BBC's Formula One 'Heading For Pits'

With programming costing a huge £1 per viewer, the BBC may be forced to drop its Formula One (F1) motor racing coverage.

The BBC must make savings and the £60m a year F1 costs - or £3m for each race - it is the most expensive programme being broadcast.

The Sunday Times has reported insiders who say that the trade-off if it was axed would be that the BBC would be able to stave off closing one of its digital channels.

The broadcaster needs to make savings required by the freeze in the licence fee until April 2017 and F1 is hugely vulnerable and it is understood that the BBC do not intend to re-bid for the contract when it expires in November 2013.

The new Chairman of the BBC Trust, Lord Patten, has already said that the BBC4 channel might have to be closed to make the required savings instead.

Now, if the iconic motor racing were to go off the screen, then the he cost of covering 19 races would be saved immediately.

The BBC currently pays more than the entire annual budget for BBC4, or £1 a head for every viewer - in comparison to an average of 7p for an hour broadcast on BBC1 and BBC2 - for the racing coverage.

They now think that as viewing figures aren't as good as they were, with most races only attracting between two million and four million viewers, it might be an easier option.

If the BBC decides to go ahead with plans to drop F1, then it would probably also safeguard the future of Wimbledon coverage - which started in 3D as well as normal TV coverage this year on 20th June.

However, the contract to cover the F1 Championships runs until 2014.

Meanwhile, News Corporation, the global media giant and parent company of The Times, is said to be formulating plans to buy Formula One.

But, if the BBC was to drop its TV coverage that would muddy the waters for the News Corp negotiations.

In April, these were reported to be at only at an exploratory stage anyway, with senior executives understood to be examining ways of bringing Formula One racing onboard.

James Murdoch, News Corp's Deputy Chief Operating Officer and the Chairman of BSkyB, the satellite broadcaster in which News Corp has a 39% is known to be a fan and he will be watching with interest.

However, Bernie Ecclestone, Chief Executive of the commercial rights-holder, is so far keeping to his line that "the sport was not for sale".

There's a lot to play for as, if News Corporation were to buy F1 and then seek to have exclusive broadcast rights - if the BBC does not bid again - then that could run foul of monopoly regulations, being both owner and broadcaster of the events.

(BMcC)