Inside Line: Transcriber broken or Carey was drunk

Here is me thinking being a ‘Formula 1 Supremo’ entailed barking orders, his way or the highway feared by all, wheel-and-deal, raking in billions, answerable to no one… How wrong I was!

After decades of Formula 1 dictatorship under Bernie Ecclestone’s reign as Supremo I must admit I thought that’s what was on the job description

So when Chase Carey and his two lieutenants took over at the hem, my thinking as a business dummy was: cool these three guys will call the shots with the buck stopping with the man with the big moustache. Wrong again!

Now that the honeymoon is over, the reality has just dawned on me: Chase is just a captain and above him are brigadiers, generals etc. But more than anything he is answerable to a board, and members don’t give two hoots about Formula 1, the passion, the history – show me the money is the name of the game way above Carey’s head.

And that’s where the pressure is. While fans bicker about Max shoving Esteban, or Fernando’s Indy foray, or Mercedes dominance, a week ago the real business was happening off-track where Carey faced tough questions during the Liberty Media earnings conference call.

This is a week old transcript freely available on the web, but I felt that it has so much good info in it – among the inexplicable mumbo-jumbo where you are forced to try and read between the lines –  shedding light on exactly the pressure that Carey is under as just another brick in the Liberty Media wall.

How different to the Ecclestone era when the small man made the big decisions, answerable to no one for most of his tenure at the helm.

Reading through this intriguing transcript, it is quite clear that the pressure on The Three Amigos is intense, with the Big Amigo (Chase) having to deliver not just for the fans, but for the investors who are now expecting returns but concerned by the lack of progress in their investment almost two years down the road.

This is a long read – often totally incomprehensible and ether ‘auto-transcribe’ gone wrong or a ‘drunk transcriber’ or (unlikely) a drunk Chase Carey but if you persevere it gives an idea of where the land lies in Formula 1, the way forward, the expectations, the deadlines… read on! Or decipher on!

Liberty Media Corp (NASDAQ:FWONA) Q3 2018 Earnings Conference Call November 8, 2018 11:00 AM ET


  • Courtnee Chun – Senior Vice President of Investor Relations
  • Greg Maffei – President and Chief Executive Officer
  • Mark Carleton – Chief Financial Officer
  • Chase Carey – Chairman and CEO, Formula One


  • Ben Swinburne – Morgan Stanley
  • David Karnovsky – J.P. Morgan
  • Vijay Jayant – Evercore
  • Jeff Wlodarczak – Pivotal Research
  • Bryan Kraft – Deutsche Bank
  • Amy Yong – Macquarie
  • Jason Bazinet – Citi
  • Brandon Ross – BTIG

Below are extracts from the transcript related to questions on Formula 1 that took place during the conference call.

[Warning: As mentioned at times the transcript is incomprehensible, difficult to tell if it was transcriber messing up or speakers getting tongue tied or both… ]

Greg Maffei: Looking at Formula One Group, great 2018 with exciting outcomes, Lewis Hamilton securities 5th Championship. We still have 2 more to go, and we expect excitement because the constructors’ championship is still on the line. In sponsorship, we signed data rights deal during the quarter with ISG to produce live Formula One betting offering. As we’ve mentioned many times before, this business is hard to compare on a quarterly basis, this quarter we had 8 races versus 6 in a comparable period in 2017. So we might just take a longer-term look. With that in mind, we are revving for an exciting 2000 season and are quite excited.

Mark Carleton: Thank you, Greg. At quarter end, Formula One Group had attributed cash and liquid investments of $106 million excluding $45 million of cash at F1. Formula One Group has attributed public market securities with a market value of approximately $4.4 billion as of August 7, including the inter-group interest in the Braves Group and our stake in Live Nation, with $2 billion of attributed debt excluding the debt at F1.

Braves Group had attributed cash and liquid investments of $78 million. At quarter end Liberty SiriusXM Group had attributed the principal amount of debt of $7.6 billion, includes $6.6 million of debt at SiriusXM. Formula One group had attributed principal amount of debt of $5 billion which includes $2.9 billion of debt at F1 and Braves Group had an attributed principal amount of debt of $626 million.

F1’s total net debt-to-covenant OIBDA ratio was defined in their credit facilities calculations was approximately 6.5 times, as of September 30, as compared to a maximum allowable leverage ratio of 8.75 times.

