Sirius XM Holdings Inc. (SIRI) Earnings Call Transcript

Welcome to the 2020 Liberty Media Investor Day. Before we begin, please note that in case of a technical difficulty, we recommend that you first refresh your computer browser. If this does not resolve the issue being experienced, our technical support team is standing by to help. You can reach them at any time by calling (773) 645-4877. Again, that number is (773) 645-4877. Now please sit back and relax as our program is about to begin. [Presentation]

Good morning. Welcome to the Liberty Investor meeting. I'm here at the Time Center. Where are you? Since we're virtual, I'm going to lose the jacket. We've split the agenda over 2 days. Today, we'll cover Liberty Media and Liberty TripAdvisor, and we'll end with Q&A with Greg and John. Q&A questions had to be submitted by last Friday. So we're all set. As you can see from our cold open, we're taking a trip down memory lane and revisiting our previous skips. Stay tuned as we've got highlights throughout the meeting. A few logistical items. Please tag us on Twitter using Liberty Investor Day. As a friendly reminder, all slides will be posted after we do the necessary filings. We appreciate your patience. They will be posted no later than next Wednesday, so they'll be there just-in-time for Thanksgiving. Before you text me asking me for the WiFi password, that's not my problem this year. So you're on your own. One of the good things about going virtual this year is that I don't have to read the FLS. Please enjoy this music, while you thoroughly read the FLS currently on your screen, which will also be included in your slide deck. Except there is 1 I do have to read, given our announcement this morning. Our registration statement relating to the securities of Liberty Media Acquisition Corporation has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful, prior to the registration or qualification under the security laws of any such state or jurisdiction. When available, copies of the prospectus related to the offering may be obtained for free by visiting EDGAR on the SEC's website at www.sec.gov or from Citigroup, care of Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, New York, 11717. Telephone: 808-31-9146. Or Morgan Stanley & Co LLC, Attention Prospectus Department, 180 Vera Street, Second Floor, New York, New York 10014. Now let's get on with the show. [Presentation]

Welcome to Liberty Media's Investor Day. As my old boss, Bill Gates said, this is like a world war, except in this case, we're all on the same side. Looking back at the second World War. The effect of the pandemic may be symbolized by Rosie the Riveter. Between 1940 and 1945, there was a 37% increase in the female workforce in the U.S. Men went to war and women went into the workforce. Necessity bread acceptance. This year at times, while it's also felt like ground dogs day. Life has also felt like listening to a podcast at 1.5x speed. Just as Rosie showed what was possible, COVID has also broken down the barriers of what we thought was possible. It's accelerated multiyear trends, speeding up adoption from years to months and force digitization across industries. Labor-intensive sectors have been shut down, and there's been rapid adoption of technologies in response to these lockdowns. Some of the best-performing stocks have had the highest yield of intangible capital per employee. We believe this is part of a larger trend, higher asset utilization. Across the Liberty portfolio, we're seeing similar accelerants and asset-light transitions. At F1, we completed a transition to remote broadcasting in 2 months rather than the plane 2 years, with a roughly 35% reduction in traveling, headcount and overall cargo. Our esports took off with a delay in the start of the season. Participation was up 118%, and we had more than 33 million viewers. We were the #1 video on YouTube, even above the Queen's speech. At Braves, we have been digitizing in-park transaction functionality with contactless payments and mobile ordering. At Live Nation, we've launched smart suite event of tools that helps fans safely return to live events. This has accelerated the adoption of new technologies everywhere. For example, the Kansas City Chiefs, they opened the NFL season with 100% digital ticketing. Live Nation has tested streaming concerts, and they become the norm. 95% of our fans indicate they plan to return to live events. That's the highest point of confidence since the start of the pandemic. Charter has accelerated the rate of self installs from 32% in the third quarter of 2018 to 83% this quarter. At Sirius broadcasting ops have gone remote. Howard is happily broadcasting from his basement in the Hamptons. QVC has also had innovation on the broadcast front. We've seen more creativity with streaming-only content, like our recently launched Curtis Stone Travel series. We've introduced hosts from home content, which has increased flexibility for vendors in the future with more manageable broadcast schedules. Our customers love the authenticity. Two hosts were the original influencers and now more than ever. But as Charlie Munger has said, "consequences, have consequences and the consequences of the consequences have consequences and so on." We have attempted today to identify some potential second and third order effects of industry accelerations that we hope are neither overly obvious nor too risky in asserting. We do understand it is risky to draw conclusions in the middle of a pandemic, especially with the rapid change of developments in cases, vaccines, the political landscape and variability by geography. Nonetheless, we will try. Here are some of the accelerated trends to discuss today. Digital boomers, born out of necessity, there has been a widespread acceptance of online platforms with expanded audiences. Digital acceleration has been less impactful on my 17-year-old twins and other digital natives, but whose parents haven't started to buy groceries online for the first time. The 5-year expected e-commerce growth rate curve accelerated in 5 months. Consumers purchased clothing, household products and groceries online for the first time during COVID, fueled in part by boomers. Boomers account for more than 50% of total U.S. household wealth. 47% of boomers have increased digital spending during COVID. You too can still get some blue light glasses available on QVC. For example, in online grocery, penetration doubled in 2020 to just under 10%. Last year, Activate estimated, we'd have 134 million online grocery shoppers in 2024. In reality, in 2020, we already have 140 million. We're blowing the top of many of these digital trends. So what's next? We think there's a broadening opportunity for Zoom and other streamers. They are likely to become aggregating platforms with vertical apps that allow businesses of all sizes to create targeted services. Zoom will have a use case regardless of your age or technical ability. There will be a future resource for things like DIY home projects, fixing your sink or scheduling a home appraisal. Last month, Zoom announced a new Zoom apps bundle, which will roll out this year. It'll initially be focused on workplace and educational productivity with apps like Asana and Kahoot!, but this is Rosie the Riveter revisited. Society didn't think we would be able to do it in this way. But when we had to, we did, and we will continue going forward. GBC cribs, the DIY nesting phenomenon was hot well before COVID fanned the flames. Marie Kondo may have been the original, but how fortunate that Netflix had this lineup ready to launch when COVID hit. With state and homeowners, we're all nesting and upgrading our cribs, our bedrooms are our offices, our living room are our gyms, our backyards are our vacations. Yes, this is an obvious narrative that we are all likely living, but let's look at how this is playing out of curate. QXH footwear is down 14%. It appears some people haven't worn shoes in months. Color cosmetics are down 38%. Front gate pool products are up 129%. QVC fitness and wellness is up 81%, and Zulily puzzle sales are up 157%. DIY is in because you can't let anyone else in your home. QXH at-home pedicure sets are up 22%, and nationwide e-sales are up 201%. At QXH, bread makers are flying off the shelves. While premium beer sales are lagging due to bar and restaurant closures, we're compensating in other ways. Studies estimate the average person drinks per day are up 27% in COVID, and we know wine sales at QVC are up 133%. The on-site is the new off-site. Born out of necessity, we have virtualized the office. Life used to revolve around work, now work revolves around life. This has given rise to a subset of white collar and technical workers we call the Lululemon collar worker, unencumbered with a steady income, they can work from anywhere, if you have a good broadband connection. Interestingly, only 7% of British workers want to return to the office full-time once restrictions are lifted. These trends will permanently shift business travel today. Tune in later to the Liberty Trip presentation to hear more. And just check out Marriott's work anywhere offering. This may cause pressure on wages as companies can seek lower cost talent in distant locations. And there surely will be a divergence in the trend across subsets of the U.S. workforce. The Lululemon Collar workers have almost fully recovered employment rates to pre-COVID levels unlike other groups. So what's next? We've already seen acute impacts to commercial real estate. We spoke with 1 leader in the financial services industry. He said, current social distance protocols would require 3.5 hours to get the whole staff through the elevators into their respective offices. Surely, this will abate with vaccines. But over the long term, we do expect a significant decline in commercial real estate demand. While it may sound aggressive, one leading venture capitalist estimated will only need 20% of the current commercial real estate capacity in the future. Microsoft has already stated a new policy, which says if you're not going to be in the office 3 days per week, you don't get a desk. Office space will surely be imagined as a creative meeting space, and this will drive higher asset utilization of the physical workspace and may cause even the reincarnation of WeWork. If these trends persist, what happens, for example, to the midtown lunch spot, the dry cleaner or the Halog guy on 53rd. Perhaps this will be the final nail in the coffin for the shoe shiner and the magazine standard. With the remote workforce, there will no doubt be impacts on innovation and on workplace culture, creative thinking and deal generation. Early indicators imply productivity is holding up. But we have questions about this for the long term. For millennials, the value of flexibility outweighs face-to-face connections. The deals of today originated from the face-to-face connections of 2 years ago. But what about the deals that are 2 years from now? With the elasticity of time in quarantine, yes, you're saving time on commuting, but we're also working all the time zones. I have a son who's an investment banking analyst. He claims his workday has expanded 2.5 hours. He used to only get work when the Managing Director came in at 9. Now they start sending e-mails at 6:30 a.m. Born out of necessity, the pendulum has swung all the way to the virtual workforce. We think the right balance will settle somewhere in between with increased flexibility, part of the new reality. With increased flexibility, we believe there will be a potential positive reversal of the current shecession. We started the year with this headline in January. Now we hear these quotes. Women have taken on a larger share of child care, remote learning and elder care, 4x as many women as men have dropped out of the labor force nationwide. Here's a powerful message from the CEO of Mastercard. But we are optimist. And in the long run, we believe women can be beneficiaries from increased flexibility in the workplace. We do recognize the concept of flexibility may look different for different kinds of workers, whether in the corporate world or in service industries. But with fewer career interruptions, we believe that in the years to come, we will see more women in leadership positions. De-densification. With more time at home, everyone is rethinking where they want to live and real estate volumes are running sky high. The typical U.S. home sold in 16 days in September of 2020 versus 28 days at the same time last year. Over the last 50 years, economic activity has clustered in larger U.S. cities as employment shifted from manufacturing to services, but the cost of living, state taxes, and in some cases, wildfires have already made cities like New York and San Francisco, difficult to scale. Pandora wisely expanded from Oakland to Atlanta in 2018. Their presence has grown from 0 to 200 people with a significant focus on product development. We've all heard about urban flight during COVID. Mostly this is not the case. It's really concentrated in New York and San Francisco and not evident in other U.S. cities. U.S. residential inventories are nationwide down about 5% in the third quarter. By comparison, New York residential inventories are up about 16%. Between March and June, 16,000 New Yorkers switched to Connecticut addresses. Perhaps it's not a coincidence that there are 16,000 apartments sitting unrented in Manhattan, double the typical vacancy rate. As a result of COVID, we expect tech and Silicon Valley and financial services in New York will virtualize. Slack is not the only company hiring for 100% remote positions, offered in 2 dozen states. In recent years, the urban population has gotten increasingly younger. In part, the appeal has been trendy bars and restaurants. But the New York state controller is estimated there are 1/3 to half of all Manhattan's 24,000 restaurants could close in the next 6 months. So consider the network effects. If there are less restaurants bars and night life, will that reduce the appeal of cities for the younger demographic and further the flight from cities. De-densification will also result in other inefficiencies, particularly around the environment. The suburbs are responsible for about 50% of all U.S. residential carbon emissions. In the burbs, car rides replace public transport, which produced 4x as much greenhouse gases per passenger mile. Subway and commuter rail ridership in New York is down at least 60% and closer to home here in Colorado, the RTD ridership is down 70%. Other COVID-related inefficiencies will also impact the environment. We've seen a resurgence in single-use everything. Plastic demand is up 40%. Global parcel volumes are expected to grow 19% this year, leading to inefficiencies with more packaging and last-mile delivery. Even during the lockdown, we saw relatively low savings in energy consumption. For example, commercial buildings energy consumption was only down 15% even in April at the height of the lockdown. Outdoor heaters and constantly running ventilation systems have only added to our energy usage. Overall, it's estimated that energy efficiency in 2020 will be down 12% to 15%. Charles Schwab meets Candy Crush. Pre-COVID, there was already a rise in the fractional trading platforms like Acorns and Stash, with sports on the sidelines and stimulus checks being cashed, sports fans went in search of a new way to bet, whether on FanDuel or Robinhood. We've seen stunning market activity in 2020 on Robinhood. Over 50% of new brokerage accounts in the first half of the year were opened on Robinhood. And Robinhood daily average revenue trades were 4x E*TRADE. And Robinhood users trade 88x as many option contracts as the average Schwab customer. As 1 macro strategist cheekily said, "the smart money is the Robinhood accounts and the dumb money, our billionaire hedge funds." There is an onslaught of market research attempting to quantify the market implications of Robinhood, but it's difficult. Our friend, Scott Galloway, has said, "If you want to know what Tesla stock will do tomorrow, just look at how many Robinhood accounts were open today." Surely, other factors have contributed to the wild market movements of 2020. SoftBank, which might be viewed as a large aggregated Robinhood account, bought $50 billion of tech options and stocks like Amazon, Netflix and Apple. On the other hand, corporate buybacks have been reduced by more than half in 2020. We've seen irrational market behavior in our own stocks. Look at the premiums on the Bs versus the As and Qurate and Liberty trip. The godfather of this movement is Dave Portnoy, founder of Barstool Sports, check out this video. [Presentation]

