US Entertainment: The bull case for sports (TKO & Liberty F1) in 2H26

Research evidence excerpt

US Entertainment: The bull case for sports (TKO & Liberty F1) in 2H26

28 July 2026

U.S. Entertainment

US Entertainment: The bull case for sports (TKO & Liberty F1) in

2H26

The second half is already thick with competing TMT narratives, and entertainment investors’ Ian Moore

+1 917 344 8434 attention continues to orbit the corners of the market where disruption risk is meeting

ian.moore@bernsteinsg.com accelerating product velocity. Against that backdrop, we continue to recommend live

entertainment names that marry quiet, durable core growth with longer term optionality. We

Nosher Ali Khan continue to argue for LYV as a quality, multi-year compounder but see sports representing

+1 917 344 8578

nosher-ali.khan@bernsteinsg.com standout, asymmetric ideas for 2H26. TKO continues to convert unrelenting UFC

engagement into higher FIP & sponsorship realization, while the residual Zuffa opportunity

remains only partially recognized. F1 continues to confront demand that looks less cyclical

than structural, as streamers & broadcasters, third-party promoters & municipalities, brand

sponsors & product licensors all bid for scarce inventory. Add the still-under-exploited

MotoGP runway, where sponsorship white space & additional race slots persist.

TKO - multiple expansion on de-risked near-term runway & long-term optionality.

On partnerships, brand monetization remains early, and we see a runway to $1.4B

+ in sponsorship by 2030, above management's $1.2B target and consensus, as

Paramount/Netflix reach resets pricing across the stack (Exhibit 4-Exhibit 5, Primer:

Content Monetization 101). On ticket yield, there is no observable price elasticity, as

premium pricing has 2.5x'd in four years while sellout rates climbed from 69% to 93%