Formula One CEO Talks Broadcast Rights Deal As Exclusive Negotiating Window With ESPN Expires

Formula One CEO Stefano Domenicali said a number of players are at the table talking about a rights deal to start after ESPN‘s contract expires at the end of 2025. He implied Disney itself may still be in there despite speculation to the contrary after an exclusive negotiating window ended with no renewal.

There is nothing negative here, he said on a call with investors after Liberty’s F1 reported earnings earlier.

“First of all, we need to be thankful for what ESPN is providing us. 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.”

“And of course, now, there are other players around the table and we cannot deny the fact that there is a lot of interest around our product. We are fortunate enough to have compelling content and a growing fan base and strong demand … from various parties.”

Netflix may be one. Its documentary series Formula 1: Drive To Survive is credited with kickstarting U.S. fandom. The streamer has dipped into live sports with the WWE and NFL Christmas Day football games. But co-CEO Ted Sarandos said that while it’s evaluating options there’s no blank check but a focus on the bottom line. Also, big streamers often seek worldwide rights, which would be complicated for F1.

News reports have said the storied auto racing series is seeking a hefty increase to the reported $90 million a year Disney has been paying. It has aired F1 since 2018. Domenicali didn’t go there but said F1 is always trying to balance cash and reach when evaluating partners.

“I think the hot months will be the next ones, before summer, when we should have a better a better picture,” he said.

“People tend to look at these sorts of discussions somewhat simplistically sometimes and really focus on the race and the race broadcast,” added Derek Chang, Liberty Media’s new CEO. “But when you think about media rights in today’s world — the broadcasters, the distribution partners and the IP holders — I think it’s a much more involved relationship … and I think that’s to everyone benefit in the ecosystem.”

Financial results for the first quarter were softer on a decline in race promotion and media rights revenue due to lower ticketing revenue generated from the Las Vegas Grand Prix. Profit dipped on lower revenue.

Chang, who replaced Greg Maffei last month at the helm of John Malone’s Liberty Media, the parent of F1, acknowledged that the economics for Vegas “missed internal expectations” but said the F1 team has moved quickly address issues and make changes “that will benefit 2025 and support a financially successful race for F1, continued growth and positive impact for the Las Vegas community … We now have two years of real data to understand what tickets and products sold well, the demographics of the fan base and the overall cost structure of the event.”