Our thesis, can't stop, won't stop until there's a market correction. Dr. [indiscernible], "there has been a movement to telehealth for decades." But there's always been an underlying assumption that anything other than in-person was unsatisfactory. COVID forced to change. Last year, 11% of consumers use telehealth. 76% of consumers indicate they're likely to use telehealth going forward. Medicare patients grew telemedicine visits from 11,000 a month last year to 1.3 million a week in mid-April. McKinsey estimates that the telemedicine market could be worth as much as $250 billion a year, and digital health companies raised $5.4 billion in the first half of '20. The hardest transition may be physical diagnostics, the biggest growth is likely to be mental health remotely. So what's next? People will get over their obsession with HIPAA and the privacy of medical data. Doctors will go DTC and hospitals at risk of being disintermediated. 15% to 20% of all their patients come from emergency room visits, which are down substantially this year. Rising unemployment plus our health care crisis will surely raise questions about continually tying employment and health care coverage. This may also be another example of an industry migrating towards higher asset utilization with expanded medical access, shorter weights and more efficient use of facilities and doctors times. Campus Light. Pre-COVID, higher education was already in trouble. Overall, enrollment growth is slowing, as you can see in this chart and the tuition revenue of small private schools declined 3x as much as their larger peers. The cost of attending college is up an average of 10%, and debt has risen 3x that rate with repayment rates plummeting. COVID has accelerated the adoption of online learning. This is another example of higher asset utilization where digitization will drive better productivity from education facilities and faculty. Pre-pandemic online education was started to grow with 35% of undergraduate students taking at least 1 course online. Now nearly 100% of college students are learning remotely, at least in part. Online degrees are being destigmatized. And here, we may have Rosie again. Longer term, surviving schools will look to better monetize their assets with larger student populations and likely a hybrid model. Princeton can rely on its endowment distributions for 50% of operating revenue. Without it, they would lose over $1 billion. In contrast, Liberty University, which doesn't have the endowment, has only 1% of its operating revenue from its endowment distributions, but has 100,000 students, most of them online. As a result, they have a robust income statement and high asset utilization of both their physical campus and their talent pool. There are limitations to online-only education, and there's still a benefit to the in-person component. The classroom version of the on-site is the new off-site, perhaps will involve more class time being collaborative and more lectures being pre watched online. With economic and demographic realities and COVID accelerated technology advancements, surely, a major shift is coming in higher education. Let's talk about the economy. We've seen unprecedented fiscal and monetary policies. The Fed has been growing its balance sheet for years, but COVID has taken it to another level. Monetary stimulus and Fed backstopping have created a sense of infinite liquidity. Corporate debt issuance through the third quarter was 35% higher than all of 2019. Companies were given liquidity lifelines, but not necessarily solvency lifelines. We are creating record deficits with U.S. deficit to GDP ratio likely to exceed 16% this year. That's higher than all of our socialist European peers. State budgets will be hurt even more. They're not allowed to run deficits and can't print money. We do expect a supply shock from shifting to 2 supply chains, a China 1 and a non-China 1 at a cost of likely $1 trillion. And this will break 35 years of muscle memory associated with 1 integrated global supply chain. Services are traditionally 2/3 of on our economy. With 70% of them shut down, consumers have not been able to spend there. There's also been a $1 trillion increase in personal income due to the fiscal stimulus. This has gone into 2 areas: savings, which are up and product spending. Product spending is up 25% this year. That product demand has fueled the economy and stock market this year. Historically, the service sector has driven inflation with prices growing about 3% a year compared to product prices, which grow about 1% a year. This year, we're already seeing price appreciation in new categories of products like housing and food. Beef and veal is up 20% and used cars, which are up 15%. Without services, it's unclear what future inflation will be. Perhaps much of this demand is a pull forward of future product demand. We'd probably be short the 2022 futures market for camping supplies, RVs and used bikes. To finish, this has been a period of dynamism amidst great challenges. COVID has demonstrated, it's good to be big, it's good to be digital, and it's best to be both. There have been outsized winners like Amazon and Netflix and Zillow and closer to home companies like Charter and Qurate and dueling trends abound. We've seen digital acceleration driving distribution and globalization of talent and intangibles and yet greater localization of the physical and other supply chains. We are more digitally connected than ever, while we are forced into physical separation. We've had increased personal income with government assistance but fewer purchase occasions. There's been a progression towards an asset-light business model across many industries, yet there are also massive inefficiencies with de-densifications to new supply chains. We have so much new found time. Yet we all feel we have no time at all. Many of the changes we have mentioned above might be transitory, but we think a number of these effects are here to stay. At Liberty, we will look for the opportunity amidst this disruption. Thank you. As we have said, 2020 has felt like Groundhog Day. When the pandemic began, we created a red team focused on shoring up our balance sheets and ensuring liquidity. For example, most recently, last week, we priced an $800 million LYV exchangeable be 920 with a shoe that'll help fuel incremental capacity for share repurchases at LSXM. We also restructured our margin loan on life, which will free up incremental live equity that can be used as collateral for future LSXM repurchases. When the pandemic began, we also formed a green team to go after opportunities. Notably, we completed the reattribution between FWON and LSXM. As we communicated at the time of the deal, we believe reattribution was in the best interest of both sets of trackers. But at the time there was some grumbling from a few LSXM shareholders. Well, let's look back. Since then, the LSXM shareholders who bought the LYV stock at $36.72 per share have profited dramatically. As of the time of this filming, the LYV stock is up about 70%. The LSXM shareholders get half the upside on that up to $47.74 a share and 100% thereafter. So a pretty good deal. Since the time we did the deal, all of our stocks have outperformed the market. I want to reach out and thank 2 of our great leaders. We'd like to think that Liberty strength is empowering companies with talented management and letting those teams operate autonomously and successfully. But nowhere have we had stronger leadership than Chase Carey and Jim Meyer. We were blessed to have them and thank them very much. The good news is we also have a strong bench. Jennifer Witz, who's been with Sirius for nearly 2 decades, will become CEO there; and Stefano Domenicali, who has unparalleled respect, reputation and credibility will take over at F1. We do remain focused on getting to 80% of SiriusXM. It's appealing because of the tax consolidation. All the dividends that flow up from Sirius to LSXM will be tax-free versus about the 8% leakage we have today. We would love this to be an ATV, an active trader business, but it is not a priority. It would require us to go through too many hoops in a natural ax. So it's unlikely we will do it, and we do have other ATVs, the Braves and F1 will soon become one. We have used our firepower for buybacks at LSXM. We have lots of asset coverage and future liquidity to do more. I'd also note that we expect Siri will continue to buy back stock to get us to the 80% level, and we'll also continue to pay out an increasing amount of dividends. Importantly, this year, we signed a new concrete agreement and credit to Chase Carey and his team. This should promote a more level playing field and ensure the long-term financial stability of both the league and the teams. Importantly, for us, it provides greater upside for FWON as we have greater financial success for the league. There are other regulatory changes included which simplify our governance and will promote greater competition, including more standardized parts. There is still more to come, and there is future work to be done on things like reducing the cost of the engine, but we're on the right path. F1 also announced updated efforts on sustainability. There's a lot of impressive progress that's been made in the past year. We were awarded the FIA's 3 Star Environmental accreditation, the maximum award the FIA can give. 90% of the global vehicles are powered by the internal combustion engine. And the vast majority will continue to be powered by internal combustion engines for a period to come. So it's important that we help drive advances in that engine. The largest opportunity for emission reductions is through hybrid technology and sustainable fuels. Electric is great PR, but electrification isn't the only future. To power an F1 car at current speeds over a Grand Prix race, you would need the amount of energy in a 6.5 tonne battery. We have a history of long strong returns, and that equity story remains good. As a part of continuing that story, I want to introduce LMAC the SPAC. Given legal restrictions, I can't say much more than what's on the slide, but I do encourage you to please look at the registration statement that we filed today. Some of the opportunities for us for the SPAC and other vehicles we have, may be in beaten down industries. The market, may be in our judgment, underestimating how long it will take for some of these segments to rebound, and we will continue to look here for interesting investments. Lastly, I want to point out some of the great work that our companies did around COVID and community engagement. Thank you. And now you'll hear from Brian Wendling. [Presentation]