Carleton: Race calendar variances between 2017 and 2018 resulted in income from 22 races falling in the trailing twelve months

At the calendar, race calendar variances between 2017 and 2018 resulted in income from 22 races falling in the trailing twelve months in the covenant calculation income from only 21 races will be captured in the trailing twelve months for the year-ended 2018. So we expect the reported leverage ratio will increase accordingly at year-end based on the race accounts.

We’ve set a target total net leverage ratio for Formula One up of 5 to 6 times, bank covenant OIBDA, please note that these leverage ratios are for the Formula One business and not for the Formula One Group overall.

So with that, I will turn over to Chase Carey to talk a little bit at Formula One.

Chase Carey: Thank you, Mark. Lewis Hamilton secured his 5th World Championship at the Mexico Grand Prix at the end of October, an outstanding achievement which puts him on par with Formula One legend Juan Manuel Fangio and now only behind Michael Schumacher in the all-time list of championship titles. Congratulations to Lewis. We still have two more races in the 2018 season, in Brazil this weekend and then Abu Dhabi during Thanksgiving, and we expect to see continued excitement and drama among the drivers and the teams will be focused on securing final placing in the constructors’ championship.

To-date the 2018 season continues to impress in a number of areas. Live attendance in aggregate is up 3% year-on-year at the 16 tracks with comparable data from 2017. And we’ve had a great response to the enhancements such as the fans owns, merchandising, track tours, hot laps, champions club, paddock compatible club. Television viewing on race day on year-on-year on year is down 5%, however that is largely due to our move from free to Pay TV.

Carey: We’re especially pleased with our performance in our two key growth markets the U.S. and China where viewing figures, are showing uplift of 50% and 265% respectively

In Italy, excluding Italy, our television viewership is up 1% year-on-year and our Saturday viewership for qualifying is up even more. We’re especially pleased with our performance in our two key growth markets the U.S. and China where viewing figures, are showing uplift of 50% and 265% respectively.

For the digital engagement, while still early on our – in our initiative to upgrade and expand our digital platforms, our interactions during race week are up 31%, and our video views are up 66%. And we continue to be for the second year running the fastest growing sport on social media. We now have 18.1 million followers on our social platforms and counting up about 50% on a year ago.

We finalized the 2019 calendar with the renewals of the Japanese and German race contracts. And with that, 2019, will replicate the 2018 race counter in both number of races and locations. We’re already looking forward to 2020 and are thrilled that Formula One will add the newly announced Hanoi race in that year. This location is part of our strategy to extend our reach and brand in Asia and Vietnam is a dynamic country with whom we are excited to partner. We’re in continuing discussions around additional opportunities to develop the race calendar including the previously discussed race in Miami.

Speaking of which, we held our fourth and final fan festival of the year in Miami which overlapped with the U.S. Grand Prix in Austin in October. The fan festival featured a live car run down Biscayne Boulevard which attracted an estimated 80,000 spectators which was featured heavily in social media. That weekend kicked off with an amazing stunt by Red Bull with an F1 car driven by F1 commentator and former racer David Coulthard doing donuts in the top of a high rise. We haven’t seen this video encourage you to seek it out.

Carey: We know that offering compelling content on multiple platforms is key to reaching our existing fans in attracting new ones

As we look toward the 2019 season, we will continue to host fan vestibules as a way to engage and attract fans and build the F1 brand currently and anticipate expanding our fan festivals in 2019. We made further progress and our other main commercial areas. On the television part of the business, we completed additional renewals that matter support our targets on both free and pay television platforms and include digital opportunities. We know that offering compelling content on multiple platforms is key to reaching our existing fans in attracting new ones.

For our Nation OTT product, we launched on mobile platforms in September, which further enhance is the offering and we look forward to a full commercial launch in 2019. We will continue to improve the product and content offering in the off season and over the coming years, but early response since our mobile platform launch has been positive.

We just completed the second event in the F1 New Balance e-sports Pro Series in which drivers race on F1 2018 the official game of the FIA Formula One World Championships which was released on August 24th.

This year and 9 of the Formula One teams have entered teams giving the drivers a once in a lifetime opportunity to race with the backing of some of the most prestigious names in motor sport racing following an intensive qualifying and draft process. The two events have been stream live via Facebook and broadcast last globally on selected TV networks. Our Esport events this season have accumulated over 67 million impressions and 13.1 million views on social media about double what we were – where we were the same time last year through the semifinals.

