TIP814: Formula One Group (FWONA): The Only Sports Franchise Worth Owning w/ Kyle Grieve & Shawn O'Malley

You're listening to TIP. Imagine a company that owns the exclusive commercial rights to a sport with 800 million fans globally. Not the teams, not the athletes, just the right to broadcast, promote, and monetize every single race for the next 86 years. That company is Formula One Group, a subsidiary of Liberty Media, and here's what's wild. They only host 24 events per year, fewer races than most sports hold games in a single season, and yet they're generating billions of dollars in revenue with over 24% free cash flow margins.

But what really caught my attention is just how durable this business actually is. While most investors were sleeping on it, F1 has compounded revenue at 70% annually since Liberty acquired it in 2017, while being a relatively capital-like business. And today, we'll find out whether a 75-year-old sport that most North American investors completely ignored until Netflix's drive to survive series. came out can actually deliver the kind of returns that justify owning it at current prices, or whether you need to wait for Mr. Market to panic again for the math to work.

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