Formula 1 rights draw little interest at current asking price
Formula 1 rights draw little interest at current asking price
According to a new report, Formula 1 rights may not be racing off the open market any time soon.
Formula 1 was hoping to see plenty of green when it began shopping its United States broadcast rights. Instead, it appears to be drawing nothing but yellow caution flags. The racing circuit’s rights are on the open market, after ESPN declined to renew its broadcast deal past 2025. Now, according to The Wall Street Journal, Formula 1 is having a hard time finding a partner at its current asking price.
According to WSJ, Formula 1 is seeking between $150 million and $190 million per year for its domestic rights package. That would be up to double what ESPN has been paying, and most of the outlets that have checked in with F1 aren’t terribly interested at that price.
Those outlets include Netflix, Warner Bros. Discovery, Fox, Amazon, and NBC. That’s not to say that these companies would have no interest at a lesser price, however. Netflix thought about going after F1 in 2022, and has already discussed a renewed pursuit. WBD’s interest in F1 was recently reported, as well.
If F1 were to lower its asking price, it might suddenly find a rather robust marketplace. Although marquee leagues like the NFL and NBA are making record-breaking broadcast deals, media companies that are grappling with the decline of the pay-TV model and the economics of trying to make streaming profitable are generally being uncharacteristically careful about how much they spend on sports rights.
“It’s a cool sport, no doubt,” sports media consultant Patrick Crakes told WSJ about F1. “But cool doesn’t pay the bills.”
That seems to be the prevailing sentiment about F1 at media companies for the moment. Most expect the circuit to increase its rate on its next set of contracts, though few believe it will get its top asking price.
One of the biggest problems for media outlets is that since F1 races happen around the world, many happen early in the morning or overnight in the U.S. That limits the possible audience, even with the relative ease with which a streamer could distribute races. Nevertheless, Liberty Media — which bought F1 in 2017 — is determined to expand the racing league’s domestic audience.
It only takes one bidder to meet F1’s asking price, but right now that doesn’t look too likely. ESPN’s time as Formula’s broadcast partner is set to end following the 2025 season, so F1 doesn’t have unlimited time to try and shop its rights around at its current asking price.
Netflix
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