Carey: We continue to make progress on the motorsport side of our business to improve competition, action and unpredictability

We look forward to the grand final later this month where the winner will receive $200,000. Regarding sponsorships, on our last call I talked about our philosophy and how we approach both new and existing sponsors and the focus on building a broader array of offerings to service the needs of our partners and provide a real connection with our fans and support. On this called like to focus on the many wins we’ve had here in 2018, some of which include renewals of existing sponsors DHL and Emirates with multi-year deals and expanded offerings.

Our first ever regional sponsorship deal with Petronas, partnership with Amazon, Web Services entering into sponsorship and data rights commercial partnerships with ISG to produce an F1 betting offering, in a listing New Balance and [Fanatec] as sponsors of the F1 to balance Esports pro series. I point out that many of these deals were done during 2018, and we look forward to receiving the full bettered by these new contracts in 2019. Sponsorship will be a continued area of focus in 2019 and we will enter the year with great momentum. The F1 value proposition to sponsors will continue to strengthen as we expand and tailor the offering, grow the fan base and reach new audiences.

We continue to make progress on the motorsport side of our business to improve competition, action and unpredictability. We’ve agreed on changes to the aero regulations of the cars that will be introduced in 2019, which could lead to an increase in overtaking and build excitement on the track for next season. The unpredictability is amplified by a number of changes to the driver lineup going into next season.

With Fernando Alonso retiring Daniel Ricciardo moving to Rano, Pierre Gasly taking his place at Red Bull long side Max Verstappen, Charles Leclerc heading to Ferrari and more. They are eager to see what this next season has in stored. And we’re focused on a larger list of sporting regulation changes to further improve the sport for our drivers and fans.

Carey: With the Concorde Agreement, we’re making progress regarding the broader set of changes to cost structures, revenue distribution regulations and governance

I am often asked about the so-called Concorde Agreement, we’re making progress regarding the broader set of changes to cost structures, revenue distribution regulations and governance. During constant constructive discussions with the teams and at the end of the day, our interests are aligned. We agree on the long-term objectives and we’re working towards finalizing the details for the 2021 season.

Our team is busy working on all these initiatives with the majority of our hiring for corporate functions complete, we now have the organization largely in place it will continue to build and grow Formula One for long-term success.

Ben Swinburne: Thank you. Good morning, guys. Chase, just going back to your comments on the digital business and streaming, is 2019 a year sort of full steam ahead in terms of marketing and programming that product? I think this year – this year launched it at the beginning of the season sort of had fits and starts and you’ve been getting the tech ready and the devices ready is 2019, a year that you think this business really can get hit its stride from a growth perspective or do you see it is still something that’s a multi-year project, is there any color on that since I think it’s a big opportunity for you guys and then I have a follow from it?

Chase Carey: You’re talking – you’re talking about OOT product?

Ben Swinburne: Yes. Yes, exactly.

Chase Carey: Yeah. Okay, yeah. I guess – I think that’s right I mean it’s a look – it’s a multi-year project to get it to where we believe it can get to. But I guess I’d say this year ended up being probably almost a beta project to me and we didn’t launch it at the beginning of the season, I think first, more like ours to really achieve its potential, it’s a season by more than up more than a sort of race by.

We have more technical I means as do a lot of players who have gone into it initially, in the more technical blogs and the like I think we probably were not surprised, we hoped they wouldn’t be there but they were. And so I think really this has been –I mean to me there are there steps in getting in building this out, first is the technology, the technical platforms got to be reliable, I mean customers, just don’t they don’t tolerate glitches.

I think second, we’ve got to find content offering me people buy content that are by technology, so the technical got more but then we got to define the content offering. And we got to sell the market, we didn’t really do the latter this year because we were focused on. You got to get all most of the things done sequentially, got to make the technology platform stable. Tell the content story of and sell the market it.

Carey: Next year will be the first time we really sell and market it properly

So I think 2019, will really be the first time we bring it to market as up as a commercial proposition to market and sell it. And I think we feel good about the technological platform, the mobile, the adding the mobile platform is critical I mean so much of people follow it today, not on desktops or phone got on. And on mobile devices and we didn’t get that in place till September, I think the content offerings improved it will adding some of that the realistically the content is probably over the next couple of years, we’ll continue to add breadth and depth in terms of data and archival products.

