The finish line for the next Formula One media rights deal could be further than it appears. According to a report from the Wall Street Journal, F1 is searching for a “rights package at around $150 million to $180 million a year beginning with the 2026 season” and is struggling to find suitors. Although the report does state that the number “isn’t an official asking price,” F1 has been shopping around after ESPN declined to renew due to the price increase reportedly not making business sense for the programming.
From the Wall Street Journal:
ESPN walked away late last year from its exclusive negotiation window for a new package. Netflix, Warner Bros. Discovery, Fox, Amazon.com and NBC are lukewarm on the offering, too—at least, at the current price, according to people familiar with those companies’ discussions.
F1 has seen a huge growth in viewership since joining the ESPN networks in 2018, nearly doubling its average viewership from 554,000 viewers to 1.1 million viewers in 2023. The deal brought F1 coverage to ESPN platforms, including ESPN+, for $90 million per year, which averages 1.1 million viewers per race.
The WSJ report cites research from Ampere Analysis that F1’s US rights package is estimated to be worth more than $100 million but less than the $180 million figure it is reportedly looking to secure. Additionally, “some F1 rights bidders are still likely in the mix, and F1 is expected to improve on its existing deal,” per the report.
During Super Bowl Week in New Orleans, F1 executives met with NBC and Netflix and discussed bringing the racing circuit to their platforms. These two streamers make a strong case for adding F1 since they both have an existing relationship with motorsports fans.
NBC’s Peacock has a study lineup of sports, including racing juggernaut NASCAR, SuperMotocross, IMSA, and other leagues and events. Plus, Peacock could add F1 to fill the hole left by the IndyCar Series, which left for Fox Sports after 16 years with NBC Sports.
For Netflix, it already has a strong existing relationship with F1. The platform is home to F1’s Drive to Survive, which has helped spark interest in the sport in the United States. The WSJ report cites Ampere data that “three-quarters of F1 fans already have Netflix subscription.” However, the streamer isn’t planning to place a bid on F1’s rights, according to the report.
ESPN isn’t completely out on F1 rights, according to the report. With the launch of its Flagship app set for later this year, if the network and F1 can agree on a new deal, it could help boost subscribers for the upcoming launch. Additionally, ESPN split with MLB after 35 years due to the network reportedly wanting to pay a lower cost for its baseball rights, which could open the door for an F1 return at the right price.
As for the other players who are lukewarm on the international racing league, if the numbers are right, F1 could prove beneficial for their streaming platforms. Fox plans to launch a standalone streaming service later this year with a lineup that already includes NASCAR and IndyCar; F1 would make it the destination for race fans. Likewise, WBD’s Max and Amazon Prime Video both offer some NASCAR races as well; boosting their lineup with F1 could drive even more dedicated fans to each platform.
For now, race fans will have to wait and see where F1’s media rights deal crosses the finish line.
Credit: Wall Street Journal