Globo negotiates the return of Formula 1, which is experiencing a crisis behind the scenes with Band

Grupo Globo is in negotiations with Liberty Media to bring Formula 1, the world’s top motorsport category, back to its schedule. The company’s contract with Band is valid until the end of 2025, but there is a crisis behind the scenes.

THE F5 found out that Globo’s plan for the return of F-1 is to broadcast the entire season on SporTV, its subscription television channel, and on Globoplay, its streaming service.

However, free-to-air TV would not be left out. Some iconic races, such as the Brazilian Grand Prix and the Monaco GP, would be broadcast on the channel.

Globo was responsible for the category’s great popularity in Brazil, through uninterrupted broadcasting on open TV between 1981 and 2020. The lack of a competitive Brazilian driver caused Formula 1 to have a drop in audience.

However, Globo sees that showing the races again would be a great commercial opportunity. Even in the darkest years in terms of ratings, Formula 1 has always been an advertising success due to its appeal to the AB classes, with greater purchasing power.

Liberty Media welcomes the return of competition for the Rio de Janeiro broadcaster. The business model for paying for broadcasting rights is still being discussed between the parties. Globo, however, will not go to crazy financial lengths. Band is still trying to find a financial balance in relation to what it pays today. The amounts are considered too high.

Crisis with Band

The possible return of Formula 1 on Globo is linked to a crisis involving Liberty Media and Band, which has been broadcasting in Brazil since 2021.

The contract is still in force but the company has had problems making payments as agreed at the time. Band and Liberty share the amounts paid by sponsors equally. The crisis between Band and Formula 1 was reported by journalist Flávio Ricco.

A case that occurred last year made matters worse. A betting house bought a sponsorship quota worth R$20 million, but did not pay the amount and caused the broadcaster to suffer losses. The problem resulted in a lawsuit.

Wanted by F5Band says it has a contract in force with Formula 1 until 2025.