APPLE VS. ESPN: WHO GETS THE F1 SPEEDING TICKET
“F1: The Movie” has cleared $300 million in global box office since its debut. A perfect time for Apple to keep the pressure on ESPN in the battle for F1's New Media Rights Deal
It’s remarkable to think that just two decades ago, few could have predicted we’d be watching media rights negotiations unfold between a traditional sports network and a company best known for making phones. Yet here we are, with that same tech giant now producing blockbuster films and running one of the world’s leading streaming platforms.
Welcome to the battle between Apple and ESPN as they slug it out behind closed doors for the rights to broadcast and stream F1 in the United States. One thing is certain: if NBA Commisioner Adam Silver were in charge of these negotiations, he would create a package for both Apple and ESPN.
So as we all know, Formula 1 (F1) has experienced a dramatic surge in popularity in the United States over the past decade, driven largely by a combination of more races in North America and the success of the Netflix series Drive to Survive. With Grand Prix races in Austin, Miami, and Las Vegas, it’s clear the old deal, signed 3 years ago for $90 million per year by ESPN, is significantly undervalued.
Like most sports media rights deals in the U.S., we are not hearing specifics about where the negotiations are currently at; however, some six months ago, ESPN pulled out of talks and, after a few days, reversed its position publicly and reentered into talks to retain Formula 1 media right in the U.S.
According to a report from the Financial Times this week, Apple is “challenging” ESPN to be the Formula One broadcaster in the United States.
You can expect the price tag for F1 in the U.S. to fall between $150M and $200M a year, and if you're wondering why those numbers are not higher, well, the reality is in the U.S., more people watch NASCAR than F1.
Just this week, ESPN announced that F1 races are averaging 1.3 million viewers across ESPN, ESPN2, and ABC this season, up 17% from last year.
Current Landscape: ESPN’s Tenure
Current Holder: ESPN, owned by Disney, has held the exclusive U.S. broadcast rights for F1 since 2018.
Financials: The most recent renewal, signed in 2022, is valued at approximately $85–$90 million per year, a significant jump from previous deals that were as low as $5 million annually
Performance: ESPN’s coverage has delivered record viewership, with 2025 races averaging 1.3 million viewers and marquee events like the British and Monaco Grands Prix setting new highs
The Upcoming Rights Battle
Liberty Media’s Ambitious Valuation
Asking Price: Liberty Media, F1’s parent company, is seeking a new U.S. media rights deal valued between $150 million and $120 million per year.
Motivation: The valuation reflects F1’s rapid U.S. growth and the sport’s desire to cement itself as a cultural force alongside the NFL, NBA, and MLB.
ESPN
Status: ESPN’s exclusive negotiation window has expired, but the network remains interested, especially in streaming rights or a partial package.
Strategy: ESPN may seek to retain a portion of the rights, possibly sharing coverage with a streaming partner.
Apple
Aggressive Bid: Apple is in active negotiations for the rights, aiming to stream F1 on Apple TV+ starting with the 2026 season.
Momentum: Apple’s interest is bolstered by the success of its F1-themed movie starring Brad Pitt, which grossed nearly $300 million in its first 10 days, and by its growing live sports portfolio.
Potential Impact: If successful, Apple could seek exclusive streaming rights, possibly impacting the availability of F1 TV, the sport’s own direct-to-consumer platform.
Netflix and Other Streamers
Interest: Netflix, which helped fuel F1’s U.S. popularity with Drive to Survive, is reportedly preparing a bid. Amazon and other digital giants are also monitoring the situation.
Challenges: While Netflix has expanded into live sports, its approach is typically event-driven, raising questions about its appetite for a full F1 season.
Traditional Broadcasters
Mild Interest: NBC, Fox, and Warner Bros. Discovery have all shown interest, but none are expected to match Liberty Media’s high asking price.
Factors Shaping the Negotiations
Rising Popularity: U.S. F1 viewership has doubled since 2018, with younger audiences increasingly tuning in for live races.
Streaming Shift: The next deal is likely to include a significant streaming component, reflecting broader trends in sports media consumption.
Cultural Growth: Liberty Media’s goal is not just higher fees, but a partner who can grow F1’s U.S. fanbase and cultural relevance.
The U.S. F1 media rights package is at a crossroads, with tech giants and traditional broadcasters vying for a sport on the rise. The outcome will shape how millions of American fans experience Formula 1 and could set a precedent for the future of global sports broadcasting in the streaming era.
Although it remains uncertain which contender will ultimately secure the rights from Liberty Media, a shared arrangement involving both Apple and ESPN appears to be the most practical solution for all parties. This type of split package could maximize audience reach by combining ESPN’s established broadcast presence with Apple’s innovative streaming capabilities, ensuring fans have flexible access to Formula 1 coverage across multiple platforms.