ESPN and Formula 1 have cultivated a remarkably successful partnership that, coupled with Netflix’s Drive to Survive, has propelled the world’s most popular racing series to unprecedented levels of visibility in America. However, F1 appears poised to pursue an even more lucrative deal in the near future. Earlier this month, it was revealed that ESPN will not renew F1 rights when their contract concludes at the end of the 2025 season, with Netflix and NBC cited as potential candidates for the new contract.
That upcoming contract could prove to be significantly more expensive for any network or streaming service eager to acquire the racing series. As reported by Sports Business Journal publisher Abraham Madkour, F1 may see its US television rights fee leap from the current $85 million per year to the range of $160-180 million annually.
Holmes will work the marketplace hard to share the F1 story, and not surprisingly, Liberty Media has very high expectations on this renewal. It is looking for an aggressive increase from the estimated $85 million a year that ESPN pays to a deal that would pay between $160 million and $180 million a year. What’s behind such a number? It’s very likely that any new Concorde Agreement implemented in 2026 will mean more revenue distributed to the teams. So, Liberty Media views this deal as one of the biggest economic levers F1 has to drive more revenue.
Given ESPN’s recent decision to opt out of its $550 million yearly MLB deal, it’s not surprising they would consider a value-based decision regarding Formula One if the rights fee is set to more than double. Despite the successful partnership, ESPN broadcasts the races commercial-free, with an average audience of just over a million viewers. However, F1 provides ESPN with valuable programming for its networks, especially during early hours when live sports options are limited. Between races, practice sessions, and qualifying events, there are numerous hours of F1 content each race week that would feature in the deal.
F1 has experienced a slight plateau over the past couple of years due to the overwhelming dominance of Max Verstappen, so prospective networks may want to approach negotiations with caution. An F1 agreement would be particularly advantageous for NBC as they aim to enhance their sports offerings on Peacock, just as it aligns with Netflix’s strategy, given their existing connection to Drive to Survive and their increasing efforts to incorporate more regular live sports and entertainment.
Ultimately, whoever secures the winning bid for the next F1 US television contract will likely need to invest heavily.
