The seemingly stalled Formula 1 media rights negotiations could shift into another gear with the entry of a new bidder — Apple.
Apple has begun talks to acquire Formula 1 rights in the United States, according to Samuel Agini and Michael Acton of The Financial Times, marking a new entrant into a media rights negotiation that has thus far been stagnant.
Update 7/9: Dylan Byers of Puck reported late Wednesday that Apple has offered between $150-200 million per year, meeting or potentially even exceeding the F1 asking price of $150-180 million.
Original post continues: F1 is seeking to potentially double its current rights fee of $85 million/year, but has thus far found no takers at that price — including incumbent ESPN, which earlier this year was reported to have dropped out of the bidding. The FT reported Wednesday that ESPN could still hold onto the rights.
Apple was not previously mentioned as a potential bidder for F1, a list that has included Netflix, NBC Sports and several others.
Like Netflix, which was also said to have had interest in the rights, Apple has a creative relationship with F1. The company is behind the new F1 movie, which features real life F1 drivers and broadcasters, and which thus far has generated $113 million at the domestic box office and $301 million globally.
The Netflix reality series “Drive to Survive” is often credited for fueling an increase in the popularity and profile of the sport, and per the report Wednesday, F1 hopes the film will have a similar impact.
Whether that will make rights worth the $150-180 million F1 is seeking is another question. It is not entirely clear that “Drive to Survive” has been the driving force behind the upswing in F1 viewership that began in 2021, as there is more anecdata than data gauging the show’s impact.
F1 races this season are averaging 1.3 million viewers on the ESPN networks, up 7% from the same point last year, with seven of 12 races hitting a new viewership high. That includes this past weekend’s British Grand Prix, which with 1.5 million viewers was the most-watched on record.
For Apple, F1 would join a small but growing sports portfolio that includes Major League Soccer and Major League Baseball. While all streamers have been selective in acquiring sports rights, Apple may be exceeded only by Netflix in picking and choosing carefully. The company is said to prioritize global rights, but the F1 contract for bid would only cover the United States.
