Formula One rights 'wanted by Channel 4'

Channel 4 has reportedly opened preliminary talks with Formula One bosses about snapping up broadcast rights to the motorsport when the BBC's deal expires.

Channel 4 wants to pick up Formula One because its young male audience is ideal for attracting advertisers, according to the Evening Standard.

The broadcaster declined to comment on the speculation, but a source said: "There's a perception that Channel 4 isn't interested in sports but they've got the Paralympics next year and the IAAF athletics."

Last weekend, the Sunday Times reported a senior source at the BBC as saying that the corporation will not extend its current five-year deal to cover F1, which is worth an estimated £40 million a year and runs until the end of the 2013 season.

The newspaper claimed that the BBC feels the money spent on F1 would be better used elsewhere, as it attempts to slash its budget by 20% under the new licence fee settlement.

Formula One boss Bernie Ecclestone has stressed that he wants to keep the sport on free-to-air television, despite speculation that pay-TV broadcaster Sky could move for the rights.

"We want Formula One to stay free to viewers. That is 100%," he said.

Channel 4 has reinvested much of the money it saved from axing reality TV series Big Brother last year, but it still has a considerable cash pile for investment.

Alongside its financial results announcement last month, Channel 4 revealed that it has cash reserves of £261m but it wants to retain £100m as a 'rainy day' fund, while a further £100m is required for upfront costs, such as paying suppliers in advance.

That leaves a pot of around £50m that can be invested in content, of which £15m has already been allocated to boost the annual budget of film financing division Film4.

Fellow commercial broadcaster ITV is also thought to be interested in the F1 rights after previously showing the motorsport up to 2008 when the BBC agreed its latest deal.