But we really next year will be the first time we really sell a market it properly. So I’d say this was a year of getting, if ready to more commercially launch but next year to year one, this is not a – this is a multi-year proposition and we’re still, as we roll it out clearly it’s going to rally different in different countries and in some it will – will be fully an aggressively push it actually one of the really exciting opportunities we’re developing as with some of our traditional broadcasters, some of the deals we did, renewals we did for 2019, we’re sort of partnering with them to market and promote over the top platform in a way as to sort of working with them as opposed to against them. Because I actually think it is compatible and I think it I mean this is a product targeted at your hardcore customers who will pay more for a richer experience than the basic linear one. And I think it benefits everybody to find a way to tap into the demand that those products that those customers have for the product.

So it will continue to certainly evolve, certainly it’s not going to be early days next year but along with the wave thing next year really will be the first time we sort of take it to a market – take it to market as a commercial proposition, again it will vary by country how we take it to market.

Carey: The business model is not what it can or should be

David Karnovsky: Hi, just a question for Chase. How does Force India is entry and exit administration potentially impact your view not only on things like budget caps but also on how profitable and financially healthy the independent F1 team should be in general?

Chase Carey: I think it probably reinforces. What we’ve been saying that the initiatives that we’ve proposed and we’re discussing with the teams on revenues and cost are really of two goals. One is to make the sport better, improve competition action, as we said. But others to make it a healthier business model for everybody right, I think today, the business model is not what it can or should be. And I do that we need to address revenues and costs and teams agree with that the details – the details are always going to require hard work and compromise to find the right ones because there are 10 different perspectives there are – there isn’t one on the details. But I think everybody agrees in the goals and I think the challenges of Force India sort of reinforce.

That the importance of making it healthier than I think we can then I think actually realistically it’s – I think we can make it a healthier business model and a healthier sport, so it’s laces where tacking and dealing with things like cost is actually not compromising, the quality teams, the quality competition I think it’s actually enhancing it, for it. It’s just the challenge is sort of breaking old habits and recognizing where people are today to get there. But I think we need to make it healthier for them both healthier for the teams that are in it and I think it makes them it a much more exciting an enticing proposition for some of the potential new entrants that we think potentially could race on the track with us, that would be a great addition for fans. So I think the – I think it just reinforces the importance of improving that business model from both perspectives.

Carey: We’re in a fortunate place right now that we have more places we want to have races, then we can raise, and that’s a good place to be in

David Karnovsky: Okay. And then just a follow-up, is there any update you can provide an integration for the British Grand Prix, first 2019, is it – is it feasible to move this race to the other track or street racing London and then separately is there any update you can provide in where you stand with regards to Miami? Thanks.

Chase Carey: Again, I think an ongoing negotiation, we’ve said the best this is for it to seem to like negotiate in public and I don’t think that’s the healthiest way to deal with things as partners. So I don’t think we want to provide a lot of inside the tent commentary on active discussions, we value the Silverstone race but we’ve got to get to a place that works for us. And then those discussions are ongoing. There are always other options in it, part of one of those we make sure is we’re continuing to develop an array of options. We’re in a fortunate place right now that we have more places we want to have races, then we can raise, and that’s a good place to be in.

We’ll continue to develop those options and you can make sure, we are able to make the best decisions both for fans and for racing and for us as a business all those things matter and we’re actively engaged Miami clearly there and ongoing process a lot of parties involved which is not uncommon when you get to a street race that you’ve got sort of macro parties and micro parties are there instead so it’s just a time-consuming process step to navigate through all of those I guess, I’d say it’s active. I think the fan festival was a help.

Carey: We are certainly the U.S. remains a priority, we’re engaged in discussions elsewhere in the U.S.

I think everybody in Miami thought was a great experience, there was great energy, great excitement of this and the comments being 80000 people and really I think almost all the comments we got were positive and exciting about it, I think really recognized it as a unique world-class event and in sort of help reinforce what we bring, so I think that’s up positive step in it. But it takes time when you’re working through a process like in Miami where there is as many constituencies that we have to deal with.

So we are certainly the U.S. remains a priority, we’re engaged in discussions elsewhere in the U.S. So it’s not just Miami and opportunities but we think Miami you know really could be a great signature event for us worldwide not just in the U.S.

And I guess – yeah I think in terms of where we’re at in the process of really building in some sense rebuilding as Greg said Formula One, yeah I do – I think we do expect 2019 to be a step forward in that sense many ways 2017 and 2018. And if we described it going and we’re sort of foundation building and I think as you go through 2019 realistically we expect 2020 and 2021 also be steps forward.