Thank you, Greg, and good morning, everyone, from Englewood, Colorado. The liquidity picture is strong at Liberty Sirius. $12 billion of total debt was $7.9 billion being held directly at the Sirius level. Under moderate leverage of 3.1x and an undrawn $1.75 billion revolver. This leaves $4 billion of debt at the parent level, which is pro forma for the live exchangeables that we just issued. Pro forma impact of an incremental $800 million in debt and cash, which excludes any potential upside from the green shoe. This is an attractive instrument with an exchange price of $90 and a coupon of 50 basis points. We plan to use the proceeds to repay the legacy live exchangeables and settle the call spread in 2021. Any incremental cash will be used for general corporate purposes, including stock buybacks. Our corporate debt is comprised of $1.7 billion of drawn margin loans and exchangeables covered by our Siri shares and $1.2 billion of exchangeables covered by our live stake, and the 1.375% LMC convertibles, which we'll discuss more in a moment. This debt is supported by ample liquidity, as you can see on the right-hand side of the slide. After backing out the Siri and Live shares underlying the various margin loans and exchangeables and the value of the live call spread, there's $14.6 billion of asset value. This includes the pro forma impact of freeing up 45 million shares by amending our margin loan in conjunction with the newly issued Live exchangeable. For purposes of this slide, we are valuing the call spread at intrinsic value, assuming Live Nation is trading above $47.74 at settlement. Lastly, there's also pro forma cash of $900 million and margin loan capacity of $800 million. Next, we just wanted to provide a little bit more clarity around the 1.375% cash convertible notes. We issued these notes in 2013. At issuance, we bought a call spread to increase our net conversion price to up 75%. In 2016, the notes became convertible into a basket of shares when we did our tracker recapitalization. As you can see, the majority of the basket value is still on the Siri shares, but there is a portion that is related to the BATR and FWON shares. As part of the reattribution in April, we moved a portion of the BATR interest over and created an F1 inter group interest to cover the exposure of those 2 securities. As a result, we are now hedged on our exposure to price appreciation on the securities in the underlying basket. Looking at LSXM's NAV. Pro forma for the reattribution, the NAV of LSXM is still pretty simple. Two public securities and Sirius and Live Nation make up 95% of the asset value. Adding the intergroup interests, the pro forma cash and a small iHeart investment to finish off the asset side. [indiscernible] value inclusive of the impact of the bond hedge and the warrant, and you include the intrinsic obligation under the call spread to get to an NAV of $19.8 billion or $8.30 a share. That represents a 34% discount. Even if you 0 out all non Siri equities, including the [indiscernible] burn the calculation with a full amount of corporate debt, we would still trade at a mid-teens discount. Moving over to the Formula One Group. We have a strong liquidity position here as well. $1.4 billion of cash at the parent level, $639 million of liquidity at the op-co level, which includes $500 million of undrawn revolver capacity. The BATR intergroup interest and the AT&T shares round out the left side of the slide. After adding in the expected intrinsic value of the live call spread and backing out the AT&T shares that underlie the exchangeables, you get to our total liquidity picture of $2.6 billion. This leaves us in a good position, both at the opco level with the revolver and at the parent level with available cash balances to either pursue an attractive investments, opportunities or support the F1 ecosystem, which doesn't appear necessary at this time based on the success of the 2020 season. As the next slide states, we have a manageable debt profile at the F1 group, $2.9 billion of debt at the F1 level. As a reminder, we were at 5.1x leverage at year-end before feeling the effects of COVID. We have since modified covenants, replacing net leverage with a $200 million minimum liquidity covenant through March 2022, which is easily covered currently with the cash balance and the revolver. At the parent level, we have $800 million of debt, the bulk of which relates to our 1% convertible notes, which are stated here at fair value. The remainder of the debt is either covered by our AT&T shares or other corporate level assets. Switching to the Braves. We have total debt at the Braves Group with a little over $700 million. This is offset by cash of $240 million, of which $77 million sits at the parent level and could be used to help support the Braves, if needed. During Q3, we amended our covenants on the stadium debt as well as the MLB facility and the revolver at the team level. Lastly, let's spend a moment thinking about the Braves valuation. Per ESPN reports, Steve Cohen paid $2.4 billion for the Mets, implying a 6.7x revenue multiple. We aren't saying Steve paid too much, but we appreciate what it should mean for our stock. If you were to look at it on a dollars per win basis, he paid about $93 million per regular season win in 2020, implying a valuation north of about $3 billion for the Braves, by our math. The Braves are currently trading at 2.8x through 2019 team revenues or $1.2 billion after backing out analyst consensus value for the Battery. This compares to $1.8 billion for the most recent Forbes estimate. If you were to apply this Mets revenue multiple to the Braves, the Braves would have an enterprise value of $2.6 billion. Congrats to Freddie on the NL MVP. As he is demonstrating on the right-hand side of the slide, this would take the stock from its price of $21.39 on [ 11.6 ], up over 100% to $43 in change. Note these prices are inclusive of the Battery. Fairly trading at comparable sales comps is truly an opportunity headed out of the park, and we expect continued good things to come for the team and for the equity. Thank you for your continued interest in Liberty Media Corporation. [Presentation]

