F1 News: F1 predicted to seek sizable TV rights increase in U.S.

Current F1 TV broadcaster in the USA, ESPN’s, exclusive negotiating window with F1 has expired without a deal, according to the London Times, an indication that Liberty Media, who owns the commercial rights to F1, could be seeking a major increase in the value of its media rights.

ESPN signed a three-year deal with London-based F1 for the ’23-25 seasons and has been immersed in talks for months. During the F1 Heineken Silver Las Vegas Grand Prix in November, ESPN confirmed to SBJ that it would like to extend.

Last week, the London Times reported that Netflix is considering a bid for F1’s rights in the U.S. and that ESPN’s exclusivity period had lapsed. A person familiar with the matter independently confirmed that to SBJ. ESPN declined to comment when contacted Monday night.

ESPN has been paying between $75M-$90M a year for the rights to F1, which is owned by Liberty Media. But given the continued interest around sports rights and the curiosity that F1 has generated, F1 is likely to seek a major increase in the value of the rights, according to multiple industry experts. An exact figure could not be confirmed, but a sizable leap from $90M would take the property into the nine figures in U.S. media revenue annually.

“If I’m Formula 1, I’m looking at the growth of Tier 1 sports in this marketplace, and I’m saying I want my cut, and I’d be going to market very aggressively,” said Dan Cohen, executive vice president of media rights advisory at Octagon, which is not working with F1 on the search but has advised other motorsports properties on media rights.

“(F1 is likely) talking about not only the fact that I’m bringing in 1.3-1.4 million [viewers] consistently week in, week out, but I also give them global reach as a sport, which is unique to Formula 1 versus other motorsports – NASCAR, IndyCar – in this marketplace. It’s also the best in my opinion motorsport property to work with if you’re trying to attract high-end, high-value brands to your platform or network.”

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NASCAR makes $1.1 billion in annual rights fees in the U.S., while IndyCar is closer to a meager $20 million. More at Sports Business Journal