Formula One continues to enjoy rude financial health, with Liberty Global reporting a 28 per cent increase in revenues during Q3. Quarterly revenues now stand at US $1.12 billion, of which media rights, sponsorship and race promotion fees contributed US$934 million.
Meanwhile, adjusted OIBDA, which is the main profit measure used by Liberty, saw a 44 per cent YoY increase to US$338 million. The series’ operating income increased 61 per cent YoY to US$270 million.
But beyond the headline figures of another successful quarter, what’s really going on behind Liberty Media’s latest financial results?
1. Nine-month results hold flat despite fewer races
Arguably the most notable discovery is that revenues this year to date remain relatively static at US$2.5 billion.
This is despite there being only 15 races in the period this year, compared to 17 in 2025.
The ongoing conflict in the Middle East saw visits to Bahrain and Saudi Arabia cancelled earlier this year, although the Bahrain Grand Prix made a surprise return to the schedule later in the year thanks to a hosting deal with the Sepang International Circuit in Malaysia. The sport is currently expected to go ahead with its plans to race in Qatar and Abu Dhabi.
And not only has Formula One lost the revenue from the Saudi Arabian Grand Prix, which reportedly pays around US$55 million a year to host the series, this year’s financial results do not include the one-off income boost from the F1 movie.
Sponsorship revenue also grew despite two fewer races, while the release stated there was ‘underlying contractual fee increases across all revenue streams’.
2. Work to be done on MotoGP
While MotoGP’s financial results have fallen across the board in Q3, much of this is due to there being fewer races in the period. A fall in contractual media rights revenue should trigger some concern for the championship, however.
MotoGP certainly isn’t struggling but, one year into Liberty’s ownership of the series, it’s not growing either. MotoGP’s nine-month adjusted OIBDA margin has slipped from 36 per cent to 33.9 per cent in the space of a year, although this should be expected for a series investing in itself for future growth.
What’s more, MotoGP’s debt now stands at 4.7 times its earnings, up from 4.5 times in June. This isn’t particularly concerning for a recently acquired property, but it will be concerning if earnings continue to fall – although Liberty Media has the cash reserves to get behind it.
3. John Malone gives up control
Hidden away in the results was the news that John Malone and his related entities have had their voting power cut from 48 per cent to three per cent. In the process, he has stepped down as chairman emeritus to become a senior adviser.
This continues Malone’s transition away from power after vacating his role as chairman in January this year. But this means Liberty is now entering unchartered territory,
Now, Liberty says that no shareholder can hold more than nine per cent of the voting power at the company. If someone passes this threshold, a shareholder rights plan will kick in that quickly dilutes everyone’s shares – otherwise known as a poison pill.
This safeguarding mechanism will run until 3rd November 2027, but the results also warned there is now an increased risk of ‘stockholder activism, proxy contests or unsolicited acquisition’ due to the reduction in Malone’s voting power.
While far from a confirmation of future plans, Liberty’s ex-chief executive Greg Maffei has since revealed Formula One could even go private within the next two years at Sportico Invest New York.
In short, this new structure means there is no longer a single shareholder that can block a potential deal, something that would potentially take Formula One private. The poison pill defence gives the board control for the next year, but Liberty hold a legal obligation to consider what’s best for shareholders if a bid is submitted.