Carey: We do expect that we start to deliver on the opportunities that exist inside Formula One

So I do think we – I think we actually feel pretty good about where we are I mean early on we talked about coming in with a 3 to 4 year process – 3 to 4 year perspective and the early stage being investment with some of those investments starting to deliver the benefits and then to deliver on the opportunities that we’re building and we do expect those – those sort that come through in 2019 and then again an issues more and others and 2020 and sort of ongoing a 2021, more certainly not going up. We’re not going to get a step forward but clearly we still believe there’s a lot we have a lot of plans we have in place I mean we talk about things like the U.S. and China that are really further down the road as I said OOT is certainly still going to be a very early stage product next year so.

And I think mindset, I also making sure where I think our priority for this business is it continue to be where we’re going to be in 3 years not 3 months and not get sucked into sort of trying to – trying to sort of focus on the prioritize the short term over the long term. I think we believe then the deeper we get into it the more excited we are about the opportunities to grow the sport and want to make sure, we really prioritize building that value over up, maximizing a short term profit opportunity but that being said certainly 2019, we do expect that we start to deliver on the opportunities that exist inside Formula One.

Jeff Wlodarczak: Good morning. A couple for Chase. Chase, in the Concorde Agreement, is that something you expect to get done in 2018 and then given the time to engineer and build the new engines especially for potential new as you manufacture teams. At this point realistically, we probably pushing the engine into 2021, I’ve got a follow-up?

Chase Carey: Yeah I guess [first] on the Concorde. We have been [meeting] in private and I guess I go back to the conversations on discussions we have in private versus public. We’ve told them our goals and in terms of targets and timeline, I’d rather get it done sooner than later though, the challenge is everything we’re talking about is affective in 2021 and usually getting things done there helped by having a deadline that sort of drives that. [Editor: Auto-transcribe wobble or Chase losing the plot, not sure…]

Obviously, if all these changes are 2021, everybody’s like to have it done but there isn’t – there isn’t something that creates up a pressure point to say it has to get done by December 31st, 2018, I’d like to have it done just because I think it’s sort of healthy for us to be focusing on the future. But I think the conversations are good.

We have targets internally but I don’t think it’s constructive for us to try to put out externally target dates that are going to create a different dynamic around those discussions, I think the discussions have been good, I think the discussions have been helpful and I think the best discussions again are ones at this point that we have with the 10 teams as partners and there are ongoing and we feel good about that process and we’ll bring it to a conclusion, in the right way, in hopefully expeditiously but we’re not going to put them publicly out deadlines on it, I don’t think that helps them, helps the process.

Carey: I think we’ve actually pretty well got a path forward for the engines

In terms of the engines and the engine really isn’t part of the Concorde Agreement because really governance dictates how you deal with the engine I mean we can put something in place but the engines always going to have things that are evolving it through. And actually I think we have a – I think we’ve actually pretty well got a path forward for the engines that sort of evolved in many ways through good constructive conversations with the teams in a year ago, we are probably headed towards a – towards a more significantly rebuilt engine.

I think as we got into discussions, I think we – with all the teams, I think we all came to an agreement that the right path was more stabilizing the existing engine and it to a series of sporting and technical regulations that improve competition and help to improve address the economic issues around that, some of those sporting technical regulations are still evolving and they will and again they won’t really be – they won’t be part of the Concorde Agreement, the Concorde Agreement will be will lay out the governance process by which you have you put in place those sort of regulations but they won’t they won’t lay those out.

So actually I think right now, we’re in pretty good path. I mean we agree from early days our goals on the engine for simpler, cheaper, louder more power, let the drivers drive. I think as we went through that we felt, the best it was destabilizing the existing engine and then through sporting and technical regulations trying to achieve tailored, just sort of our objectives through those regulations to achieve what we wanted to achieve and I think we’re pretty well, pretty well aligned on that and the path we’re going forward. And down the road I’m sure they’ll continue to be regulations that evolve with that but I think the engine path is

I think we’re on pretty well agreed to and again continuing to be refined through the regulatory process.

Carey: I think we agreed probably been the most stabilizing for those objectives whether it’s new or existing is stabilizing the existing engine [whatever that means…]

Jeff Wlodarczak: So it’s more evolutionary than revolutionary and do you feel comfortable that you contract outside engine manufacturers through the path engine or on the price cost?

