Apple’s Formula 1 Bid Plays Long-Game For TV Sports Rights

Apple TV+ will likely win Formula 1’s U.S. broadcast rights, according to a report from The Athletic.

That fact isn’t so surprising given the backdrop of Apple Original Films’ F1: The Movie racing to theaters this summer. But the rumored (per The Athletic) $120-150 million per year bid is still a significant step up from ESPN’s current $75-90 million rate, and indicative of what Apple’s willing to pay in its slow-but-steady quest to reshape sports rights.

Apple’s Sports Approach

To-date, Apple hasn’t been as splashy as streaming cohorts like Amazon Prime Video and Netflix when it comes to sports. But its investments have still generated attention via their perceived niche focus.

Right now, Apple TV+ airs all Major League Soccer matches as part of a $2.5 billion, 10-year deal. The service also airs Friday Night Baseball for $85 million per.

Both deals could be evaluated as potential overpays relative to what legacy media companies were willing to spend on those rights. But that’s an understood part of doing business anytime you’re the perceived “upstart” in a space. You’re paying more to become a proven commodity.

Where Apple’s zigged a bit in that regard while Amazon Prime and Netflix has zagged, though, is in regard to what the service is paying those larger sums for.

There’s little data out there around Apple TV+ subscribers or audience, but it’s fair to guess that Friday Night Baseball’s audience is no more than half of Fox’s Saturday night MLB slate (an average of 2.14 million viewers this season). In December, The Guardian reported that the 2024 MLS Cup Final – between the Los Angeles Galaxy and New York Red Bulls – had just 65,000 viewers on Apple TV+.

Assuming Formula 1 would see a dropoff on Apple TV+ as well from its 1.3 million-viewer average on ESPN this season, it’s clear that the service is aiming to hone its sports chops with niche events in a similar fashion to its more niche scripted programming approach. And while the returns may be questionable for Apple today from an audience perspective, the increased media revenues can help fuel growth for these sports that makes the investments a net win in the end.

Growing Investment Value Over Time

For instance, by outbidding any other suitors for MLS, Apple injected significant value into the league and its clubs, helped MLS acquire more talent and ultimately, improved the quality of the product. In February 2025, Forbes valued three different MLS clubs at over $1 billion (and 25 at $500 million or more), and that number is likely to climb. By the end of the original 10-year deal, MLS rights may very well be worth at least what Apple paid for them – especially as sports increasingly dominate live TV.

Formula 1 is in a different boat globally, as MLB is both globally and domestically, but both can still strategically leverage the extra dollars from Apple TV+. For Formula 1, it comes in the form of growing and eventizing its existing U.S. investments (including three races in the county now). For MLB, the Apple TV+ revenues help offset some of the league’s ongoing regional TV struggles.

The proof’s already there that the MLB investment, in particular, is already worth it for both sides. Recent reports from Sports Business Journal indicate that Apple is among the leading suitors to land some of the TV package currently with ESPN. If the Friday Night Baseball deal wasn’t paying dividends for baseball and/or Apple was truly bothered by the “low” audience relative to major live sports, they wouldn’t be interested in allocating even more money there.

Next Up For Apple

The end-goal for Apple, then, becomes how to eventually turn all of this sports interest into more subscribers and more streaming-related revenues.

Now, Apple doesn’t necessarily “need” its TV+ venture to be profitable given the size and success of the company overall.

The most cynical view of Apple TV+ is that it’s a nice-to-have for Apple; somewhere for the company to spend money that helps it sell some devices, get invites to entertainment and sports industry conversations, and just add another potential revenue stream.

But if it perfects its sports broadcasts as a way to draw in key audiences, leverages those into an increased footprint for scripted shows, and really turns on the potential power of its targeted advertising? There’s a potentially exciting long game here for the streaming service that truly delivers on (and profits from) the idea that it’s just become “expensive NBC.”

Whether the sports and entertainment space are ready for that future is a different story. The vision is starting to come together, though, despite the immediate doubts on Apple’s cadre of sports versus the bigger live TV picture.