- F1 seeking significant increase on US$90m-per-year deal
- ESPN has partnered with series since 2018
- F1 reportedly in talks with multiple broadcasters, including NBC and Netflix
ESPN is not interested in entering a bidding war for Formula One rights in the US and is prepared to let the series go if the asking price is too high.
Disney-owned ESPN has been showing Formula One in America since 2018 and its latest deal, signed in 2022 and reportedly worth US$90 million per year, expires after the 2025 season.
As the incumbent broadcaster, ESPN had a period of exclusivity to negotiate a new contract but that has now expired, prompting more speculation about where Formula One’s next broadcast home in the US will be.
While the end of the exclusive negotiation period does not mean a deal between ESPN and Formula One is off the table, the series is said to be asking for significantly more money, which has reportedly prompted ESPN not to seek an extension.
Viewership for the 2024 Formula One season fell three per cent year-over-year on ESPN in the US. An average of 1.13 million viewers watched races, compared to 1.16 million in 2023. Neither figure matched the 2022 season, which averaged 1.19 million viewers.
ESPN believes the partnership with Formula One has been good for the pair, with the series enjoying a surge in popularity in the States in recent years and the country now hosting three races per season.
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However, despite the fruitful relationship, BlackBook Motorsport understands that ESPN is not willing to retain Formula One at any cost and is keen to avoid overpaying for the rights. The broadcaster is prepared to cut ties with the series in favour of what it believes would be a responsible financial decision.
It is unclear if ESPN’s stance extends to its other major rights contracts in the US that expire this year, including its deal with the Ultimate Fighting Championship (UFC). The mixed martial arts (MMA) promotion reportedly wants its next deal to fetch more than US$1 billion a year.
The nearing end of the current agreement with Formula One comes at a time when ESPN is opting to be more selective with its rights deals, with the network being more frugal in order to save money for major sports properties that drive subscriptions amid the shift to streaming.
This has seen ESPN spend big to renew pacts with the likes of the National Basketball Association (NBA) and College Football Playoff (CFP), while also scrutinising deals it doesn’t think move the needle.
If ESPN does fall out of contention for Formula One, it seems that the series won’t be short of alternatives. The championship is purportedly in talks with several broadcasters, including NBC. Netflix, which was behind the Drive to Survive docuseries that revolutionised Formula One’s popularity, is also evaluating a bid.
For Disney, its wider focus includes pushing ahead with the launch of a full direct-to-consumer (DTC) version of ESPN later this year. Chief executive Bob Iger also said this month that the media giant plans to offer ESPN as part of “skinnier bundles” in the wake of the collapse of the Venu Sports joint venture with Fox and Warner Bros Discovery (WBD) at the start of the year.
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