ESPN and Formula 1 announced a contract extension over the weekend that will see the network continue to carry the racing series broadcasts for three additional years, through the 2025 F1 season.
The new deal will see ESPN pay $85 million annual to the series, according to a report from Sportico. Previously, the network paid $5 million for the schedule, which mostly sees races airing Sundays in the early to late morning window in the Eastern Time Zone.
As part of the deal, at least 16 races will air on ABC, ESPN, and ESPN2. The 2023 Formula 1 calendar currently has 24 races scheduled, leaving some to air exclusively on ESPN+, should the network decide to do so.
Formula 1 races have aired commercial-free on ABC, ESPN, and ESPN2 and that will continue during the upcoming contract. Also included in the updated contract are all race weekend events, including all three practice sessions and qualifying, as well as F1 Sprint races.
“Formula 1 and ESPN have been a strong and successful team and we’re delighted to extend our relationship,” said Burke Magnus, ESPN President, Programming and Original Content. “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.”
F1 races have averaged 1.2 million viewers in 2022. That number represents a 26% increase in audience compared to 2021.
The 2023 Formula 1 season will see an American driver, Logan Sargeant, enter the series. The 21-year-old Sargeant — if he can secure enough points for a F1 Super License — will serve as the first full-time driver from the United States since 2007. The season will also see the debut of the Las Vegas Grand Prix, which will run on the streets of the famous Las Vegas Strip in November of next year.
Amazon Prime Video reportedly offered Formula 1 a $100 million annual offer, but the racing series valued a linear television audience. The Sportico report also claims Comcast made an unsuccessful bid for the rights. It did not report, however, on whether Netflix made an offer.
ESPN needs to produce US based broadcasts. They got in dirt cheap last go round because F1 was considered a dead product. Also carrying the Sky sports feed was another good move at the time, but now with 3 US races plus a race in Montreal, a very close destination. They need to grow the sport not just rake in cash from a sweetheart deal. They are paying over 3 times more per year than they paid for the entire deal this time. 1.2 million fans on ABC with this current deal is not good business going forward. They showed they can take this sport serious when they went all out with the Miami GP this spring. If they want to make this a good deal in the long term they will have to put resources into promoting the product. I know with so much other sports this weekend much of it airing on their own networks the US GP is not a great example but I saw almost zero promotion for this event. F1 fans are not served if ESPN just thinks they can plop these races on and people will watch.