I'm thrilled to actually be here in our SiriusXM studios in Rockefeller Center today. And maybe after we wrap this up, I'll go back down to Jim Meyer's office and start taking some measurements. In all seriousness, I am very excited to be taking on the CEO role of SiriusXM in January. Jim Meyer and I have worked together for 17 years, and I've learned a tremendous amount from him. We share many of the same values, including hard work, high integrity and following through on our commitments. I'm incredibly grateful to have had him as a leader over the last several years. And I know I speak for all of you and the employees at SiriusXM when I say we will miss him dearly. We are in an incredibly powerful position. We are the leader in audio entertainment in North America with 150 million listeners across our platforms and brands. Key to this and core to us maintaining this leadership position is our content. We are the best in audio across every format and all genres. We will always invest in content to support our value proposition across our platforms in a disciplined way. You can see many of the new additions we've had this year on this slide, including our expanded relationship with Kevin Hart, our recently launched partnership with Lebron James and UNINTERRUPTED on Pandora, which will soon come to SiriusXM as well and our soon to be launched Marvel Podcasts. I want to take a minute and talk about Howard Stern. So Jim talked a lot about this on the earnings call a few weeks ago. I have nothing new to add today, but we remain encouraged and confident that we'll have something to say soon on this topic. I think we can all agree that Howard Stern is at the top of his game. He is incredibly talented and creative, and he has done some of the best interviews I have ever heard and seen in the last several months while working remotely. We would be thrilled to continue to have him on our platforms going forward. I want to talk a little bit about podcast. SiriusXM has always led in the talk audio space. We've been doing talk audio for 20 years. So we are well positioned to participate in the podcasting space. We will be launching podcasts on SiriusXM very soon. You'll see us provide a very curated set of podcasts for our SiriusXM paid subscribers, including our much anticipated launch of Marvel. For Pandora, we'll provide a much broader set of podcasts, including those from third parties to complement our music service. And with the addition of Stitcher we have a podcast-focused content offering as well. Let's turn now to SiriusXM specifically. We have a winning consumer value proposition combined with a resilient business model. The combination of our unique premium audio content offering across music, talk, sports, news, comedy and entertainment, along with our compelling ease of use in the car drives our strong conversion and retention rates. Key to growth for us in the future are 4 initiatives: protecting and growing our position in the car; building our 360L capabilities; driving SiriusXM engagement outside of the car; and growing our digital-only subscriptions. We'll talk more about those in the coming slides. I want to go back to our business model. We have an extremely powerful business model and business models matter. At no time, have we seen that more than over the past year, which has been extremely challenging for many companies. However, we are uniquely positioned to continue to drive our strong results because of our resilient subscription model. We have high ARPU and high variable margins that support our profitability. Let's talk about our position in the car. I feel really good about this. We have executed a number of long-term agreements with virtually all of our OEM partners. You can see the most recent ones here: BMW, GM and Kia. Many of these agreements even go out as far as 2028. These agreements are key to improving our penetration rates over time. We still expect to get to 80% penetration by the end of this year. And we have line of sight to even a couple points higher than that as we go into next year. Of course, changes in market share and model mix could affect this or if we could see fluctuations, but the overall trajectory is the same. We will see increasing penetration rates among our new car sales. I'm also very pleased that we've been able to secure improved distribution of 360L across our OEM partners. We will reach 25% of our SiriusXM equipped vehicles next year, and that will grow to 80% in the 4 years beyond that. 360L is how we future-proof our business. The combination of satellite and IP delivery in the car gives us expansive bandwidth and the capability to offer more personalized services to our subscribers in the car. Our improved penetration rates on the new car side roll through to used cars and improve our overall long tail opportunity and drive increases in our enabled fleet, we expect that over time to reach 220 million vehicles on the road. Now that we have secured and advanced our position in the car, what's key is for us to expand our engagement among our satellite subscribers outside of the car. The vast majority of our subscription packages now include streaming. We know that if our trialers stream during the trial, our conversion rates are materially higher. The same follows for our subscribers, if they stream, retention is higher. This has been a slow and steady March. It is a marathon and not a sprint, but we continue to see improvements every month. In addition to getting our satellite subscribers to engage with us outside of the car, we're looking to grow our digital-only subscriptions. I believe there is untapped opportunity here. This is key to our growth going forward, and we see this as a new funnel for our business. So let's turn to Pandora. We are improving our content, both with select SiriusXM content, increasing numbers of podcasts and we're improving our feature set. We've seen great engagement with Modes, a feature that we introduced last year, and it continues to build in terms of its engagement, especially when we combine it with unique brands like Lebron James and UNINTERRUPTED. On Pandora, maintaining listenership remains a challenge in a very competitive market. However, the bright spot I see is our ability to monetize through advertising. We are still the largest free audio platform in the United States. But what's even more interesting is the fact that we can use our expert ad sales team and our ad technology to improve our advertising business outside of Pandora and off platform. So let's turn to the advertising business. The massive U.S. audio advertising business has clearly struggled this year with COVID. But we still have a business of $15 billion in revenue, and terrestrial radio still maintains the dominant share at 70%. However, the share of listening for terrestrial radio has been in decline. And therefore, the growth in the future will come from digital and satellite. We are clearly well positioned to capitalize on this growth. Not only do we have the strongest free audio platform in the United States, but we also have added Stitcher and Simplecast to our ad technology stack to be able to provide effective monetization for podcast creators. We now offer a one-stop shop for content creators and advertisers. At $1.3 billion, this is clearly an important and growing revenue stream for SiriusXM. I want to talk about 2 additional revenue opportunities. We are exploring, launching an ad-supported SiriusXM satellite tier in the vehicle. You've heard us talk about never losing a listener. The best way and most successful way, I think, we can achieve growth here is by integrating the product in the car. We are looking at a number of different options in terms of the number of channels and the types of channels because what we don't want to do is cannibalize the robust business model we have in subscription in the car. However, with the combination of satellite and IP, we can offer targeted and interactive advertising capabilities. And this can be a successful way for us to win back our nonconverters and churners in a much more integrated way. The second revenue opportunity is Spectrum. Jim showed this slide last year, and I'm pleased to report progress. We have launched our initial wideband deployment this year. First, with an aftermarket radio in the middle of the year, and now we have our first OEM launching in the next month with the production of our wide band chipset. This chip allows access to both pieces of our Spectrum. And as soon as the middle of this decade, we will be able to consider options to free up the low-band for other opportunities. There will continue to be additional ideas as we research what we might use the Spectrum for going forward. This year has been incredibly challenging, as you all know, and I am very proud of our team in terms of how we have delivered against these challenges. Our self-pay net subscriber additions for SiriusXM, we expect to be approximately 800,000 this year. That is 90% of the number we initially expected at the beginning of this year. Of course, we have seen the tailwind of rising auto sales, driving and rebuilding our auto funnel, but we've also had extremely strong performance in churn across all of our reason codes. So our SiriusXM subscriptions will be close to what we expected earlier this year. Despite a major falloff in advertising revenue in the second quarter, our third quarter advertising revenue was down just 6%. So our total revenue for 2020, we expect to be down only 1% at approximately $7.85 billion. Adjusted EBITDA is expected to be approximately $2.475 billion, which is up 2% versus 2019. And our free cash flow generation remains strong at $1.6 billion. Our free cash flow generation has been what's enabled us to deliver significant capital returns to our shareholders. In the third quarter, we ramped up our repurchases. And recently, we announced our fourth consecutive increase in our dividend. Since 2012, we have returned more than $15 billion of capital with repurchases and dividends to our shareholders. Given all of this, we have also been able to execute a number of strategic transactions over the past year. We have deployed our capital to support our business with the acquisition of both Stitcher and Simplecast to enhance our podcasting capabilities. And earlier this year, we made a strategic investment in Soundcloud to have a better window into the global streaming music company and its attractive younger demographic. In closing, let me tell you what our priorities are for 2021 and beyond. We will bolster our leadership position in audio in North America with premium content and effective distribution. We will continue to drive penetration of SiriusXM and 360L in the car to fuel the long tail growth in new and used cars and build our enabled vehicles. We will accelerate SiriusXM's digital-only subscriptions and the engagement of our satellite subscribers outside the car. We will strengthen our position as the largest and premier digital audio ad platform in North America, and we will leverage our unmatched business model to deliver significant EBITDA and free cash flow to our shareholders. These are my commitments to you. Thank you. [Presentation]

Good morning, and welcome to the Live Nation Show. While the flywheel is paused. Today, I want to take you through why the fundamentals of our business are still strong? Why we see great opportunity coming out of this? And how we have the balance sheet to finance our growth. We're looking today at some of the greatest pent-up demand that the live business has ever seen. The fact that 83% of fans are holding on to their tickets in anticipation of next year's show is amazing. On the supply side, artists are waiting for the green light. We have lots of venues, underutilized, available and ready for a 2022 surge. And we're now seeing a path to a business back in the summer of 2021 with recent vaccine news and other science upgrades. And at Live Nation Ticketmaster, we're doing our part to get ready, both at the access control level and at the venue protocols. We believe coming out of this, we will have an upgraded flywheel. We're seeing technology advances and opportunities that will excel growth programs for us. We're seeing new programs emerge. And we've got an evolved leadership team that's ready to innovate in a Live Nation 2.0. And now Jackie will take you through some of these programs.

Thank you, Michael. As the flywheel starts up again, our global expansion opportunity will accelerate, thanks to our superior business model, both at Live Nation and Ticketmaster, we have the ability to grow market share over time, including in underserved markets where we can meaningfully increase our presence. This will lead us closer to our 125 million fan goal, driving an incremental 275 million of AOI opportunity. We've also used this time to rethink our Ticketmaster business, aligning everyone under 1 global team. Over the next few years, this team will be tasked with developing and implementing a global technology road map with the goal of getting Ticketmaster to 1 global marketplace, representing an additional 75 million of AOI opportunities. During this time, digital ticketing trends have also accelerated with certain events having 100% digital ticketing adoption rates. This will accelerate our ability to improve our marketing, optimize our pricing and improve our on-site spend through contactless concessions, representing a 225 million AOI opportunity. We've also rethought our entire e-commerce flow from the waiting room to the checkout page, we've gone through all our digital properties, optimizing and increasing our ad units, representing 125 million AOI opportunity. With that, I'll hand it over to Joe to talk about some new items we've been working on.

Thanks, Jackie. One of the areas we've seen great fan demand this year is with streaming concerts, over 100 million fans watching live nation streams this year. Going forward, we think this can be a great incremental revenue stream for artists who are already putting on their concert to add the stream. And Live Nation is uniquely positioned with over 23,000 concerts across our venues and festivals, where the artists can simply add the digital stream to the concert they're already doing on a very efficient manner. That, combined with our Ticketmaster platform, where we can sell both the virtual ticket and the real ticket together on the same platform, leveraging Ticketmaster stand traffic, gives us a tremendous opportunity to create a new revenue stream for artists, which Live Nation can also benefit from. Another area that we've seen a lot of growth this year is in direct to fan e-commerce. We've long been in this business, working with artists on fan clubs and ticket programs for them to reach their fans directly. And this year, the merchandise business that we operate for our artists is up 85% year-to-date. These programs together can create a platform along with other pieces that will give artists a number of ways they can connect with fans and again, create additional incremental revenue streams that both they and we can benefit from. And as we've stopped over the past several months, we haven't stopped asking ourselves how we can work better? How can we be more effective? How can we be more efficient? What technology can we use? How do we centralize to take advantage of special skills? How do we develop new data tools? How do we make decisions that are faster? And as we found a number of areas that we can do that, we've also seen that we can do it cheaper. And we think that we can pay $200 million out of our cost structure while operating more effectively. And these cost savings, along with the liquidity that we have today, now has us at a point where we can see a path forward. We believe we've got the capital necessary to not just come out of this, but to accelerate as we come out of it. And as we look at the great range of liquidity options that remain beyond what we've already have, we think that we can truly take advantage of any opportunity that we see as we emerge from this pandemic. So as Michael spoke, the supply and demand dynamics are great. As Jackie laid out, our core business opportunities are as large as ever. We have new opportunities in streaming and direct-to-fan e-commerce. And we've got great cost position, liquidity and flexibility, so that by 2022, we're returning to the double-digit growth that we've delivered over the past 15 years.

