Broadcasting rights: Canal + made the best offer

The call for tenders for the broadcasting rights of the Formula 1 World Championship in France is causing quite a stir and is expected to continue doing so. Indeed, the newspaper L’Equipe reveals in its October 23 edition that four channels have submitted a bid: TF1, Canal +, M6, and beIN Sport.

The daily newspaper claims that Canal+ has put a €27 million per year offer on the negotiating table to secure these rights. Having shown interest in the premier discipline since its inception, with Grand Prix broadcasts via the premium channel in the late 1980s and early 1990s, and then through its pay-per-view channel, Kiosque, in the early 2000s, Canal+ is betting big on Formula 1. However, the offer presented by the encrypted channel is slightly different from the information previously reported by the Journal du Dimanche, as it would primarily focus on broadcasting through its pay channels (Canal+ and Canal+ Sport), while leaving open the possibility of airing several Grand Prix for free on D8, even though the group’s plans for program distribution are not truly known.

L’Equipe claims that this possibility of highlighting free-to-air Grand Prix races would be a signal sent to Bernie Ecclestone, the head of Formula One Management, which manages the rights of Formula 1 and whose role is both to focus on the financial aspect of the operation and to ensure good exposure of the discipline for sponsors.

On its side, TF1, which has held the rights since 1992 and whose current contract—around 31 million euros per year—is coming to an end, reportedly made an offer significantly lower than that of Canal+. The goal of the leading French and European channel is to reduce costs, which it considers too high relative to the sport’s audience: while it recorded, in the early 2000s, audiences of around 4 million people, the Grand Prix races now attract only 2.7 million enthusiasts on average.

TF1 and M6, once again in competition, fiercely fought in 2007 for the broadcasting rights for the 2008-2012 period, which explains the high fees that TF1 has had to pay since then. This is no longer the case today, and the bid from the sixth channel also faces competition from Canal +.

The situation of beIN Sport, however, is different: while its offer is also lower than that of Canal +, the young channel is primarily seeking to secure the Grand Prix for which broadcast is possible. Having heavily invested in Ligue 1 football to secure a prime place in the French sports television landscape, beIN cannot afford to broadcast Formula 1 races at the same time, particularly most European races – whose start time of 2:00 PM coincides with a Ligue 1 match – or American races, with some kick-offs scheduled for 5:00 PM on Sunday.

Despite everything, for the moment, nothing is decided yet: a TF1 – beIN sport alliance cannot be ruled out against Canal +’s offer. But, according to L’Equipe, the channels are mostly waiting for news from the FOM, which seems to be « long in coming ».