Formula 1 U.S. Rights Talks 'Pretty Far Along' As Apple Rumors Swirl

Formula 1 is reportedly deep into negotiations for a U.S. media rights deal, with Liberty Media's CEO indicating progress amid speculation about Apple's interest. The talks come after the success of the Brad Pitt F1 film, which has heightened interest in the sport stateside.

Derek Chang, CEO of Formula 1's parent company Liberty Media, recently stated that negotiations with a U.S. media rights partner are 'pretty far along'. Although Chang did not specifically mention Apple, industry insiders have pointed out that the tech giant has shown keen interest in securing the media rights. Reports suggest that Apple has put forward a substantial offer, potentially outbidding ESPN, the current rights holder. The rumors of Apple's interest have been fueled by its recent investments in sports streaming, including deals with Major League Soccer and Major League Baseball.

The conversations around the media rights deal are taking place against the backdrop of Formula 1's growing popularity in the United States. The sport has seen increased engagement, especially after the success of the Brad Pitt-starring 'F1: The Movie', which has generated significant box office revenue. The film's impact is evident as Formula 1's second-quarter revenue surged by 40% year-over-year. This financial boost underscores the potential benefits a new media partner could bring, particularly one with Apple's reach and resources.

Liberty Media is not just looking for a traditional media partner but is also considering the potential for a partner who can act as a sponsor. This dual role would allow the partner to monetize the relationship creatively, using various commercial strategies. The approach reflects a broader trend in sports broadcasting where rights deals are increasingly incorporating digital and streaming elements, as seen in Apple's other sports ventures.

With the U.S. market becoming more receptive to Formula 1, the finalization of this media rights deal could be pivotal. If Apple secures the rights, it could leverage its platform to further elevate the sport's profile in the U.S., potentially making Formula 1 a flagship offering on Apple TV+. The ongoing negotiations highlight the evolving dynamics of sports media rights, where digital giants like Apple and Netflix are playing an increasingly significant role.