Formula 1 is officially in the market for a new U.S. media rights deal after ESPN’s exclusivity window expired. While ESPN has not officially exited the bidding, this move signals that it is unwilling to meet F1’s high asking price upfront. Liberty Media, F1’s parent company, is looking for a significant increase, aiming for between $160 million and $180 million per year, more than double ESPN’s current $85M—$90M deal.
Deja Vu
Letting the exclusivity period lapse doesn’t mean ESPN is out, but it is not in a rush to lock in a deal at F1’s current valuation. This approach mirrors ESPN’s recent handling of Major League Baseball, where the network walked away from a 35-year partnership in favor of a more flexible, digital-first strategy.
ESPN is betting on its upcoming direct-to-consumer “Flagship” streaming service, which is expected to cost $25–$30 per month when it launches in late 2025. The network is prioritizing sports properties that fit into this direct-to-consumer model, and with F1’s U.S. ratings leveling off, ESPN may be hesitant to match Liberty Media’s aggressive pricing expectations.
So, Who Else is in the Running?
With ESPN’s exclusivity period over, F1 is now free to negotiate with multiple bidders, including:
- Netflix – The streaming giant has played a major role in F1’s U.S. expansion through Drive to Survive, making it a logical contender if it wants to enter live sports.
- Apple – Apple has made significant sports investments, including its MLS deal and an upcoming NBA bid. Its F1 movie starring Brad Pitt suggests the company may want a bigger stake in motorsports.
- Amazon – Amazon Prime Video continues expanding its live sports portfolio (e.g., NFL, Premier League), and F1 would be a premium addition.
- NBC – The network held F1 rights from 2013 to 2017 and, after securing a $7.7B NASCAR deal, could make a return bid.
- Fox Sports – Not interested. Sources indicate Fox is not a player in the current negotiations.
Why F1’s Asking Price is So High
F1 isn’t just chasing a big payday—it needs more revenue ahead of a new Concorde Agreement in 2026, which is expected to increase team payouts. Liberty Media views this U.S. media deal as a major financial lever to help fund the sport’s future.
However, U.S. viewership has plateaued. ESPN’s 2024 season averaged 1.13 million viewers per race, down 3 percent from 2023 (1.16 million) and below the 2022 peak (1.19 million). However, F1 still has premium brand appeal, particularly with high-end corporate sponsors and hospitality experiences at marquee U.S. races like Miami and Las Vegas.
The Take
F1’s next media deal will say a lot about the future of sports rights. As traditional networks become more selective and streaming platforms increase their investment in live sports, F1 could become the next major sport to go digital-first.
With ESPN still involved but no longer holding exclusive negotiating power, F1 now has the leverage to push for a record-breaking deal. Whether that comes from a traditional broadcaster or a streaming giant like Netflix or Amazon remains the big question.
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