Apple TV Just Paid $750 Million to Take Over Formula 1’s U.S. Broadcast Rights
Apple’s exclusive Formula 1 media rights deal could reshape sports streaming forever. But behind the scenes, investors and team owners aren’t nearly as excited as Liberty Media is.
Apple TV has signed a five-year deal to become the exclusive U.S. broadcaster of Formula 1. Starting in 2026, Formula 1’s U.S. media rights will move from ESPN to Apple TV, with the streaming company paying an average of $150 million annually to broadcast every F1 race, practice, qualifying, and sprint session in the United States.
To be honest, I wasn’t initially planning to write about this deal. It seemed pretty straightforward. Similar to Major League Soccer’s decision in 2022, F1 essentially agreed to sacrifice long-term audience growth on cable for short-term cash from a paywalled streaming service. ESPN couldn’t go much higher than the $90 million they are paying F1 today (because they don’t run commercials during the races), so Apple TV capitalized on the success of its record-breaking F1 movie to steal the rights.
However, after talking to some of the most influential people in Formula 1 over the last week — team owners, sponsors, F1 executives — I realized that there are differing opinions on this deal. Some people think F1 did the right thing, while others painted a picture of the growing frustration between the sport’s governing bodies and its teams.
So for today’s newsletter, we’ll break down all the details. We’ll start by talking about how F1 increased the value of its U.S. media rights from $0 in 2018 to $150 million annually in 2026, as well as some of the technological innovations Apple TV plans to deploy next year. But then, I want to get into the controversy, including why some of F1’s most important stakeholders are not as impressed with the deal as it might seem.
Even if you don’t watch Formula 1, this is a fascinating look at how a major sports organization negotiates its media rights in the 21st century. As the world continues to transition from cable to streaming, every sports league will face a similar dilemma.