Thank you for listening to our business presentation today. But before we go, I want to make sure we acknowledge all those affected by the live shutdown. And I'm very proud of Live Nation. We have launched Crew nation, raised over $15 million so far to help all of those in need, who are the heart and soul of the live show. And here's a video. [Presentation]

When we took over Formula One in 2017, we had heard it is a skeletal organization that lacked structure and vision. It had no social media, marketing activity, brand building operation, and it rarely engage with the fans. Therefore, we immediately launched a detailed plan to grow this incredible global sport in the way it deserved. That plan was to: built in improving the competition and action on the track; upgrading events to true spectacles; aggressively developing digital media capabilities, while upgrading our traditional broadcaster fans; exploring growth opportunities, both geographically and by expanding our brand; improving the business model for Formula One and his teams to strengthen existing partners and attract the right new partners. 2017 and '18 were foundation building years, largely spent putting an organization in place to execute these plans in improving relationship with partners to enable us to deliver our goals, which was a significant challenge as we largely started from scratch and inherited a culture of divide and exploit, not partner and grow. In 2019, we began to deliver on the very first step in the long-term growth of the sport, with revenues growing 11%, pre team share EBITDA up 14% and adjusted EBITDA up 21%. More importantly, we were delivering growth in fan excitement through increased attendance, viewership, digital engagement and support for our initiatives. We entered 2020 with a budget reflecting continued growth in revenue and profits. We had a high degree of confidence in our budget given the contractual nature of our major revenue streams. We felt equally positive about our ability to keep this growth going into 2021 and 2022 as we built on existing initiatives and plan for new ones to add further strength. Obviously, 2020 did not play out as planned for us or the world, and our priorities and goals were turned in their head. Faced with the virus, our ultimate goal became positioning the sports so that the impact interrupted our growth curve not changed it. Essentially, when the world emerges from the virus, we want Formula One to largely be where we expected to be before the virus. In order to achieve that goal, we identified 3 key priorities for 2020 after the virus hit in March. First, to keep our fans engaged with the sports championship season and other initiatives that maintain the momentum we built coming into 2020 and to do so safely; second, while mitigating the financial impact from the virus this year, prioritize strong long-term relationships with our commercial partners; and third, enhance the long-term growth of the sport by completing agreements and regulatory changes to strengthen the competition and action on the track, the governance of the sport, and the business model for the teams and Formula One. There are still 3 races to go this season, but we believe we are well on our way to achieving our goals. Our success is a testament to our employees, our teams and our partners who grows to the challenge. With Formula One being the first international sport to resume its season, something we're proud of and shows the resilience of our sport. Delivering a race schedule in a safe and secure way required teamwork, planning and discipline. Most do not realize the complexity of our sport, which requires about 2,500 personnel and a schedule to race in 13 countries in 2020, with people and organizations arriving from a wide range of locations. We launched the 17-race schedule in early July, meeting our previously announced goal of a 15 to 18 race calendar. Building the schedule is a bit of a jigsaw puzzle. As 13 of our originally planned 22 race locations canceled and only 3 of our races occurred on their originally planned dates. We use this as an opportunity to create special interest for fans by adding races and locations where we had not raced in years, if at all. The fans have reacted to the revised season and new venues very well. While many sports have struggled with viewership declines this year, our viewership is up modestly over last year. To achieve these results in a season with Mercedes' dominance and Ferrari's struggles, while so many other sports have seen steep declines is a solid achievement. Our digital growth has been even more dramatic. Formula One is the fastest-growing sport league in terms of followers across Facebook, Twitter, Instagram and YouTube, with a 17% growth rate between March and September. Formula One also saw the highest year-on-year growth rate for social engagement with growth of 70%, which is more than 3x higher than its closest competitor La Liga, which saw an increase of 22%. This season also saw some great moments from both well-established champions, highlighted by Lewis Hamilton becoming the all-time leader in wins with his 92nd victory surpassing Michael Schumacher. And from some of our great rising stars, including our youngest ever podium in Monza with an amazing victory for Pierre Gasly with Carlos Sainz and Lance Stroll taking second and third spot. It looks like 2021 will be an even bigger year for driver story lines with 4 time Champion Sebastian Vettel moving to Aston Martin; two times Champion Fernando Alonso returning to Formula One with Renault; Daniel Ricciardo moving to McLaren; Carlos Sainz joining Charles Leclerc at Ferrari. And the potential for 1 or 2 emerging drivers from Formula Two to join our incredible roster of young stars that includes Leclerc, Max Verstappen, George Russell and Lando Norris. We could not have a more exciting group of stars on the track. Netflix has been capturing the drama as they film season 3 of Drive to Survive. The racing in 2020 has not only been confined to the real racing circuits. Our virtual Grand Prix series achieved a record-breaking 30 million views across TV and digital platforms during the lockdown period as fans tuned in for live sporting action, including 8 virtual Grand Prix, pro exhibition races and challenge events with current drivers, F1 legends and sports and music stars all battling it out against each other. Our F1 e-sports series presented by Aramco got underway in October, and we've seen tremendous growth with e-sports as over 237,000 participants attempted to qualify this year. We will have 8 live broadcast double last year, which will be streamed online via F1's official channels on Facebook, YouTube, Twitch and Huya, as well as broadcast by international TV partners. With regards to our 2020 results, we recognized early on that this was going to be an unprecedented and uniquely challenging year financially. The most significant impact was on our promotion revenue as only 4 of our 17 races will have had fans and those were capped at less than half capacity. Only 1 event will have a limited Paddock Club, although we have had success with our virtual Paddock Club this season. In spite of these challenges, we've not only maintained the strengthened the relationship with our promoters. We've completed renewals for next year on improved terms. Last week, we announced a 23 race calendar for 2021. We were particularly excited to add Saudi Arabia to our calendar next year. Our Saudi partners plan a race that will truly be a spectacle in the grandest sense. And we're excited to play a role in helping our partners provide new exciting experiences to the people of Saudi Arabia. Sports has always had a unique role in bringing different cultures together and crossing borders, being a force for good. We are planning for 2020 events with fans that provide an experience close to normal and expect our agreements to be honored. We -- we will also be looking to bringing the Paddock Club back to our events. We have great plans for the Paddock Club, which were deferred this year, and expect it to be a significant contributor to our long-term growth. We have proven that we can safely travel and operate our races and our promoters increasingly recognize the need to move forward and manage the virus. In fact, many hosts actually want to use our event as a platform to show the world, they are moving forward. Looking beyond 2021, we continue to feel great about the excitement from locations around the world and hosting Formula One. Many locations we raised at this year expressed great interest in new races. And other countries have stronger than ever interest. We expect to move to a 24 race calendar in the next few years, and we'll probably rotate a few races, so we'll be able to accommodate a few new partners, but they will be limited as long-term partnerships continue to be our priority. Sponsorship revenues in 2020 were not impacted as severely as promoter revenues, but it was significant at some canceled locations have material local sponsors. The fewer races reduced title sponsors and inventory and the lack of a hospital precluded hosting benefits. We've reached revised agreements with most of our sponsor partners and are in constructive discussions with all. We approach these agreements with a spirit of partnership. In almost all cases, we could have taken a much firmer approach if we simply enforced our contracts as written. However, we believe it is best to approach these discussions with a sense of fairness to maintain our momentum. We also wanted to protect the long-term value of our agreements by primarily absorbing adjustments in 2020, not subsequent years. We believe this decision has served us well. We're finalizing our last renewal for next year, and support from partners has been strong. We're also actively engaged in bringing in new sponsors. We have stated before that the sponsor area has been one that has lagged behind our expectations. Some of those challenges are macro ones in a world dominated by Facebook and Google, and some of the challenges are not initially appreciating the situation we inherited. We made some organizational changes early in 2020. And while the viruses created some unique challenges in the short term, we feel good about our momentum. Aramco is a great addition to our global partner portfolio earlier this year, and we're actively engaged in a number of opportunities in areas like communications, technology and finance. Sponsorship continues to be an area of opportunity, and we look forward to delivering on our promise. Television revenues have not been impacted to the same extent as promoters sponsorships, but it has still been material, much like sponsorships, we prioritize long-term relationships over contract terms. And again, we believe it served us well. Despite of the virus, we completed a new agreement with Sky Germany and renewals with Movistar, AMC Networks, Match TV, Bell Media, [ Service TV ] and ORF. We continue to expand our digital platform through new initiatives like a partnership with YouTube to live stream our race in Germany to a number of markets. Our OTT platform, F1 TV, continues to improve, both technically and content wise. We continue to work with our broadcast partners to either gain more flexibility or partner with them to grow this platform for our most avid fans. Overall, we could not be more excited about our opportunities for growth in the traditional television and digital world. Our engagement in social media continues to explode. Engagement in new franchises like e-sports and Drive to Survive, illustrate the global interest in Formula One. Our discussions with the large digital players continue to get traction. At the same time, our traditional partners are second to none in importance. We recognize the challenge is how to navigate this changing media landscape while building partnerships on both fronts. Our third priority this year was to implement key initiatives for the long-term growth in health and support. A cost cap on team expenditures to improve competition and the business model for both existing and potential new teams. New technical and sporting regulations for 2022 that will approve action on the track for fans. A 5-year agreement with teams to better balance price fund distribution and provide improved stability and enhanced sense of partnership. Streamline government structure to better grow and improve the sport. Advanced initiatives on both diversity and sustainability and strengthen our balance sheet to provide both stability and an ability to be opportunities during this period of continuing uncertainty. We clearly have more to do. And in some key areas, we're just beginning. Our sustainability plan will be at the top of that list. A year ago, we announced our sustainability goals for 2025 and 2030. These goals touched every part of our business, and we've made real progress in the last 12 months with actions reducing travel, freight, office operations and other initiatives to reduce our carbon footprint or achieve other sustainability goals. However, at the top of our priorities for both sustainability and our sport is building a road map for the combustion engine that addresses the environmental goals of our automotive partners and society. Formula One has long served as a platform for introducing next-generation advancements in the automotive world. We believe we have the opportunity to do that with a next-generation engine that combines hybrid technology with advanced fuels. It is increasingly clear that electric will be part of the solution, but that a carbon-neutral combustion engine is as important, if not more so, to the world's environmental goals. We need to build an engine road map with our partners that addresses both our cost and environmental goals. We are not alone in recognizing the leadership opportunity Formula One has in this case. Leaders from both existing partners and potential partners speak to the importance of this initiative. We also continue to build on other initiatives, which are important to us, our fans and society. We recognize that it is increasingly important in today's world that you have to do good if you want to do well. We are proud of our We Race As One initiative launched in July to stand against racism, address inequality and diversity in Formula One and ensure we have a positive impact on communities and the environment. We're moving forward with plans for scholarships, internships and other initiatives to address these problems alongside our sustainability goals. In conclusion, we've successfully weathered the challenges of the virus in 2020. We are planning for a world that begins to move forward in 2021 and have been clear with all our partners as it relates to those expectations. We have an even more exciting 2022 right behind it with new cars and regulations to energize competition and action on the track with a healthier business model to broaden the appeal of the sport. That being said, we recognize that we do not have a crystal ball as it relates to the virus. So we will be prepared for the unknown. But what we are certain of is that when the world moves past the virus, the Formula One will be prepared to pick up where we were before the virus interruption. We believe the world will value unique events, live and on screens as much as ever. The countries will want a platform to connect with a world that is sick of being cooped up, and the unique combination of an incredible sport inherit the state of the art technology will uniquely position us for success. My tenure as CEO over this incredible sport has been an adventure. On January 1, Stefano Domenicali will become the new CEO of Formula One, and I look forward to supporting him. The business couldn't be in better hands. As Stefano knows how to run a large and successful international business, and he also knows Formula One better the most. I wish him and everyone in the sport the best on the exciting years ahead.

