Formula 1 is sticking with ESPN at a much higher price.

F1 and ESPN have agreed to a three-year contract for U.S. broadcast rights worth $75 million to $90 million annually, per Sports Business Journal.

Most races will be on ESPN or ABC, both of which are owned by Disney. ESPN will also have the option to air a certain number of races on its ESPN+ streaming service.

• ESPN’s current deal, which was signed in 2019 and expires this year, was worth $5 million per year.
• Amazon and Comcast also submitted bids but were informed by F1 that those proposals have been rejected. Amazon’s bid was reportedly around $100 million.

VW Companies Hit Brakes

Audi and Porsche are close to joining Formula 1, but first they want to make sure they get a look at the rules.

The two Volkswagen-owned motor companies were set to announce their entrance into the global racing series but are waiting on engine regulations for 2026 to be finalized. 

An announcement from the FIA World Motorsport Council was expected this month but has been pushed back to July. Once the regulations are announced, each company will have 15 days to decide to join Formula 1 in 2026.

Porsche is reportedly in advanced partnership talks with Red Bull Racing, the current leaders in the Constructors’ Championship.

Audi could partner with or even purchase Sauber’s Alfa Romeo team. The German brand may also connect with Aston Martin or Williams.

In April, Audi reportedly offered McLaren $718 million for a stake in its F1 unit.

Esports collective FaZe Clan is one step closer to leveling up after the SEC approved its deal to go public via a merger with a special-purpose acquisition company. 

The company first announced plans to go public in October 2021 through a merger with blank-check company B. Riley Principal 150 Merger Corp., which valued the combined entity at $1 billion.

• A completed merger would give FaZe the highest valuation ever for an esports company.
• FaZe would be rebranded as FaZe Holdings Inc. and traded on the Nasdaq index.

However, a deal to go public still needs to clear two major hurdles.

The merger requires approval by BRPM shareholders, who will vote during a special meeting on July 15. In addition, FaZe and BRPM must complete all closing terms of the merger, which include having sufficient funds in BRPM’s trust account.

Funds are needed in case BRPM shareholders decide to close their positions if the merger is approved by at least 36% of the shares.

Ups and Downs

In April, FaZe submitted an amended filing to the SEC indicating that it posted an adjusted EBITDA loss of $28.7 million in FY2021, compared to a projected loss of $19 million.

However, FaZe is still valuable, according to Forbes’ 2022 list of the most valuable esports companies, ranking fourth with a $400 million valuation — a 31% increase compared to 2020.

As owner of Ligue 1 club Angers, Saïd Chabane could acquire players and then transfer them at a much higher price. Now he’s doing that with the entire club.

Chabane is reportedly set to sell the team for $84 million. He initially bought the team in 2011 for $1.8 million.

• The buyer is believed to be an American investment fund.
• One source told Forbes that Germania Financial Services will purchase the club, but the report has not been substantiated.

When Chabane purchased the club, it was in France’s second-division Ligue 2. It was promoted in 2015 and has remained in Ligue 1 since. 

Angers was losing around $1 million on $11 million in revenue in 2011. In 2018-19, the club’s fortunes had turned around: It banked $3.5 million on $34 million in revenue, thanks primarily to $22.7 million from Ligue 1’s broadcasting deals. Ligue 2 teams received only $5.4 million.

Private Equity Stakes Its Claim

In March, CVC Capital Partners acquired 13% of Ligue 1’s media rights business for $1.6 billion.

The league reported $680.4 million in losses from the 2020-21 season due to the pandemic.

La Liga struck a similar, $2.1 billion deal with CVC in December for a stake in its media and broadcast rights over 50 years.

After negotiations filled with conflict, the top-flight Turkish soccer league has agreed to a new media rights deal.

The Turkish Süper Lig and the second level TFF 1. Lig’s broadcast rights will continue to be held exclusively by BeIN Sports and its subsidiary, Digiturk. 

• The two-year deal is reportedly worth just under $370 million per season. 
• BeIN can broadcast matches internationally on its other networks or sell the rights in territories where it doesn’t have coverage.

BeIN and the Turkish Football Federation agreed to a five-year exclusive deal worth $2.5 billion in 2016, which was to run through the 2021-22 season. BeIN renegotiated the most recent season down to $370 million from $500 million.

Tricky Talks

While Digiturk has been the exclusive broadcaster of the two leagues for more than 20 years, the relationship appeared close to ending earlier this year.

BeIN declined to renew its previous contract, allowing the rights to go to an open auction. The Turkish Football Federation was reportedly prepared to accept an offer from the Saran Group of $150 million for half its matches.

Last year, Ali Koc, the president of Turkish Süper Lig team Fenerbahce, stoked tensions by accusing BeIN of purposefully hurting his team by manipulating replays on their way to the video assistant referee.