ESPN is stepping away from the Formula 1 business. According to a report by John Ourand of Puck, the Worldwide Leader has opted not to renew its current media rights package with Formula 1, despite previous reports suggesting that the network was interested in extending its deal. Currently, ESPN pays around $90 million annually for the rights, but F1 is looking for a significant increase in its next agreement.
Per Ourand, the leading candidates to acquire the racing circuit are Netflix and NBC. F1 executives reportedly engaged in discussions with both companies during Super Bowl week in New Orleans. NBC previously aired F1 races from 2012 to 2016 and could serve as a “natural landing pad” for the sport, especially considering its potential to drive Peacock subscriptions. Interestingly, Netflix has greatly enhanced the sport’s popularity in the United States through its acclaimed Drive to Survive series, although it has been selective with its sports rights partnerships.
Ironically, Netflix has inflated the price for F1 rights in the U.S. due to its role in boosting the sport’s appeal. Should the streamer decide to enter the live events arena, it would only have itself to thank for the associated high costs. ESPN’s decision occurs as they are also contemplating pulling out of their current deal with Major League Baseball. Lately, the network has demonstrated caution regarding media rights renewals, having previously declined opportunities with the Pac-12 and MLS in recent years.
F1 falls into the same category, as $90 million for a property that attracts only 1.1 million viewers per race isn’t particularly enticing. Spending more would seem illogical, especially when considering MLB, where the stakes rise to a staggering $550 million. If ESPN’s approach with F1 is any indicator, they are likely to closely evaluate MLB in the coming weeks.
