Apple is negotiating to get the US rights to broadcast Formula 1 as the internet giant expands its live sports programming and builds on the success of its popular film based on the racing car series.
Various media reports stated that when the broadcast deal opens up next year, the iPhone manufacturer plans to challenge Disney’s ESPN, the current American broadcaster of Formula 1.
Considering that Brad Pitt’s F1 is the company’s first major box office hit since it started producing original content for its Apple TV+ streaming service, demand is high.
Liberty Media, the US owners of Formula 1, hopes that by drawing in younger, female, and American viewers, the movie and Netflix’s Drive to Survive documentary series will have raised the value of the racing rights.
F1’s Box Office Collection
Apple’s highest-grossing film to date is F1, which has grossed approximately $300 million at the box office. This production marks a transition to mainstream spectacles following the commercial failures of Killers of the Flower Moon and Napoleon.
With a 2022 agreement with Major League Baseball to stream games on Friday nights and a more comprehensive agreement with Major League Soccer in North America, Apple has already ventured into the live sports streaming space.
The race car series’ current television partner, ESPN, brings in approximately about $85 million annually. Additionally, F1 charges viewers directly for live race streaming on its own streaming service in the United States.
Prior to the debut of the F1 movie, analysts at Citi had previously predicted that the next US broadcast deal for Formula One may be worth $121 million annually. In 2024, its overall revenue from media rights increased by nearly 8% to approximately $1.1 billion.
According to someone with intimate knowledge of the situation, F1 has not yet decided on its future broadcasting arrangements, and ESPN may still hold the rights.
Formula One is no Longer a Monopoly of ESPN
ESPN had a window of opportunity to negotiate a contract without having to contend with other bidders. But last year, that window closed without a contract, so competitors might now enter the market.
It is anticipated that other bidders would pursue the rights as well. Liberty Media prioritises the US market, and in recent years, it has expanded its race calendar to include Miami and Las Vegas in addition to its grand prix in Austin, Texas.
In 2026, Cadillac, a US brand supported by General Motors and billionaire financier Mark Walter’s TWG Motorsports, will become the eleventh team to compete.
From 554,000 viewers per race in 2018, the year after Liberty Media acquired Formula 1, to around 1.1 million in 2024, F1’s audience on ESPN has doubled. F1 saw an average of 1.3 million spectators over its first 10 events this year, with record attendance in Australia, China, Monaco, Spain, Canada, and Austria.
The $100 billion in services revenue that Apple generates annually, which includes goods like the App Store, iCloud, and Apple Pay, does not include money from Apple TV+ or its production division, Apple Studios.
Gujarat International Finance Tec-City (GIFT City), located in Gujarat, is on the verge of a monumental addition to its infrastructure that will put it on the global racing map – the development of a Formula 1 motor racing circuit.
With an estimated cost of up to Rs 10,000 crore, this ambitious project has attracted six teams of renowned race track designers, all vying for the opportunity to leave their mark on the world of motorsports and contribute to the growth and prominence of GIFT City.
The Importance of Motor Racing Circuits in the Sports Industry
Motor racing circuits hold a special place in the sports industry, captivating audiences with the adrenaline-fueled action they offer. As per the survey by Nielsen in 2019, India was among the top five countries by the number of fans (31.1m).
These circuits serve as the battlegrounds where drivers showcase their skills, pushing the limits of speed and precision. Not only do these events provide thrilling entertainment for spectators, but they also generate significant economic activity by attracting tourists, sponsors, and media attention.
Formula 1’s global revenue primarily comes from various sources, including broadcasting rights, race hosting fees, sponsorship deals, and merchandise sales. Broadcasting rights alone constitute a significant portion of Formula 1’s revenue, with deals worth hundreds of millions of dollars signed with broadcasters worldwide.
The addition of a Formula 1 circuit in GIFT City will not only elevate the city’s status but also bring about a range of exciting opportunities.
In the quest to design GIFT City’s Formula 1 circuit, six teams of highly esteemed race track designers had stepped up to the challenge. Each team brought their unique expertise and experience to the table. From renowned architects to motorsport specialists, these designers won’t leave any stone unturned in their pursuit of excellence.
Formula 1 News: New Tilke track in India could host F1 race https://t.co/qElgoTEmzO German Formula 1 racetrack designer Tilke is bidding to design a new F1 track in Gujarat International Finance Tec-City (GIFT City) in India. pic.twitter.com/bbSNcyg7mp
As per a report by the Economic Times, a consortium led by German Formula 1 racetrack designer Tilke, in collaboration with real estate consultancy firm CBRE and architecture firm Arcop, emerged as the top-ranked contender among six international consultants vying to design a racetrack in Gujarat’s GIFT City.
This project aims to not only establish the financial center as a global financial hub but also position it as an international sporting destination, as per the report. The Tilke-led consortium achieved a remarkable 98% score in the evaluation conducted by the Sports Authority of Gujarat on March 7-8, as per the report.
Factors to Consider in Designing a Formula 1 Circuit
Designing a Formula 1 circuit is a complex task that requires a deep understanding of the sport’s technical requirements and the ability to create a challenging yet safe track.
Factors such as track length, layout, elevation changes, and corner design all play a crucial role in determining the quality and competitiveness of a circuit. Additionally, considerations like pit lane positioning, spectator seating, and infrastructure development must be carefully planned to enhance the overall experience for everyone involved.
Designing a Formula 1 track is a complex and intricate process that requires careful planning, adherence to safety standards, and consideration of the unique challenges posed by high-speed racing. Each track offers its distinct challenges and characteristics, making it essential for designers to consider multiple factors during the planning phase. The result is a thrilling circuit that challenges drivers and delights fans around the world, said PwC India Sports Advisory Consultant Karamveer Singh Bakshi on his personal blog post at professional networking site LinkedIn.
