Rio Motorsports Pulls Out Of F1 Deal
ollowing the cancellation of a five-year broadcast deal with Rio Motorsports, Formula One (F1) has been forced to restart media rights negotiations in Brazil.
Rio Motorsports was preparing to secure sub-licensing deals for 2021-25 rights across both digital broadcasters and Brazilian pay-TV, free-to-air (FTA).
Only two months following the agreement, which took place in September, Rio Motorsports have cancelled the agreement, based on issues surrounding the race calendar caused by COVID-19 related complications.
According to Maquina do Esporte, lack of financial stability from Rio Motorsports also contributed to the investment firm backing out of the deal.
Rio Motorsports said in a statement: “Given the scenario, added to the possibility of this new wave expanding to other continents, Rio Motorsports re-evaluated this investment and made room for Formula One to negotiate directly with broadcasters in Brazil.”
A provisional agreement had also been reached a month ago to facilitate an event in Rio de Janeiro, whether or not this deal will also be effected is not yet known; though the firm is also funding the construction of a new race track in the Samba city.
Rio Motorsports have also renounced Brazilian rights to the MotoGP global motorcycling series this year, after reportedly defaulting on its payments.
Formula One has also been expected to attract criticism for its decision to hold the Grand Prix in Saudi Arabia next year, due to the country’s human rights reputation.
Negotiations with a broadcast partner, Globo, are rumoured to be underway, with open negotiations with interested broadcasters taking place.
Partners will compete with the series’ F1 pro direct-to-consumer (DTC) streaming service, which will be live for the 2021 season.
Globo has agreed to a Brazilian broadcast partnership for the inaugural Extreme E 2021 season, in a deal that will include highlights and live-coverage of the new, all-electric, off-road SUV racing series.
The series will include five events taking place from the 23rd and 24th of October 2021, in the Brazilian Amazon rainforest.