Sports TV Rights: Formula 1, UFC, MLB Eye Double-Digit Growth in US
Formula 1 Targets $160-180 Million per Year
Formula 1, currently broadcasted by ESPN, is aiming for a serious increase in its US TV rights income. According to The Financial Times, the motorsports series plans to receive $160-180 million per year, up from the current $90 million annual deal. The current contract expires after the 2025 season, and Liberty Media, the owner of Formula 1, has ruled out renewal with ESPN.
“We choose events with a large audience and a wide resonance.” – Ted Sarandos, Netflix Co-CEO
Netflix, with its growing sports portfolio, is seen as a strong contender for Formula 1’s TV rights. The streaming service has already shown interest, offering an $80 million deal in 2022. Now, with increased investment in sports content (SportsPro), Netflix may raise its bid significantly.
UFC Aims for $1 Billion per Year
The Ultimate Fighting Championship (UFC) is seeking a major increase in its US television rights income, targeting over $1 billion per year. The organization’s current five-year deal with ESPN expires in 2025, and exclusive negotiations from January to April did not lead to an agreement.
UFC President Dana White is interested in a 10-year agreement, potentially strengthening his position in negotiations by announcing a new boxing promotion in Saudi Arabia. However, increasing subscription fees and reduced viewership for UFC events on ESPN+ may complicate the renewal process.
MLB Seeks New Projects and Attention
Major League Baseball (MLB) has mutually agreed with ESPN to end its 35-year partnership after the 2025 season. The league unhappy with ESPN’s offer to revalue its rights, citing reduced content and falling subscription numbers. MLB is exploring newer, more robust streaming services to broadcast its games.
Despite a exhausting 162-game regular season, MLB enjoys strong viewership for its games. Key targets include Amazon, NBC, and Netflix for its TV rights negotiations, with Fox also potentially in the mix.
Why ESPN Might Turn Down Three Elite Competitions
ESPN’s strategic shift may involve focusing on core sports competencies and investing in a new direct-to-consumer streaming service called DTC. Launching in late 2025, DTC aims to attract younger audiences with a combination of ESPN sports content, Disney+, and Hulu libraries. This may lead ESPN to let go of Formula 1, UFC, and MLB TV rights, despite their popularity.
FAQ
- Why are these leagues renegotiating their TV deals now?
- All three leagues’ current contracts in the US expire soon, granting them the opportunity to seek better deals.
- What are the main goals of these leagues in renegotiating their TV deals?
- Formula 1 and UFC aim for doubled income, while MLB seeks expanded viewership and new projects to drive attention to the sport.
Did you know? Streaming services are expected to spend up to 23% of their total investment on sports broadcasts by 2025, driving increased competition for top leagues’ TV rights.
Pro Tip: Keep an eye on the ongoing negotiations; the outcome could reshape the sports media landscape in the US.
With the US sports TV market booming, Formula 1, UFC, and MLB are poised to cash in on their increased popularity and negotiate lucrative new TV deals. Stay tuned for updates on these blockbuster negotiations.
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