BusinessMar 10, 2025
New Formula One Media Rights Deal Looms Large As 2025 Season Set to Kick Off in Australia This Week
Sports Economics
Noah Weidner
Discover
Disney’s ESPN might stay busy breaking the biggest news in sports, but in recent months, the media network has arguably been the biggest news in sports. Whether it’s been broaching a joint streaming venture with competitors, shelling out billions to acquire FuboTV, or giving commentator Stephen A. Smith a $100M reason not to run for president, the company has demonstrated it will shell out when appropriate. But when it comes to paying for programming, that’s been less the case this year.
That’s notable as a new season of Formula One kicks off this week in Australia. The world’s most popular motorsport, which has been right at home on ESPN since 2018, has exploded in popularity in recent years thanks to a cultural cocktail of Netflix documentaries, new US races, and new interest from US racing teams. But with the sport’s speedy US growth seen slowing, the talk of the town (or rather, the track) is whether or not they’ll still be joining them in the fast lane.
What the F1? As part of its current media deal, ESPN has paid $90M/yr to televise F1. But Formula One Group thinks it can get more. According to reports, the racing series has asked for “up to $180M” for its next media rights deal — nearly doubling the price that its long-time partner pays today. The racing series reckons that’s fair, considering the sport’s years-long growth in the US. But ESPN has reportedly rejected its steep asking price citing weak and declining viewership, meaning that F1 could soon need a new US home after the 2025 season.
ESPN has declared similar programming cuts as a matter of “fiscal responsibility,” seeing as though it finds more viewership from more affordable broadcasting rights. But if ESPN walks, it’ll matter little to F1 — even if the sport’s domestic viewership has plateaued. That’s because other media firms are lining up to make a deal.
USA, USA, USA: Interest from Fox — which recently expanded its slate of motorsports coverage — and Amazon — which eyed a bid in 2018 during the last negotiations — have not been ruled out either. However, a partner that can help the sport continue to grow in the prized US market will be a serious consideration besides money as F1 seeks a new US broadcast home. That’s even more the case with a slew of new constructors joining the grid in the coming years, including American manufacturers like Cadillac and Ford, which could increase competition, excitement, and domestic interest in the sport.
