stockrowWhat it does
Liberty Media is a motorsport and live entertainment company whose principal businesses are Formula 1 and MotoGP. Formula 1 holds the exclusive commercial rights to the FIA Formula One World Championship, a global car-racing series. MotoGP holds the exclusive commercial rights to the FIM Grand Prix World Championship, a global motorcycle-racing series. Derek Chang is Liberty’s president and chief executive officer.
The businesses sell race-hosting rights to promoters, broadcast rights to media companies and advertising and sponsorship packages to brands. They also sell hospitality experiences and subscriptions to their own streaming services. Formula 1 operates the Paddock Club hospitality program, while MotoGP offers its own event hospitality programs. Both businesses also generate revenue from supporting race series, licensing and services associated with events.
Formula 1 and MotoGP coordinate with racing’s governing bodies, teams, promoters, broadcasters and sponsors. They film events, produce international television feeds and organize the movement of equipment. The governing bodies regulate their respective sports, while independent teams supply the competitors: neither Formula 1 nor MotoGP owns a participating team or contracts directly with its drivers or riders.
Formula 1 is wholly owned by Liberty. Liberty acquired approximately 84% of MotoGP in July 2025. Following the Liberty Live split-off, Liberty Formula One common stock is no longer a tracking stock, which is designed to reflect the economic performance of a particular group rather than the company as a whole.
How it makes money
Formula 1 and MotoGP are Liberty’s reportable motorsport segments. Each earns its principal revenue by licensing media rights, granting promoters the right to stage races and selling sponsorship. Both also earn money from hospitality, other racing series, production, logistics and licensing. Liberty additionally holds minority investments in private companies.
Race promoters generally pay for the right to host and promote an event. They typically retain ticket revenue and may also sell concessions, local sponsorship and certain hospitality. Formula 1 directly promotes the Las Vegas Grand Prix and receives its ticket and other commercial revenue. Formula 1’s race promotion contracts typically start with terms of three to seven years; MotoGP’s typically start with terms of five to ten years. Fees more commonly rise annually than remain flat.
Broadcasters pay for rights in particular territories and languages. Both businesses also sell direct-to-consumer subscriptions: F1 TV for Formula 1 and VideoPass for MotoGP. Broadcast contracts typically last three to five years, and fees often increase during their terms. Sponsors pay for event advertising and other rights, with contracts typically lasting three to five years at Formula 1 and one to five years at MotoGP.
A significant majority of the businesses’ race promotion, media rights and sponsorship contracts specify advance payments and annual fee increases. Revenue and expenses are nevertheless seasonal: Formula 1 generally recognizes less in the first quarter, while MotoGP generally recognizes less in the first and fourth quarters than in the middle quarters. Liberty acquired its MotoGP interest in July 2025, so its consolidated results include MotoGP only after the acquisition.
Customers and how it sells
Liberty’s customers include race promoters, television and streaming partners, sponsors, hospitality buyers and individual streaming subscribers. Promoters include circuit owners, event organizers and government bodies; MotoGP also works with national motorcycle federations. Promoters ordinarily sell race tickets to fans, while Formula 1 sells tickets itself for the Las Vegas Grand Prix.
Formula 1 licenses broadcasts to free-to-air and pay-television operators as well as selling F1 TV subscriptions. Its broadcasters include ESPN in the U.S. and Latin America, Sky in the U.K., Germany and Italy, and Canal+ in France. MotoGP distributes through free-to-air and pay-television partners and its VideoPass subscription service. Its broadcasters include DAZN in Spain, Sky Italia in Italy and Canal+ in France.
In 2025, 24 Formula 1 Events took place in 21 countries, while 22 MotoGP Events took place in 18 countries. Both series operated across Europe, Asia-Pacific, the Middle East and North and South America. Each championship was followed by hundreds of millions of television viewers in approximately 200 territories in 2025. The company’s motorsport operations are primarily headquartered in the U.K. and Spain.
Suppliers and costs
Formula 1 and MotoGP rely on independent teams, governing bodies, promoters and technical providers to stage their championships. Teams build or arrange their racing equipment and fund their own participation. Formula 1 teams secure their own drivers; MotoGP teams secure their own riders. Formula 1 and MotoGP provide services including filming, broadcast production and equipment logistics.
Formula 1 pays teams from a prize fund under the 2026 Concorde Agreement. The fund is calculated with reference to a fixed percentage of an adjusted operating-profit measure, and payments reflect championship results and other principles. MotoGP pays the International Road-Racing Teams Association for services including securing team participation; the association oversees payments to teams, including fixed and variable portions.
