll take a question from Ben Swinburne with Morgan Stanley.

Hi, good morning. Chase just continuing this discussion. Can you give us any sense for what the sponsorship revenues will look like this year with a 15 to 18 race calendar, at least relative to your original expectations? I assume it's lower, but I'm just wondering if there's any way to dimensionalize that. And on the race promotion, if you have races with fans later this year as you mentioned is your goal, would there be any impact on race promotion fees for Liberty? It would seem like that's pretty close to what we used to consider normal. And then I just wanted to ask Greg. Greg you made a comment on the call a couple of weeks ago about the cash at Liberty Formula One. I think you used the word potentially at the opco sort of benefits liquidity at the holdco and potentially the opco? I don't know if there's any restrictions on cash moving back and forth that we should be thinking about? Thanks.

The promotion is likely more related to obligations such as signage and screen titles. We have significant excess capacity at the 22 race level, and while we are increasing it, a reduction in the number of races does exert pressure on that capacity. There are challenges to manage, particularly regarding hospitality that may not be available at some events. At its core, we believe we can greatly meet the expectations of our sponsors this year. We aim to fulfill our sponsors' needs while recognizing that these are long-term relationships. Most of our sponsors are in it for the long haul, and we will work together as partners to find a reasonable way forward. It is essential that they feel satisfied with our efforts, but we also have a duty to provide value. If we do, we expect reciprocal fair value. We approach this as a partnership. When considering promoters and fans, the situation is more typical of standard business practices. There are different scenarios, such as a race originally scheduled in the spring that has been moved to the fall, which affects ticket sales. Currently, many of our promoters are not actively selling tickets due to uncertainties surrounding the events, which means it is not business as usual. The nature of races with fans is also a consideration; will fans attend as they typically would, or will there be conditions in place for attendance? All these factors must be addressed. As we look at 2020, we acknowledge that we have agreements with our long-term partners who have been very supportive. We want to ensure fairness in our dealings with them and aim for fair value while prioritizing the vision of our business for 2021 and restoring the expectations we had for 2020.

Thank you.

So operator I think we're done with our questions today. Thank you to the listening audience and for your continued interest in Liberty Media. And we look forward to speaking with you again next quarter if not sooner. Thanks very much.

Thanks a lot.

And that does conclude today's conference. We thank everyone again for their participation.