By Isabella Simonetti

Formula One is among the fastest-growing sports in the world, oozing sex appeal with young drivers and zippy cars. But it is having trouble translating that revved-up popularity into the large-scale rights package it wants.

F1, which Liberty Media bought in 2017, has been shopping a rights package at around $150 million to $180 million a year beginning with the 2026 season, according to people familiar with the matter, though there isn't an official asking price. That would be up to double what ESPN has been paying recently, and a far cry from a multiyear agreement it reached with F1 in 2018, when the Disney-owned network had the right to air races for free.

U.S. viewership for live F1 races on ESPN roughly doubled since 2018, to 1.1 million a season in 2024, according to Nielsen data. And this season is off to a strong start, ESPN said.

ESPN walked away late last year from its exclusive negotiation window for a new package. Netflix, Warner Bros. Discovery, Fox, Amazon.com and NBC are lukewarm on the offering, too -- at least, at the current price, according to people familiar with those companies' discussions.

The National Basketball Association and National Football League have inked giant media deals in recent years. But it is becoming harder for entertainment companies to justify big spending on other sports, as networks face continued challenges from cord cutting. Meanwhile, streaming services aren't scrambling for full-season packages.

"It's a cool sport, no doubt," said Patrick Crakes, a sports media consultant and former senior executive at Fox Sports, of F1. "But cool doesn't pay the bills."

Fox Corp. and The Wall Street Journal's parent company, News Corp, share common ownership.

Some F1 rights bidders are still likely in the mix, and F1 is expected to improve on its existing deal, according to industry watchers -- including Crakes.

Research firm Ampere Analysis recently estimated that F1's U.S. rights package is worth above $100 million a year, but not the $180 million industry reports earlier said it was seeking.

Derek Chang, who took over as chief executive of Liberty in February, said he is looking for the best mix of exposure to new fans and the highest-paying deal, but recognizes the industry is shifting -- and challenging -- for both broadcasters and streamers.

"The whole media world is a very fluid situation," said Chang.

'Drive to Survive'

The lack of fervor over F1's U.S. live-TV rights stands in contrast with global excitement around the sport.

Models and actors clamber for spots in the paddock, close to the action as men pile into single-seat cars and navigate circuits in destinations including Australia, Mexico and Italy. High-end brands vie for prime promotional placement.

Netflix's "Drive to Survive" documentary series helped catapult F1's popularity in the U.S. Then came "Gran Turismo," a 2023 Sony film based on the story of a gamer who got a shot at competing in real life. This June, Warner Bros. is distributing an Apple film, "F1," starring Brad Pitt.

Despite the Hollywood hype around F1, the races themselves aren't blockbuster draws. That is partly because of timing: Many races air early Sunday mornings for U.S. viewers.

Some fans watch on-demand replays via the F1 TV service. That service is part of the media-rights discussion, according to a person familiar with the company's discussions.

Tough sell

The coming U.S. rights deal represents a small slice of F1's revenue, but Liberty has focused on growing F1 in the country and the new deal will help determine the sport's next chapter here.

The success of "Drive to Survive" and earlier reports prompted speculation that Netflix might want in on F1 rights. But it isn't currently planning to bid, according to a person familiar with the matter.

Three-quarters of F1 fans already have Netflix subscriptions, according to data from Ampere, leaving minimal chance to attract new customers, but potential opportunities for subscriber retention.

ESPN hasn't completely ruled out new talks on F1, according to people familiar with the matter. Still, it has been making many tough choices lately.

Disney signed on to a $2.6 billion a year deal with the NBA last year, and ESPN recently ended its 35-year relationship with Major League Baseball, saying it was unwilling to continue paying the $550 million the league wanted for a games package. It is also preparing to bring its programming onto a new streaming service.

ESPN might be more inclined to bid for F1 if the company thought it would drive subscriptions to that service, said John Skipper, ESPN's former president.

Write to Isabella Simonetti at isabella.simonetti@wsj.com

(END) Dow Jones Newswires

April 09, 2025 10:00 ET (14:00 GMT)

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