New TV deal underlines Asia's importance to F1

LONDON, England (CNN) -- "My theory is 'go east', young man, not 'go west'."

Formula One supremo Bernie Ecclestone has stayed true to his credo this week as the sport's expansion into the vast Asian market continues apace.

The news that ESPN Star Sports (ESS) has signed a groundbreaking five-year deal with Formula One Management (FOM) for the broadcast rights to F1 racing should come as no surprise.

It is boom time in Asia for F1 and there was no more apt time for Ecclestone, the sport's promoter and commercial rights holder, to have negotiated a new deal.

ESS have broadcast F1 in the region for almost two decades and the new deal allows them to show the sport on any platform -- TV, online, radio and mobile phones -- for the first time.

The deal gives ESS exclusive rights to broadcast grands prix in 24 key Asian markets, including on some terrestrial channels.

"We are extremely delighted to continue our 17-year strong partnership with Formula One Management through this historic new agreement," said ESS managing director Manu Sawhney.

"It is an ideal example of how partners can work together to build and grow a property. ESS continues to be committed to further popularize and build the sport of motor racing among fans in Asia.

"We are very confident that now with many new platforms and avenues including Internet, mobile and radio, F1 fans in Asia can look forward to the most comprehensive and entertaining experience with us."

India, Singapore, Malaysia and South Korea are all included in the deal -- countries with a growing interest in F1.

The streets of Singapore host the sport's first night race at the end of September, while Malaysia, on the calendar since 1999, could host the second floodlit grand prix next year.

India, fueled by the presence of billionaire Vijay Mallya's Force India team, will stage its first grand prix in 2010, the same year that South Korea is expected to join the calendar.

Other Asian races are also held in China and Japan, but the rights to F1 in those territories are held by different media companies.

A similar five-year, cross-platform deal to ESS's signed earlier in the year by the BBC to end ITV's 12-year contract with FOM is estimated to have cost anywhere between $300m and $400m

ESS refused to reveal whether their deal was worth more than the BBC's but with a cumulative reach of more than 310 million viewers and considering Ecclestone's reputation for driving a hard bargain, it is not likely to have come cheap.

There is little doubt the deal is mutually beneficial.

"We are very pleased to have reached this agreement extending our relationship with ESPN Star Sports for a further five years," said Ecclestone.

"Formula One has enjoyed unprecedented growth in popularity throughout Asia over the last few years and we feel that this comprehensive new agreement with ESS will help continue this trend."

The ESS deal has not been included in an annual review of F1's finances carried out by business-focused publication Formula Money, which showed that for the first time TV broadcasting rights earned FOM less money than race-hosting fees.

The new street races for 2008 in Valencia and Singapore helped drive those fees up to $403.5m, more than $23m above what television rights were worth to FOM.

Both Singapore and Valencia have received state funding to help them get onto the F1 calendar as part of moves to boost the cities as tourist and business destinations.