Hi. My name is Stefano. Stefano Domenicali, and I'm really proud that from January 2021, I will be part of this family, I'll be taking responsibility for Formula One project. Well, this will be an incredible journey. Stay tuned, but do not expect from me any kind of guidance at all. [Presentation]

Hi. My name is Derek Schiller, I'm President and CEO of the Atlanta Braves. Welcome. So I want to first start by taking you back a little bit in time, where we actually laid out a vision for this in an Investor Day a few years ago, and we talked a little bit about the strategy going into a new ballpark as well as building the Battery Atlanta. And that strategy was really set on investing in that new ballpark, building up the business model through increased fan amenities and enhancing those revenue streams. And then we also built a whole complex of a mixed-use development associated with the new ballpark, and that created an opportunity for us to have a 365-day-a-year environment in addition to a brand-new ballpark. The result of that is nothing short of fantastic, and those results have already proven out. Today, if you're coming to the Battery Atlanta, you would see a vibrant mixed-use development. We've built really what is a community, and that community operates 365 days a year around the ballpark. The ballpark itself is obviously designed for Braves game day use. And we've got a lot of great things that are happening as part of the ballpark. This would probably be a good time to remind you that we also went through a rebranding of the ballpark. Ballpark changed its name from SunTrust Park to Truist Park when the merger of SunTrust and BB&T happens. So that is now fully in place, and all of the signage and all of the other associated assets of the naming rights partner have all been changed to Truist Park. Up until this point in time, all of the key performance indicators of this new business model have really worked out exceptionally well. And you can see on the screen there a lot of the KPIs that we've drawn out. And the fans have reacted. They've come to the ballpark in lots of different ways. And certainly, ticket sales have increased and associated revenue streams have increased substantially since we moved into the ballpark in 2017. And then also because of the success of the team and reinvesting into the on-field product, fans have also followed us in ways that include television, where we have almost a doubling, really more than a doubling of our television ratings since 2017. So we're even in this year, I think we averaged right around a 3.6 household rating, which is really fantastic and led each of the nights that we are on TV. So that was great. So then we obviously take you to March 13. We call out this date on the screen because that is the date that basically our entire operation [Audio Gap] stopped. We halted our spring training, and we ultimately started thinking about what could we do to obviously pivot from this. The world changed at that point in time. I think it was 133 days from that March 13 until we started the operation of our abbreviated 60-game schedule. But in the meantime, we focused a lot on what we could do to reduce expenses and manage the business in a different way in this COVID environment. And so in addition to dramatically adjusting our expenses and really controlling those, we also worked a lot on our health and safety protocols so that we would be at the ready when the season did resume. We created a health preparedness task force, which actually still meets to this day, and we are ready for the eventual return of fans. In fact, we did have some fans return for viewing parties during our post-season run. So with that, the Battery also has been going on and has been continuing to operate actually during the entire COVID time period. So since that March 13 date, we've had the Battery that has stayed in operation. There are some places that stopped in some degree or form, but we actually had a Phase 2 that was still continuing to be under construction. In fact, it's still under construction right now. And the primary parts of that Phase 2 is a elevator test tower and an office complex that's associated with a company by the name of Thyssenkrupp. So Thyssenkrupp will operate and occupy about 50% of the commercial space, and the remaining space will be leased out. In fact, we've got some major tenant announcements that will be coming here soon for the remainder or a big portion of the remainder of that space. So really excited about that. And that really completes the lion's share of the Battery Atlanta build-out. It's going to be an unbelievable complex. It -- actually it joins right with what is our Phase 1. On the field, we did complete that 60-game season. It was an abbreviated regular season for Major League Baseball. Normal seasons is 162 games. So having 60 games was very unusual. But we were able to win the National League East. And that obviously is a big feather in the cap. And certainly went on to a very unique post-season. The post-season was something that worked out pretty well for us, I would say. The picture that you're seeing there is really us winning the division series in Houston. And then we went on ultimately to play in Arlington, Texas for the Lead Championship series. We were one win away from going in the World Series. So obviously, a little bit disappointing in that, but overall, had a remarkable year, and that's led by a lot of great individual performances. Now up on the screen is some of those individual accolades and achievements of our players. Had a great run with a lot of the different achievements there. And we're still awaiting what we think will be the eventuality of Freddie Freeman winning the NL MVP. We're very hopeful and believe that he's deserving of that great achievement. This is also a good time to remind you that Braves Country is a very sizable piece of the United States. It represents one of the largest geographic marketing territories in all of professional sports, about 14 million homes in that area. And that ultimately represents an opportunity for us, not only today, with a lot of great things that are happening in that territory, but ultimately, it's, we believe, a great opportunity for the direct-to-consumer offerings and other things that will be happening there. On the lower right hand, there's a picture of the United States, a map of that, and you can see each team is defined in the various territories where they sell the bulk of their tickets. We actually have the most number of counties that we sell tickets to compared to anybody else in Major League Baseball. I think it's over 450 counties that we sell to. So pretty cool things happening on the business side with our fan base. Speaking of which, we've continued to have great engagement with our fan base, even while we're in the midst of this pandemic and have seen some terrific results in the form of social media engagement as well as other offerings that we have there. We believe, again, we're well positioned for that. And we also think that this is really a result of some of the work that we've done over many years, not only with Major League Baseball and the Major League Baseball Advanced Media, which really started about 10-plus years ago and helped usher in great digital innovations in Major League Baseball and the online platforms, but also for us, we were one of the first teams to adopt mobile ticketing. And ultimately, the results of that mean that we've got a lot of fans that are already used to consuming and engaging with us in all of our digital content offerings. There's some great results of social media content that's happening. And we ultimately think we're going to have a good chance of monetizing these and doing really well with all of our social media content. Let's look forward a little bit, let's look to 2021. Obviously, in the midst of a pandemic of 2020 and some of the challenges, we obviously want to look forward to 2021. We feel like we're in a really good position for 2021. And in fact, if you look at some of the other indicators for our business, one of which, really important to us, is ticket sales. How are we doing in ticket sales? Well, in the midst of a pandemic, we sold over 1,000 new season tickets, which is really remarkable. We think that it actually -- that's a pretty big achievement. And I wouldn't normally call that out, and we wouldn't normally put that on this particular Investor Day presentation. But I think it's substantial enough and shows you that even while the pandemic is going on with the excitement of the team and all the looking forward to, we're actually doing a really good job of selling tickets. We also are engaging with our corporate sponsors in a meaningful way. We've been able to retain a bulk of their revenue for the 2020 season. And looking forward, we think going into next year, we're well positioned with corporate partners and believe we should be able to return to pre-COVID levels for our sponsorship revenues and associated. So I feel really good about 2021 as we sit forward. So overall, 2021 has a lot of great things going forward. Far left of the screen there, you can see that one of those is that we're going to be hosting the 2021 All Star Game. So we've got a lot of work on that ahead. We've been already actually actively working with Major League Baseball on that and feel really good about what that event represents for us. Also the team itself, team itself is in really good shape, as is the Battery. The Battery is actually doing quite well. In fact, it's got some restaurants that are today, reaching levels that were higher than when COVID came. So some of the results that we're seeing in the Battery from a sales level are really indicative of how Atlanta and Georgia are responding to this. People are still coming out and they're still doing so in ways that we think we can do so safely. So it's happening, and I feel really good about that and appreciate the support of our local and state governments. As far as financial results, look, I think everybody will tell you that's in the Live Event business that we were substantially impacted. Obviously, COVID is not good for businesses that rely heavily upon people congregating in large gatherings like at a ballpark and coming together. So that hurt us, but if you focus on next year and once we emerge all out of this, we think we're going to be able to return to those high revenue achievements that we were having before COVID came, and we think we're well poised to do so. We also know that COVID actually positioned us to advance some technologies and some other things that will work well for us, not only as we immediately emerge from this but will also help us long term. Things like contactless solutions as you come to the ballpark, being able to pay with digital wallet and those types of offerings, a lot of things that we think are going to be innovations that will succeed and ultimately help us achieve higher yield and higher opportunities for fan engagement and fan experience. So overall, what I'll tell you is the team is looking great. We have a great team on the field. We've signed some of the young talent to long-term contracts over the past year or plus. We've got some returning great players, Freddie Freeman right there in the middle. And obviously, we're going to complement that -- continue to complement that with some key acquisitions. Alex Anthopoulos and his whole team have done a remarkable job, and we're well poised to have success on the field for a long, long time to come. Off the field, the Battery is a success. It's a great rendering here of the Thyssenkrupp complex and that Phase 2 that I mentioned earlier. And the occupancy rates of not only that but also the rest of the Battery have been going up and we've actually got some new offerings and some new openings here in the Battery that have been going on for the past year, excited to have those fully up and going. So really, really good stuff. One of the final things that I'll mention is The Mets, not just because they're in the NL East, and they're a foe of ours on the field, but off the field, they just went through a transaction. And that transaction resulted in, I think, a record multiple of revenues. And we certainly are watching that closely. I hope you are, too. We actually have a lot in common with the total revenues of The Mets. And so you can make your own determination about what the value of the Atlanta Braves is as a result of some of those recent transactions, especially including The Mets. I want to thank everybody for participating today in this unique way. And I will tell you that we are poised to return and have a great year next year, not only on the field, but off the field well. So we're in a terrific position with all of our business, and I think that we're in long-term success here. Thank you.

