Apple’s F1 bid reportedly between $150m and $200m

Apple seems to be serious about getting into the Formula One business.

Shortly after the Financial Times reported that Apple had submitted a bid to earn the broadcast rights for the global racing circuit, Puck’s Dylan Byers is now reporting the financial details of the offer. Per Byers, Apple offered Formula One “in between $150 million and $200 million per year — far above the reported $85 million to $90 million that ESPN is currently paying per annum, and far beyond what ESPN can rationally afford.”

The news goes against reporting from earlier this year that Formula One was struggling to attract a bidder at its goal price of $150 million to $180 million per year. According to the Financial Times‘ initial report, Apple has been at least partly convinced of the racing circuit’s popularity based on the success of its recent film F1 starring Brad Pitt, which has grossed $300 million at the box office and become Apple TV+’s most successful original movie.

Byers suggests that ESPN chairman Jimmy Pitaro “will inevitably have to persuade Liberty [Media]’s John Malone and Derek Chang to take less from ESPN in order to maintain the reach and marketing that ESPN provides.” A move to Apple TV+ would substantially limit Formula One’s reach, similar to Apple’s current deal with MLS that many have criticized. Of course, the trade off with both of these deals is that the league is paid a higher rights fee than they could otherwise attract from a wider-reaching platform.

Should Byers’ reporting be accurate, it seems that ESPN is facing an uphill battle to retain Formula One rights. With Apple meeting the circuit’s publicly reported target price, it’ll likely be hard for Formula One to take anything less.