Formula 1 is scaling new heights with each passing day. But while the sporting side of the spectacle is inherent to its success, in today’s day and age, the economics of F1 cannot be ignored. This is exactly why Apple has decided to formally bid to get exclusive reigns over the sport’s broadcasting rights. In a deal valued in the range of an eye-watering $2,000,000,000 per year, sports business expert, Joe Pompliano believes that F1 is now putting the likes of NFL and NBA to shame with their global grip over the sports industry.
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Formula 1 is more than just the racing action it serves us with on race weekends. The entire allure of the sport goes deeper than just the numbers. Netflix’s Drive to Survive opened the floodgates for new fans to entice themselves with the drama and the stories that actually transpire in the paddock that makes F1 far more engaging than their American counterparts such as the NFL and NBA.
4) But to turn the business around and make it profitable, Liberty Media knew they needed the US.
Why?
Because it’s the most lucrative sports market globally.
For example, F1’s global fanbase is ~2-3x larger than the NFL, but the NFL brings in ~8x more revenue annually. pic.twitter.com/fBzBSCuY4e
— Joe Pompliano (@JoePompliano) May 8, 2022
This coupled with the sport’s demographics is where F1 truly finds the edge over its competitors. According to Pompliano, while American Football and Basketball are huge sporting entities in their own rights, they haven’t scaled the global heights of popularity as Formula 1.
F1 and Apple a match made in heaven, NFL and American favorites snubbed
F1 and Apple tying the knot in terms of broadcasting exclusivity isn’t a far-fetched notion. As pointed out by Pompliano, the two entities are already in collaboration with each other, and the sport’s biggest star Lewis Hamilton is involved in them both.
With a Hamilton documentary and a blockbuster F1 film starring Brad Pitt and produced by the 7x champion already in the pipeline, an exclusive broadcasting deal is a commercial no-brainer per Pompliano.
Lewis Hamilton has confirmed that he will get his own Apple documentary.
“I thought I’d already announced it. Yeah, I’m producing my documentary, along with Apple. It feels strange having a camera pointing around, but it’s really about my life, it’s about my career, and the… pic.twitter.com/umfT3unS9M
— Fastest Pitstop (@FastestPitStop) June 1, 2023
He points out that, “The NFL, NBA, MLB, NHL, Premier League, La Liga, Bundesliga, Ligue 1, and Serie A are all big — but none of them are truly global like Formula 1.” In addition to this, F1’s fanbase is on average around 18 years younger at 32 compared to sports like the NFL. Naturally, this is another factor for Apple to consider F1 over other global sports.
On paper, this is a match made in heaven with F1 still growing in America with the potential to meteorically do so for the foreseeable future. That being said, the entire picture isn’t as rosy as it seems.
Despite aligned goals, Apple could potentially ruin Formula 1
There is always a flip side to every conversation. Currently, the agenda that holds priority for F1 over all other things is accessibility and growth. And while partnering with Apple could potentially boost their revenue, it could also distort the core of F1’s vision for the future.
Pompliano explained, “Part of me thinks this is silly because moving from open-end broadcasting deals to a closed-end streaming deal is the quickest way to stunt growth.” But he was quick to rebuff his apprehensions, too. He concluded, “But part of me also likes the idea because, if you’re already an F1 fan, having all the content in one central place is an increasingly important luxury.”
While F1 is on the path to dethroning the likes of the NFL, even if this deal comes through, they will still be falling just short of the $3,000,000,000 per year benchmark set by the NFL back in 2013 when they agreed to a 9-year broadcasting deal with NBC, CBS, and Fox.