Chase Carey: Yeah I think that’s why the regulations are important. I think what we – I think what we what we really came to an agreement with I think everybody got persuaded by that stabilizing maybe have a new engine. Its sort of every starts over and they’re always unintended consequences out of a new engine. So what is actually I think we agreed probably been the most stabilizing for those objectives whether it’s new or existing is stabilizing the existing engine and to the degree you want to address the economics and things like that, it’s really to regulations because I mean a factor for example that came out of this is die, no time which is testing time, it’s probably as. [Editor: Someone please translate that for me!]

One of the more expensive consequences because it lets you test open ended sort of throw stuff against a wall and tested. So the degree you want to address sort of how much – how much time and money can be spent testing, an endless list of theoretical enhancements, is probably an example of as important as anything any tool to try to make the engines both from a sport, and a competition perspective and a business perspective viable and attractive form, again existing and new players. [Editor: Did anyone understand this?!]

Carey: We have a technology that is miles beyond any anything else out there at any level

So I think the – the intent of this was not just to improve the development path for existing but actually it is develop a path that we think is enticing and interesting for new. And I think in doing it one of things, we want to make sure, is we’re not looking, we want engines to be the engines to be different, the technology in this sport is incredibly important, we are clearly – we have a technology that is – miles beyond any anything else out there at any level, the efficiency of these engines I mean one of the stories that has been told well enough is this new hybrid engine that came out a few years ago, the incredible performance it gets today with – in a much more fuel efficient basis than prior engines.

So I think we’ve want to make sure we continue to have the hybrid engine that was rode relevant today. But at the top of the pyramid in terms of technology that – that in many ways is at the forefront of what’s going on in the world. So I think it’s achieving all the things that I think that part of that is what attracts the right new engine manufacturers into it as well. And then I actually think the process to teams is the way I hope we address a lot of things going forward is that it was collaborative, I think it was constructive, and I think it was much more as opposed to every man for himself in the past, it was much more of a partnership and trying to agree on goals and agree on the best path to get there.

But I do think the path we’re on and we’ve had some discussion with attention to entrance we’re in cars and I think there’s broad agreement that the path we’ve – we’ve sort of landed on for going forward is the is the right path for everybody again is next existing and new.

Jeff Wlodarczak: Thank you.

Operator: And we’ll take our next question from Bryan Kraft with Deutsche Bank.

Bryan Kraft: Hi. Chase had two questions for you. Was wondering if you could give us some additional colour on the advertising and promotion revenue in the third quarter, specifically did the AWS in the Patronas relationships contribute or are those still yet to come in 4Q? And then separately, I wanted to ask you what are the benefits that you’re expecting from the agreement you recently signed with ISG to bring betting to Formula One, and just maybe at a high level, can you talk about the structure of the economics and what it means for Formula One, and what the timing is for rolling out that an across the major markets? Thanks.

Carey: I think betting is… we always have responsibilities that go with it, want to make sure it’s done in a healthy way

Chase Carey: There was some impact been those deals were signed during the – I said on the Petronas you know off top of my head, the ISG, certainly was not we sign during the quarter I think it was probably pretty late into the quarter. So those deals will certainly be much more 2019, you have a bigger impact and much more significant happening impact the 2019 than 2018. But in terms of the actual percentage in the third quarter, I don’t know I think it was but it was sort of at the back end of the third quarter.

I think the betting, I think betting is a – is a we always have responsibilities that go with it, want to make sure it’s done in a healthy way, want to sure it’s done there’s proper integrity tools around it. But I think fans that – it’s clear fans enjoy it, I think it makes it more interesting, makes more exciting, makes as an American I look at in some ways fantasy football which is great enhancement into the NFL. It’s all a form of fun day and I think that type of engagement in a sport widens its appeal to others, makes the experience better and obviously as business opportunities for us.

For us were we’re sort of both it’s both a sponsorship element and providing probably a more expanded an interesting set of opportunities to – to engage with the sport and bet on things that you may not be betting that may not be available and the people I was talking about in the sport today is so it’s not betting on the sport it’s not new. But I think we can provide new and interesting ways, we have to make sure, we have integrity and disciplines around them to ensure that anything one bets on is – is properly oversight and properly sort of policed and maintained.

But we think it’s up, we think it’s a great advancement in a great additional dynamic dimension to the sport that we can both road and develop there’s additional places to go for fans to – fans to bat and we do it recognizing, there are things you have to be aware of and be responsible for when you’re – when you’re gauged in the world the betting.