Key Challenges in Developing the Circuit in GIFT City
Developing a Formula 1 circuit in GIFT City comes with its own set of challenges. The construction process requires meticulous planning and execution, taking into account the city’s existing infrastructure, land availability, and environmental impact. Balancing the need for speed and safety while adhering to the strict guidelines set by the International Automobile Federation (FIA) poses another significant challenge. The selected race track designer will need to navigate these obstacles to create a world-class circuit that stands the test of time.
Estimated Cost and Economic Impact of the Motor Racing Circuit
The development of a Formula 1 circuit in GIFT City comes with a substantial price tag, estimated to be up to Rs 10,000 crore. While the initial investment may seem significant, the economic impact of the circuit is expected to be substantial. The influx of motorsports enthusiasts, tourists, and media attention will drive local businesses, hotels, and restaurants, creating job opportunities and boosting the overall economy. Additionally, the circuit will attract sponsorship deals and potentially pave the way for other motorsport-related ventures in the region.
As per experts, the Formula 1 circuit within GIFT City brings forth a multitude of ripple effects:
Motorsport Progression: Serving as a platform to cultivate and exhibit Indian talent on the global motorsport stage.
Enhancing Infrastructure: Driving enhancements in transportation, hospitality, and entertainment facilities.
Stimulating Sports Sector: Igniting growth within the sports industry and attracting skilled professionals.
International Recognition: Elevating India’s global profile and attractiveness for investment.
Economic Implications: Generating employment opportunities, stimulating tourism, and fostering advancements in infrastructure.
Potential Benefits for GIFT City and the Surrounding Region
The introduction of a Formula 1 circuit in GIFT City holds immense potential for both the city itself and the surrounding region. Beyond the economic benefits, the circuit will elevate GIFT City’s status as a premier destination, putting it on the map alongside other global racing destinations.
The increased visibility and prestige will attract investments, spur infrastructure development, and position GIFT City as a hub for motorsports and related industries. This, in turn, will create a ripple effect, benefiting the region as a whole.
🚨 India will be up against Spain, Mexico, Indonesia, Turkey, Poland and clear favorites Qatar to bid for Summer Olympics, 2036. pic.twitter.com/iAlHYIiVIh
The sport activity will not only bring in huge foreign investment, global interest and tourism but also make India, a capable contender for hosting the 2036 Olympics.
In 2021, the Ahmedabad Urban Development Authority (AUDA) enlisted the services of PricewaterhouseCoopers (PwC) as its consultant. PwC identified 22 potential sites in Ahmedabad and Gandhinagar capable of hosting the Olympics. Notably, a significant sports complex known as the Sardar Vallabhbhai Patel Sports Enclave (SVPSE) is under construction in Ahmedabad, featuring multiple sporting venues.
Environmental Considerations and Sustainability in the Circuit Design
In an era of increased environmental consciousness, sustainable practices and environmental considerations play a crucial role in the design of modern motor racing circuits. The selected race track designer will need to incorporate sustainable elements into the circuit design, ensuring minimal environmental impact and maximum efficiency. From utilizing renewable energy sources for power generation to implementing water conservation measures, sustainability will be a key aspect of GIFT City’s Formula 1 circuit.
#WATCH | Chennai, Tamil Nadu: Union Minister Anurag Thakur says, “India is working towards hosting the 2036 Olympics, we are going to bid for that. I’m sure with the kind of young population and the number of athletes we have, we have become the fifth largest economy in the world… pic.twitter.com/sYjaFakWO2
The GIFT city places great importance on integrating environmental considerations and green building practices, maximizing the efficient use of energy, water, construction materials, and implementing effective traffic management strategies. This underscores a refined planning approach aimed at fostering sustainable development.
Timeline and Expected Milestones for the Project
Developing a Formula 1 circuit is a complex and time-consuming process. While an exact timeline for GIFT City’s circuit is yet to be finalized, several milestones can be expected along the way. These include the selection of the winning race track designer, obtaining necessary permits and clearances, land acquisition, construction and infrastructure development, and finally, the grand unveiling of the completed circuit. Each milestone will mark a significant step closer to realizing the dream of hosting Formula 1 races in GIFT City.
Conclusion and Anticipation for the Future of Motor Racing in GIFT City
As GIFT City gears up to unveil its high-speed masterpiece, the excitement in the air is palpable. The development of a Formula 1 motor racing circuit holds immense promise for GIFT City, its residents, and the entire region.
With the potential to boost the local economy, elevate the city’s status, and attract motorsports enthusiasts from around the world, the circuit represents a significant step forward in GIFT City’s journey towards becoming a global powerhouse. As the project progresses, the anticipation for the future of motor racing in GIFT City continues to build, promising a thrilling future for all involved.
FAQs
What is GIFT City?
Gujarat International Finance Tec-City (GIFT City) is a business district currently under construction in Ahmedabad district in Gujarat state, India.
Will the GIFT city get a F1 track?
GIFT City in India is making strides towards the development of a Formula 1 motor racing circuit and aims to be a potential host for the Olympics in 2036. Six teams of renowned race track designers are vying to create the circuit, with an estimated cost reaching up to Rs 10,000 crore.
When will GIFT City complete?
To support infrastructure development in and around GIFT City, the Gujarat government aims to commence operations of the metro network by July 2024. Furthermore, a 9-kilometer riverfront along the Sabarmati River adjacent to GIFT City is projected to be finished within the next 2.5 years.
