ESPN Agrees To Multi-Year Extension With Formula 1, Including Streaming Rights

With Formula 1 continuing to rise in popularity in the United States, The Walt DisneyDIS
Company is officially capitalizing on the renewed interest in open-wheel racing.

ESPN has officially inked a three-year deal to broadcast Formula 1 in the United States, through 2025. The commercial-free races will continue throughout ESPN’s contract, with additional content expected on ESPN’s streaming service, ESPN+.

ESPN President of Programming and Original Content Burke Magnus announced that the agreement enables the broadcast to expand into “additional ways for fans in the U.S. to consume F1 content over the next three years, including on ESPN+.” At least 16 races per season will be aired on ESPN or ABC.

“We are delighted to announce that our partnership with ESPN will continue,” Stefano Domenicali, President and CEO of Formula 1, said in a statement. “Formula 1 has seen incredible growth in the United States with sold out events and record television audiences, and the addition of Las Vegas to the calendar next season, alongside Austin and Miami, will see us host three spectacular races there.

“The ESPN networks have played a huge part in that growth with their dedicated quality coverage. We are excited to expand our relationship and continue to bring the passion and excitement of Formula 1 to our viewers in the U.S. together.”

This year, ESPN broke the record for the largest American television audience for a live F1 race in history, boasting an average of 2.6 million viewers to watch the Miami Grand Prix on ABC. The momentum has continued after Netflix’s Drive to Survive series, which created a wave of interest in Formula 1. The series was so popular that it encouraged Nascar and ComcastCMCSA
to create one of its, which debuted this fall, called Race for the Championship.

In June, the two sides were reportedly close to finalizing the deal, which is worth between $75 million and $90 million annually. The American-based Liberty Media, which owns Formula 1, received offers from NBC, AmazonAMZN
and NetflixNFLX
. The deal is a major increase from the current rate of $5 million per year, which ESPN signed in 2018. Sportico’s Anthony Crupi reports Disney will pay a grand total of $255 million ($85 million per year) for the deal.

ESPN does not have its own broadcast for Formula 1. It rebroadcasts Sky Sports’ Formula 1 coverage, with no commercials aired.

“Formula 1 and ESPN have been a strong and successful team and we’re delighted to extend our relationship,” Magnus said. “We look forward to serving fans in some new and innovative ways in the next three years as we continue to bring the reach and relevance of the Walt Disney Company networks and platforms to Formula 1.”

ESPN’s average audience per race this year is around 1.2 million viewers, an increase from last year’s average of 949,000 viewers per event.

Next year, there will be three Formula 1 races in America, with the addition of a street race in Las Vegas.

In 2021, reports emerged that ESPN may be interested in rekindling a broadcast deal with Nascar after NBC took over its half of the schedule in 2015. The widely talked about upcoming Nascar TV rights deal will likely see an increase in the percentage teams receive from it, alleviating the burden of costs and enabling teams to not rely as much on sponsorship. There is no word how ESPN’s deal with Formula 1 will impact potential negotations with Nascar.