Bryan Kraft: Does Formula One share at all in the economics from the betting side or is it the sponsorship revenue that – that form and why?

Carey: I think the primary directly we’re not in the betting business

Chase Carey: I think the primary directly we’re not in the betting business, so we are more engaged with opportunities to bet than promoting the betting aspect of it but we’re not in the – we’re not in the gambling, we’re not in the betting business.

Jason Bazinet: I don’t know if this is – for Mr Carey and Mr Maffei but – from the moment you bought Formula One, Liberty stock sort of reacted very favourably. Because the buy side likes the asset they had a lot of confidence in Mr Carey and the broader Liberty team. But every quarter that you guys have reported, I think over the last 5 or 6 have been disappointing even though you’ve been very clear about this being sort of foundational years to build for long-term growth.

So my question is this as we take this step forward as you describe it in 2019, 2020 and 2021, what is a reasonable range of expectations for top line growth? Is it a low single-digit, mid-single-digit, high single-digit like what anything to source or to help the buy side dimensional eyes what success looks like or what failure looks like I think would be quite helpful.

Chase Carey: Greg, because I’ll answer Greg can add anything he wants them. Look I guess I don’t think we’re sort of going to get into prying trying to quantify I mean I guess it’s a form of guidance and where we expected to be. I think we tried to be clear about 2017 or 2018 what were our priorities and in some way, I think people always sort of think once you’ve what you said you going to do something three months later why isn’t it done, and it takes time to put an organization in place.

Carey: Get everything to where it should be an opportunity to grow it

I think equally as you get into a business and I think talked about this a few quarters ago or maybe was last year. Usually, always find a few surprises that you usually know the good thing, so it’s something you find about a race in particular or a sponsor that was had was leaving. In some ways those are opportunities but there are opportunities to fix them, so I think I’m in many ways the ample of things we found early on that we’re working through, all opportunities for us to as we – as we address those and get everything to where it should be an opportunity to grow it.

But our – when I recognize the market always in a really want to step sort of gravitates form the quarterly earnings, I mean that is short term quarter, and not that we ignore it. But I guess we’ve tried to be as clear as we can that our priorities where I get as said – I think I said from the get go where we’re going to in 2020 not where we’re going to where we’re going to be in 3 to 4 years not 3 to 4 months. And we have and we describe the initiatives to get there but I think that – I don’t think we’re going to start trying to have – head down a road of quantifying – quantifying those components, some of the initiatives we announced yesterday the race if you had not made to step into 2020 step not 2019 step, but as we evolve the calendar in 2020.

And 2020 want to be on one of the opportunities and we described the things that can drive the business. And if we feel pretty good about where we are and realistically I think there’s always a challenge when you describe where you’re trying to go again I think it’s a reaction once you’ve described it, and things should in very short orderly process follow behind it. Realistically it takes time to develop take a business that’s really what we came in to, when I said it I think at the investor conference last year, is sort of an organizational startup in a business turnaround and those things don’t happen and whether – whatever expectations were in there in the short term, our focus has been building for 2020, so that and – I think we feel.

Carey: the world’s never exactly as you as you expect it to be

There are always surprises and I think as Greg said earlier, the world’s never exactly – as you expect it to be. But all things considered we feel – I think we feel pretty good about where we are. And but clearly we recognize equally, there’s real work to do in execution to. Now there are some things that are a lot harder than plan and some things where you have an opportunity that we didn’t – we didn’t know was there whether it’s fixing something from the past or an area that is bigger than we thought it may be.

Greg Maffei: So if I could say, I grew all just comment that – we have the market gave a lot of credit it’s right on the block as you rightly pointed out Jason. We appreciate that but sometimes the market can also as Chase rightly point out expect immediate gratification syndrome. We have gone and laid the foundation [a] bunch of things including hiring including building out substantial capabilities, we’ve absorbed places where business may have been ahead of itself.

For example, particularly with promoters and adjusting to make that a better experience, and we’ve done things to set the business right for the longer term, we’ve cleaned up the balance sheet, we’ve driven a lot more flexibility, we think we’re building and the asset that we bought is the asset that we wanted and we think we’re building a seminal sported going to be critical to viewers and liberty for the long term and I think going to happen faster always where I wish would happen faster, I’m sure Chase which is more than I do. But I’m very comfortable we are in the right direction.