It is no surprise that there is a lot of money involved in Formula 1. It is one of the most lucrative sports. It generates billions in revenue. Money is the major deciding factor, regarding the teams, cars, and the additional races on the calendar. The Netflix series “Drive to Survive” has become hugely profitable for the sport. It all comes down to money.
There is a hosting fee the countries have to pay for conducting a Formula 1 Grand Prix. The source of the revenue is the contract deals between the sport and the countries hosting. If the tracks are willing to pay more then their future in Formula 1 is secure. Some of the Circuits in the calendar hold a significant value due to their history.
Hosting an F1 race is no joke, it involves a lot of money. Countries like India and Korea couldn’t bear the financial strain and removed themselves from the calendar. It takes about $40-45 Million to host, but the exact amount will be determined by the nation hosting and F1. Apart from the contract fees, the hosting fees also include preparing the racetrack, providing power and water, security details and several other expenses.
The fees to host a race is not the same on every track. Circuits like Monaco, and Silverstone pay less because of their historical advantage. There are several contract agreements which will be negotiated with the F1 management. There are both short-term and long-term contracts in place. Certain countries might not want to bear the financial strain and commit to a lesser period of time than the rest.
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There is no fixed hosting fees, it varies from track to track
The hosting fees vary from $20 Million to $55 Million depending on the track. Countries like Qatar, Azerbaijan, and Saudi Arabia pay a whooping amount of $55 Million to stay on the calendar. The countries hosting benefit through tourism, the hotels, the tickets, media coverage and local businesses to name a few.
Qatar pays $55 million each year to stay on the calendar. They have a long-term F1 contract of 10 years. Other countries like Dubai, Australia, Saudi Arabia, Canada, and Bahrain also have long-term deals. These circuits will remain in Formula 1 for several years. The Bahrain GP will stay on the calendar till 2036. That’s by far the longest deal. Hosting a race can go up to billions.
The sport has become more popular in recent times and this leads to its financial growth as well. This makes a lot of countries come forward to host a Grand Prix. We saw the recent addition of Las Vegas GP which will be good for the business. There is nothing like racing in the “Sin City”. This is all hyped up and the costs of the tickets are very high. As the popularity of the sport is growing the countries may need to add more chips to the table to stay in the F1 calendar.
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