Just two weeks after reports surfaced that ESPN would not renew its media rights agreement with Formula 1, the circuit’s CEO is projecting strong interest from other companies.
According to a report by Jill Goldsmith in Deadline on Thursday, F1 CEO Stefano Domenicali said, “a number of players are at the table,” for the swanky racing circuit’s media rights after its exclusive negotiating period with ESPN officially expired. However, Domenicali did not fully close the door on re-upping with ESPN, despite prior reports that the Worldwide Leader isn’t interested.
“First of all, we need to be thankful for what ESPN is providing us,” the CEO said. “We are very happy about the quality of the service. We need to remember always that they were first to believe in our project.
“The fact that at the end of the exclusivity period they have not put in place on a formal offer, doesn’t mean that the discussion aren’t going ahead – actually, it’s the other way around. So there are still a lot of discussion to try to find the best solution.”
Under the current deal with ESPN, F1 receives about $90 million in annual media rights fees. With the network displaying a newfound liking towards austerity recently by opting out of its $550 million annual MLB contract, it’s unlikely that ESPN would be willing to pay the significant increase F1 is seeking.
So while that option remains available, at least in Domenicali’s mind, it’s much more likely that the circuit goes with another option.
“There are other players around the table and we cannot deny the fact that there is a lot of interest around our product,” Domenicali said. “We are fortunate enough to have compelling content and a growing fan base and strong demand … from various parties”
The obvious partner that many are pointing to is Netflix. The streamer is often credited with exploding the popularity of the sport in the United States through its documentary series Drive To Survive. However, Netflix has not shown much interest in full-season sports rights to this point. There’s also the irony that Netflix has, in essence, driven up the cost of F1 rights in America through the popularity of Drive To Survive, making an expensive deal a bit harder to stomach.
Puck’s John Ourand suggests that NBC would be a natural fit for the circuit given the network’s prior relationship with F1 from 2012-2016. Its diehard fanbase would also help drive subscriptions to Peacock.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.