Promoters generally operate circuits and stage events, although Formula 1 was responsible for developing and operating the circuit and paddock facilities for its self-promoted Las Vegas event. Both businesses must obtain radio-frequency permits for equipment used at races. Formula 1’s capital expenditures and debt service are uses of cash; MotoGP also uses cash for debt service.
Competitive position
Formula 1 and MotoGP compete with other sports and live events for viewers, attendance, advertising and media-rights opportunities. The named alternatives include the Olympic Games, FIFA World Cup, Champions League, La Liga and Premier League. Neither business identifies an individual competing company.
Formula 1 holds exclusive commercial rights to the F1 Championship until the end of 2110, while MotoGP’s exclusive commercial rights to its championship run until December 31, 2060. Formula 1 also owns trademarks and race footage, and MotoGP owns trademarks and footage of its events. Those rights allow the businesses to license content and pursue infringements. Agreements with teams provide rights to portray the championships using team intellectual property, subject to exceptions.
Our reading: The long-dated exclusive championship rights are a strong source of protection because another provider cannot sell those same championship rights without them. Our reading: The trademarks, footage libraries and team-image rights reinforce that position by supporting licensed broadcasts and other commercial uses. Our reading: These protections do not eliminate competition for the time and spending of audiences, broadcasters and advertisers, who can choose other entertainment.
Growth opportunities
Formula 1 aims to broaden its global reach and make more of its commercial rights. Its strategy includes seeking value from race slots, media rights and sponsorship, as well as developing hospitality and licensing. It also plans to expand how it interacts with fans and improve access to fan data that can be used commercially.
MotoGP aims to increase awareness, expand its audience and grow in markets where it has not traditionally been present. Its strategy includes using greater awareness to support demand for media rights and race slots and to attract more sponsors. MotoGP also plans to improve the on-site fan experience and work with promoters on event production.
Both businesses have products beyond their main championships. Formula 1 holds exclusive rights to promote and commercially exploit F2 and F3 through 2041 and operates F1 Academy, a series for developing young female drivers. MotoGP’s portfolio includes other motorcycle-racing championships, hospitality and licensing.
Liberty acquired approximately 84% of MotoGP on July 3, 2025. Consolidated revenue increased $829 million for the year ended December 31, 2025, compared with the prior year, driven by higher Formula 1 revenue and revenue from the acquired MotoGP business.
- $2.0BFY2019
- $1.1BFY2020
- $2.1BFY2021
- $2.6BFY2022
Structural risks
- Popularity and spending: A decline in the popularity of Formula 1 or MotoGP could impair their ability to exploit championship rights. The businesses are also sensitive to reductions in travel and discretionary consumer spending.
- Team participation: Staging the F1 Championship depends on the ongoing involvement of its participants. The teams’ commitments under the 2026 Concorde Agreement are subject to earlier termination in certain circumstances.
- Commercial rights: The FIA can terminate Formula 1’s commercial-rights agreements under specified circumstances, including certain changes of control without prior approval or an applicable exception. Termination would transfer material commercial rights into effective FIA ownership.
- Debt and cash access: Borrowings under Formula 1 and MotoGP credit facilities carry variable interest rates, so higher rates could increase debt service and reduce income and cash flow. Facility covenants restrict subsidiary activities, and leverage-based tests can limit Liberty’s access to subsidiary cash.
- Shareholder control: Series C common stock generally has no voting rights. The multi-series structure and other charter and bylaw provisions may discourage, delay or prevent a change of control.
Leadership
Liberty has multiple common-stock series: Series B carries ten votes per share, Series A carries one vote per share, and Series C generally has no voting rights. Its board has staggered three-year terms.
| Name | Role | Since | Total pay, FY2025 |
|---|---|---|---|
| John C. Malone | Chairman of the Board | — | $1.4 million |
| Derek Chang | President and Chief Executive Officer | — | $39.3 million |
| Brian J. Wendling | Principal Financial Officer and Chief Accounting Officer | — | $4.4 million |
| Renee L. Wilm | Chief Legal Officer and Chief Administrative Officer | — | $7.8 million |
Bottom line
Our reading
Our reading: Liberty is a commercial-rights business built around two global racing championships, with revenue coming from promoters, broadcasters, sponsors and fans rather than from owning the teams. Its long-dated exclusive rights support that model, but the business remains dependent on audience demand, participating teams and governing-body relationships. Variable-rate debt and limits on access to subsidiary cash add financial exposure.