Apple reportedly interested in global Formula One rights

Even as media companies are still navigating the choppy waters of their industry, Apple doesn't plan to sit still when it comes to sports broadcasting rights.

BusinessF1 Magazine reports that "Apple has 'wargamed' the sport and is considering making a 'blockbuster' offer to Formula 1 Group for the global rights for its world championship on its channel." 

In adding the circuit to Apple TV+, the company would offer upward of $2 billion for worldwide rights, doubling what F1 currently receives from its broadcasting partners.

In the proposal, Apple would start with 25% exclusivity until eventually ramping up to 100% exclusivity as other broadcasting pacts expire. The report then said that Apple would aim for a seven-year deal at a set price. No one from F1 or Apple offered direct comment to the report.

F1 would be an interesting addition to Apple's sports portfolio. A 10-year pact for the rights to Major League Soccer, started in earnest this season until the world's best player, Lionel Messi, finally made his way stateside to play for Inter Miami. The Argentinian icon has been credited with a significant spike in Apple TV+ subscriptions, yet it's a challenge to determine if those who signed up for Messi are also watching other teams. Apple also just finished its second season of its deal to broadcast some Friday night Major League Baseball games.

The company did swing and miss on two major football deals. It was in the running for NFL Sunday Ticket, which ended up going to YouTube TV. It also planned to pick up exclusive rights to the Pac-12 Conference in a much-maligned deal that was proposed to schools before the group imploded over the summer. 

F1 is owned by American-based Liberty Media, which also owns the Atlanta Braves through a newly created separate holding group. Talk about the business of Formula One may also be spurred on by some of Liberty's recent moves. In addition to spinning off the Braves, Liberty is also considering buying the rest of SiriusXM (it already has an 83% stake in the satellite radio company) and merging it with the rest of its radio operations to create another holding company. 

A potential broadcasting deal with Apple would be a massive uptick in revenue for Liberty. Additionally, despite the drop in social media buzz, F1 is still doing well in the United States, which emerged as a premier market over the past five years.