We owe our CEOs a huge thank you for putting up with our shenanigans. [Presentation] [Break] Thank you.

It's Courtnee again. Please turn in to the FLS displayed on your screen and included in our slide deck.

[Audio Gap] It should be a time of reflection, a time to be kind to those around us. [Presentation]

There are some traditions that must go on, and he earns it every year.

We hope you enjoyed our Liberty Trivia and the best of my man [ Foama Faye ]who is not over their staycation. Trip has been looking at travel's progress in stages. To date, the U.S. and Europe's progress through these phases has been fluid. However, we can all hope that recent vaccine developments creates the potential to fast-forward to stages 4 and 5. When we were in the decline stage at the peak of the pandemic, we went out and transformed the capital structures at both Liberty Trip and Trip. At Liberty Trip, we retired the inherited margin loan and brought in a key strategic investor. And at Trip, we both strengthened liquidity and cut costs. And as we moved into the plateau hostage, Trip leveraged its strength and its credibility to build safety and assurances about where you could travel at what time. This brand building and reputation assuring exercise, I think, was beneficial both to travelers and to Trip. As we move to Stage 3 and travel starts to emerge, we expect there will be shorter trips made on shorter notice. And again, this will probably play into the strength of Trip as a trusted adviser. RVs and campers have been a hit, we'll check back in 2022 to see what the demand for them is then. As we look ahead, business travel may be permanently reduced. U.S. residents logged 460 million business trips in 2019, but business travel today is hard and remains depressed. Going forward, this may be a case of Rosie the riveter if you can work remotely, if you can be productive with virtual meetings, will you travel as much? Our belief is it's not likely. The days of the road warrior may be behind us with 55% of survey responded saying they plan to reduce their corporate travel in 2021 by at least 50%. We will see what happens in 2022 and as we go forward. But business travel is the smaller piece of the travel pie. Last year, there was $1.1 trillion spent on travel, $800 billion of it was spent on leisure. We believe there is demand for leisure, and that will return. It may in the short term, look different. It may be more quick. This year, it's expected that most Thanksgiving travel, for example, will be a day or 2, but Trip is set up well to meet the leisure travel needs, however it changes and however it moves in the future. Trip has not been standing still during this pandemic. Steve will give you more details on it shortly. But Trip has used this time to build new revenue opportunities, including trip recommendation, insurance, and a coming subscription service. Thank you. [Presentation]

I'm going to talk to you today about TripAdvisor. TripAdvisor help unleash the full potential of every trip. We are a global travel guidance company. I co-founded TripAdvisor 20 years ago with the goal of helping everyone travel in a way that's magical, leveraging the advice, the insight, the opportunities available from millions of other travelers who have been there and done that trip before. What you see is an incredible marketplace. We have 400 million unique users each and every month coming to TripAdvisor looking for that insight for their travels. What they find is close to 1 billion reviews and opinions and photos, amazing insight to help them plan to a that magical trip. They're looking at information about over 2 million accommodations, 4 million restaurants, hundreds of thousands of different things to do, all with the goal of having a terrific vacation. We have the demand, and we have the supply, and this feeds into a wonderful feedback loop. Travelers come looking for great insight, and they find it on the TripAdvisor site with the content that we have. They then go looking for suppliers who can meet the needs, places to eat, places to stay, what to do. And we send leads to those clients. The traveler then comes back, reports on their vacation, writes more genuine, unbiased content, posts photos so that yet again, more travelers can find more of what's good out there. We reach travelers at all stages of their travel journey, from the discovery, where should I go, through the research, through the planning, whether you're a light planner or a heavy planner. And then you move on to the comparison, which exactly hotel is right for you on this trip? Then through the booking process, and then you're on vacation, and you are experiencing this trip of a lifetime. What this amounts to is an incredible influence in the travel industry. An Oxford economic study reported that we influence $0.5 trillion in activity in the travel sector, over 2 billion vacation nights and over 433 million trips taken. This is an incredible amount of scale and of influence. And that's what's really helped make TripAdvisor a household name, a brand name amongst consumers and everyone in the hospitality business, all around the globe. Now COVID times have certainly challenged us. What are we doing to navigate this challenging backdrop in 2020? Traffic, of course, went straight down. April was our low point. But since then, it has been recovering month-on-month. Summer saw a very steady recovery, some plateauing in October, November. And with medical developments that are on the horizon, we foresee a strong rebound in travel, especially in the areas where TripAdvisor excels at, namely, leisure travel. Talk to your friends, we feel that pent-up demand to get out and go somewhere. And when travel recovers, when people feel safe to travel, it's coming roaring back. Even in the middle of a pandemic, TripAdvisor has more than held its own in terms of the world's most popular travel site. We remain #1 in the category. So let's talk about for a moment, how we are helping our various stakeholders throughout this pandemic and preparing for the next phase? For our consumers, of course, safety is #1. Nobody is going to travel when they don't feel safe. And until a vaccine arrives, we want to make sure that travelers have as much information and are as comfortable as possible when planning that next trip. We launched our Travel Safe initiative. Over 120,000 hotels and restaurants and attractions have uploaded information sharing with their potential audience every everything they are doing to help their traveler, their potential guest feel safe in their hotel, in the restaurant, on the trip in general. Super successful, both from the supplier side, the free for suppliers as well as the travelers. After all, we are a guidance company, a travel guidance company, and we want to provide the best possible information to travelers all around the globe to make them feel safe, their #1 concern. Well, we aren't just addressing COVID, we are looking into the a future. We are continuing on our clear path to present a One TripAdvisor Vision, helping a traveler plan the trips that really matter to them. We cover the whole spectrum. We're helping in the design of the trip. We're helping taking the trip. We're helping the experiences, the hotels, the whole thing becomes that trip that you need have the best advice in, and that's what the One Tripadvisor Vision is all about. We're continuing our efforts on multiple devices. So after a while, we will be releasing our new mobile app, a key development in our overall future as the app is not only engaging when you're planning, but a critical necessity when you're actually on the trip. We've also rolled out some new consumer -- direct-to-consumer products, and I'll tell you a bit more about that later. And we have a brand, a new brand that is repositioned to capture the excitement of TripAdvisor, to capture the excitement of travel. We look and say, what's good out there because there's so much bad news in the world these days. But travel, travel is a great connector, travel is a wonderful emotional connection that humans have all over the globe. And so we rolled out our new brand positioning, there's good out there. I'll let you see it. [Presentation] And last, but certainly not least, we're about to roll out a great new subscription product. You can think of it as a premium club for travelers who are looking to get extra value, special treatment to help make this vacation an amazing stay. Think about other subscription products you know, how loyal that audience becomes. And we're aiming for the same thing with TripAdvisor. Discounts on tens of thousands of hotels, special treatment, free upgrade if available. It's the things that everyone can remember about their trip as well as discounts on all of the attractions and tours and activities that we sell on TripAdvisor. As an annual subscription, our audience belongs to this club. Now if you think about it, we have the demand for a product like this already on our site. Those north of 400 million unique users, they're coming to our site to plan that magical trip. And if we get the math right, if we are able to show a traveler a discount, a perk, a benefit that they can get on this trip that more than pays for the subscription itself, we think of that funnel of the hundreds of millions of users, taking trips that really matter, enrolling them, getting them to subscribe to a travel club that will help make their vacation better, will save them time, will save them money, and will make for a more delightful experience. We do the math, and it doesn't take a high percentage of our current audience to make this a wonderfully successful product. But again, it's all about the traveler. How do we help them take this trip? How do we help them save an amazing amount of money, get some perks, make the trip really special. And of course, with any program like this, we'll be adding more and more to it in terms of perks, benefits and other things. Moving on; to our partners. Some great progress in terms of what we're able to do with partner-facing activities. First, with COVID, we absolutely had to recognize that many of our partners were in a world of hurt. So we immediately granted several months of free activity for the folks who were already subscribed on our subscription products. Then we said, well, what comes next? Well, these folks need to help understanding when the best time to reopen, to extend their hours, to take more guests. And so we provided actionable insights to our audience. In order to help them recover, and as they recover, so does the whole industry. And then because the team also has grand ambitions to help more and more hoteliers and restauranteurs throughout their life cycle. In a post-COVID world, we were hard at work and launched 2 additional products that recently came to market in our Hospitality Solutions unit. So with Menu Connect, we offer the ability to publish restaurants, to publish a menu throughout the world, easy one stop, just a one button click. Reputation Pro, helping hoteliers improve their reputation on TripAdvisor in other sites. Again, free marketing, great for the hotel, something that they can do even with the limited number of guests they have now, but we're planning for the future. And Spotlight, a business advice product, one that's helping hotels make the right decisions now and into the future, leveraging the sales channel that we already have in building -- in helping hoteliers all around the globe. And then to our shareholders. When the pandemic hit, like many other companies, we sprang into action. We immediately said, what's this going to do to our business? How do we plan for what could be a lengthy recovery? And we took immediate action on our fixed cost structure. We pulled out over $200 million costs in calendar 2020 alone with a run rate that's higher than that. We immediately shored up our liquidity, renegotiating our bank line and taking an additional $500 million in debt. We needed to make sure we had the strong capabilities to withstand a recovery, no matter how bumpy it might be. And we've seen some bumps, but we were actually prepared for this level. So strong liquidity, improved cost structure, and we continue to invest in the products I just talked and more, driving our investment future for these growth opportunities. When we look at it, we say we are on a wonderful track now to be able to grow as a company on a lower cost structure, so that we'll be able to regain our profit abilities even before our top line regains to 2019 levels. And what you see here is in our Q3 EBITDA numbers, we show exactly how that fixed cost structure that we took care of, or that we lowered, and the variable cost structure that is involved in our performance marketing immediately can reflect the current demand environment, so that we were able to turn a profit, an EBITDA profit in Q3. So again, when we look at our growth, we look at a multitude of diverse revenue opportunities. Our hotel category, what built the company remains strong in our auction, in our B2B products. Our display and advertising capabilities, we have a lot of traffic, and we continue to grow our media in our endemic and nonendemic and now we're adding this awesome new subscription opportunity. We launched Reco, our trip designer product earlier in the year, helping travelers plan an amazing trip with the advice and expert advice from trip designers. And now with the subscription product coming in a couple of months, we'll have an opportunity to help our travelers with more value opportunities throughout the year or and, of course, the renewal. Experiences remains one of the best opportunities online. It's one of the last ones to come online. We have a leading position both in supply and demand and doing the right thing when you're on vacation is absolutely part of having that full considered trip that really matters. Dining, we have our restaurant reservation business in Europe, South America and Australia. And of course, we have a thriving media business on TripAdvisor, which covers the entire world. Other includes some of our other points of business, including our joint venture with Trip.com in China, tapping into that potential, a quite powerful market. When you look at how this has moved over the years, we see that we've gone from basically a hotel only company. And in 2019, our revenue was much more diversified, and we expect that trend to continue. So to finish, we look at travel rebounding when we have a vaccine. As these medical developments emerge, the pent-up demand, we think, is going to be tremendous. We're in a wonderful position to capture that. We're already the world's largest travel platform with all of our traffic. We have such brand trust with consumers that people, of course, are still coming to us to figure out where to go, what to do, where to stay. We're launching a major new value proposition in terms of our subscription product, a whole new potential for revenue growth. And the TripAdvisor brand, reinvigorating it with our -- There's Good Out There campaigns, primarily on the site, expanding off-site as we can. With our flexible cost structure, with what we've done internally, we're in a very nice position, so that we feel as TripAdvisor and the industry comes through the pandemic, we are in a tremendous position in order to achieve our objectives to help even more travelers all around the globe. Thank you very much. [Presentation] [Audio Gap] SiriusXM and LSXM have a lot of other good investment opportunities. So front and center is probably those, not thinking about how to grow our live stake.

