Apple revs up for F1 rights: Here's what to know

Key Concepts

• Apple TV media rights deal with Formula 1 (F1)
• US rights for all F1 races
• Apple TV platform (formerly Apple TV Plus)
• F1 as a "buy low candidate"
• Historical media rights valuation of F1
• Emerging sports and women's sports as investment opportunities

Apple's Potential F1 Media Rights Deal

There are significant reports indicating that Apple is nearing an agreement to acquire the media rights for all Formula 1 (F1) races in the United States. This deal would integrate F1 content onto the Apple TV platform, which was recently rebranded from Apple TV Plus. This move would expand Apple's sports portfolio, which already includes Major League Soccer (MLS) and a limited selection of Major League Baseball (MLB) games.

F1 as a "Buy Low Candidate"

The rationale behind Apple's potential interest in F1, as explained by an executive named Eddie, is that F1 is still considered a "buy low candidate." This perspective is particularly noteworthy given the substantial increase in F1's media rights valuation over the past decade.

• Historical Context: Approximately 12 years ago, NBC paid around $4 million annually for F1 rights.
• Current Valuation: The reported figure for Apple's potential deal is approximately $140 million per year.
• Executive Perspective: The fact that F1 is still viewed as an undervalued asset by some executives, despite this significant price appreciation, highlights a strategic mindset towards emerging sports.

Emerging Sports and Investment Opportunities

The sentiment that F1 is a "buy low candidate" reflects a broader trend among executives who see potential in "emerging sports." This category also includes women's sports, which have experienced a considerable rise in media rights valuations, particularly in women's basketball. However, the underlying belief persists among many executives that these areas represent opportunities for future growth and are therefore still considered "buy low candidates." This suggests a long-term investment strategy focused on sports properties with untapped potential.