How Much? Amount That Madrid Had To Pay F1 To Organize Grand Prix Revealed

F1
by Adam OndrikFriday, 26 January 2024 at 03:00
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How much money does it cost for a circuit to be included in F1? Here is how much it is estimated Madrid will be paying yearly to be part of the calendar until 2035.
It was announced this week Madrid will be joining an F1 calendar with a brand new circuit from 2026 and will be part of Formula 1 for at least ten following seasons.
The CEO and president of Formula 1, Stefano Domenicali, asserted that the inclusion of Madrid in the calendar with a long-term contract shows even European countries are willing to invest in the sport of F1. How much exactly are we talking about?
A report from Catalunya-based CCMA through their television station TV3 stated that Madrid agreed on a contract where it will have to pay F1 €48 million (around $52 million) per year.
If we add up the yearly payments over the period of the whole contract, the total sum to secure a Grand Prix for ten years was almost half a billion euros ($520 million).
According to Planet F1, it is believed countries like Azerbaijan, and Saudi Arabia pay around €50 million (around $54 million) every year, so we can see F1 in Baku and Jeddah.
It was speculated Madrid could potentially replace Barcelona in the Formula 1 calendar. CCMA pointed out the difference in the amount Barcelona pays according to their last contract.
The publication estimates F1 receives "only" around €25 million (around $27 million) for running the Spanish Grand Prix at Circuit de Barcelona-Catalunya.
It seems Barcelona will have to significantly raise their bid if the circuit wants to remain as part of Formula One. On the other hand, we can try and put this figure into perspective.
IFEMA, the organizer of the Spanish Grand Prix at Madrid Circuit, claims on their website that the Grand Prix should bring "annual revenues of 450 million euros for Madrid."
If that is the case, it might be a similar figure for Barcelona, and it might make sense for the Catalan government to further invest in a new contract with F1.