All right. Moving on to the Braves and a sports question. The Braves broadcast deal still has a ways to go before it's up for renewal. But given some of the challenges that the RSN business has experienced, how do you think distribution for the Braves and regional sports in general of all heading into that renewal?

Derek, do you want to take a shot at that?

Sure, sure. Thanks. So what I'd first do is probably remind people that we have among the largest geographic television territories in all of sports, some 14-plus million broadband homes. And when you think about it, you actually go back a year or 2, people were commenting about the length of our deal being a negative. Perhaps right now in this marketplace, as the marketplace grapples with the changes and stabilizes the length of our deal, all of a sudden now turns into a positive. I would say long term, there's huge value, continued value in sports content, live sports content. And I think ultimately, whether it's direct-to-consumer or other opportunities for distribution, I think sports and, in particular, baseball with 162 games in the regular season, with that amount of sports, represent a terrific opportunity. And I think it's -- we're very bullish about the long-term projections there.

Great.

So maybe just kind of continuing in that theme. There's another question around -- a larger question around sports. So despite sports coming back with Q3 ratings -- Q3 ratings, at least in the U.S., have been dismal. Are sports dead? Or do you think this is just the temporary effect of stacking sports content all together, the lack of fans at venues, making it feel like the preseason and politics that bled into sports? You've said previously that sports is the glue that holds the bundle together. Does this still hold?

John, I think they're -- first talking about your quote, about sports being the glue, maybe you want to take a cutter. And we might have opinions from Derek and Chase and myself as well. But why don't you start us off?

Well, sports and sports fans have very strong affinity for their teams for their involvement. Now the question really is what percentage of television viewers does that represent? Because it varies from team-to-team and market-to-market and sport-to-sport. But historically, that affinity has been so strong that it would lead consumers to shift from one broadband or cable supplier to another, and therefore, gave the sports rights owner a lot of leverage, because nobody wanted to be without it, and so everybody essentially would carry it. And that continue continues to be largely the case today. Typically, carriage disputes in our industry, in the cable industry, usually don't get settled until the eve of the first major NFL game or a major baseball game or a baseball season. So it's still very powerful programming. I don't want to say it's not. However, the cumulative effect of all of the sports in the industry has driven the cost of the big cable bundle, so to speak, to a very high level. And those businesses that tried to do it all, tried to carry all the sports in their basic service like DIRECTV, ended up with very high prices for video only, and to some degree, represented a reason why consumers started to abandon the video platform, the big bundle and go to various streaming and direct consumer services. So it represents virtually a tax on the homeowner or the television viewer. When that bundle breaks apart is uncertain. It's certainly eroding, and we're now to the point where probably 70% of households no longer receive the big bundle by satellite or cable. But instead, put together their television viewing from a potpourri of other sources. That trend will continue. And the question really at what point will some of these sports start to go à la carte to the consumer. And we'll certainly see it evolve that way as big tech decides to play around with some professional sports perhaps as a marketing tool or as a differentiator. So I think it's a process that will continue. But sports continues to be a very powerful form of programming worldwide, I can say.

Chase, maybe you would want to add something?

Chase, I think -- we can't hear you. There you go.

All right. Well, maybe while Chase is calculating, Derek?

Hello.

There we go. There we go, Chase. Thank you.

Okay there. We've got Chase.

I guess what I'd say is I think what you clearly have is sort of an evolving situation where you have entertainment programming, which is essentially nonlive programming or live programming, which is sports, news and events. In Events, Academy Awards, Grammys, some other sorts of events. And I think there's an enormous -- I mean in many ways, you look at the power of news, certainly going through political cycle like this and sports, is still the most popular programming out there. And so I think what you have is the bundle really becoming the core of the bundle and the value of the bundle really becoming sports news -- live bundle, essentially, sports news and events. And people being able to get their entertainment content elsewhere. And I think that is sort of the dynamic that is sort of evolving in the business worldwide, probably more advanced in the U.S., but essentially evolving worldwide. So I think the power of sports will still have an enormously important place. But I think that bundle is going to look different as people get their entertainment, nonlive programming in one place and live content elsewhere.

I guess, I'd finish by saying, I agree with both John's comments and Chase's comments. But if you look at the ratings, for example, at F1, early, they were quite good. And towards the end, they were less good, largely because there was a glut. And I think you pointed out the question or point out many of the factors that are going on, and a lot of them are situation-specific. Overall, will be up at F1, but a lot of other cases where they played into the glut and think about what you could be watching in October and November at the same time, just a massive explosion of programming against the political scene both on the court or on the field. And in our nation, all of these cause a lot of other choices and -- or people who chose to not watch. I think a lot of that will stabilize. You get back to the regular seasons, you get back to regular schedules, I think a lot of the viewership will return.

Okay. Thank you. So moving on to Liberty TripAdvisor, this one is for you, Greg. The Certares preferred security has a put right on the 1-year anniversary payable in cash or stock. How are you planning to eliminate the risk of pronounced dilution in the event they decide to exercise the put? Are you trying to take up the security ahead of time to avoid the risk? And if so, are you frustrated with the pace of M&A discussions around TripAdvisor?

I think our partnership with Certares has been great. It was put in quickly during sort of the absolute teeth of the pandemic. And we gave Certares that right put, which then has a 6-month cleanup. We have 6 months to remove them as a way to give them optionality in the partnership. I don't believe they're interested in putting. I don't believe that's a real risk for us, that partnership between Certares and Trip. And Liberty Trip has only grown. And I believe they, at Certares, are as bullish as we are about Trips' prospects and, therefore, Liberty Trip's prospect. So I don't see that as our biggest front and center problem. I'm not sure what M&A discussions you mean by Trip. I think we're very bullish on the prospects for Trip as it -- as the -- we exit the pandemic, leisure travel comes back and some of the new opportunities that they put in place such as recommendations and their subscription service rollout. Both Certares and Liberty Trip are quite bullish about Trip's prospects.