Formula 1 is big business, raking in billions. Thanks partly to the popular Netflix series “Drive to Survive,” the sport’s profitability has soared. But hosting an F1 race? That’s a costly endeavor.
F1 Hosting Fees
Countries pay a hosting fee to run a Formula 1 Grand Prix. The amount is based on contract deals with Formula One Group (owned by Liberty Media).
If a track pays more, its spot in F1 is more secure. Historical tracks like Monaco and Silverstone might pay less due to their legacy in the sport.
Hosting an F1 race isn’t cheap. Just ask countries like India and Korea who dropped out due to the financial burden. On average, it costs around $40-45 million, but it can vary. This fee covers not just the race but also track preparations, utilities, security, and more.
Fees aren’t uniform across tracks. They can range from $20 million to a whopping $55 million, according to RacingNews365.
Building an F1 Circuit
Building an F1 track isn’t a walk in the park. It requires significant funding and a lot of hard work. The cost can vary based on the country, mainly due to land and material prices.
Typically, the cost to build an F1 circuit is between $250 to $500 million. But some tracks, like Abu Dhabi, have even hit the $1.3 billion mark, making it the priciest F1 track to date.
Here’s a breakdown of the costs:
🛣️ Asphalt Track – Average of $75 million
🌍 Earthworks – Around $50 million
🏟️ Grandstands – Between $30 million and $35 million
🛠️ Pit Building – $50 million to $80 million
🎥 Media Center – $15 million to $25 million
🚑 Medical Center – $5 million to $8 million
🚁💡 Special Electronics – $30 million to $50 million
What Are The Benefits of Hosting an F1 Race?
📈 Tourism Boost:
- Attracts motorsport enthusiasts and travelers globally.
- Results in more hotel stays, dining, and local attraction visits.
🏗️ Infrastructure Upgrades:
- Cities invest in better transportation, roads, and facilities for the event.
- These improvements benefit residents long after the race is over.
🌟 Brand Exposure:
- F1’s global audience gives the host city worldwide attention.
- Showcases city’s culture, landmarks, and vibe.
- Great for future tourism and business investments.
🛠️ Job Creation:
- Hosting F1 creates jobs in event management, hospitality, security, and more.
- The economic boost and infrastructure can lead to even more jobs in the future.
💰 Local Business Boost:
- Souvenir shops, restaurants, and more see increased demand during the race.
- Many businesses offer race-themed items and experiences.