Formula 1 is one of the major sports in the world. It is also a very lucrative business. With every business, there are costs or expenses. So, how much does it cost to host an F1 race?
If you are new to formula 1 racing, I am sure you have been fascinated by the many tracks the cars race on.
They are multi-million racing tracks, equipped with modern equipment. You will also find state of the art technology and communication facilities.
As you can see, hosting a formula one race is not cheap. It is equally not easy.
It costs money to host an F1 race.
In the 2022 season, there are twenty three races. This means that formula 1 circus will take place in all the 23 tracks, across continents.
Related: F1 Races in the 2022 Season
To host a formula one race, you need a few things to be put in place. You need to build a track and associated infrastructure.
In this article, I will help you understand how much it costs to host an F1 race. You will understand what is needed and how much it costs to install.
To make money, every business requires an investment. It is the same with hosting a formula one race in your city or country.
How Much Does It Cost to Host an F1 Race?
To host the F1 today, it will cost you an average of $40 million per year as the promoter of the event.
In this regard, the total cost of hosting an F1 race depends on the contract the host country has with F1 management.
For example, the contract for the Saudi Arabia GP is for 15 years. Miami Grand Prix will run for 10 years and Las Vegas Grand Prix will start in 2023 for a three-year period.
However, the annual cost of hosting a formula one race is just one part of the bigger project.
To host the F1 in your city or country, there is need to invest in constructing the facilities including the racing track.
When you look at previous projects, it can cost US$270 million to over US$ 1 billion to build up infrastructure to host a formula 1 race.
In this regard, the cost of constructing a new F1 track can increase the total cost of hosting an F1 race.
As you have seen, it costs an estimated $40 million per year to host an F1 race today.
This is the amount that a promoter pays to the F1 management.
It forms one of the streams of income on how formula one makes money. There are other ways F1 makes money.
Related: How Formula 1 Makes Money
As the current season in 2022 progresses, there are 23 races in total.
It is estimated that F1 is going to earn about $700 million this year from the fees paid to host the various races across the globe.
In conclusion, hosting a formula one race cost money.
There are many things that are required to have a successful F1 race weekend.
As a start, the promoter needs to have an estimated $40 million to host the F1 an annual basis.
While it might sound like a lot of money, many countries are looking for an opportunity to host the F1 races.
This is because there are benefits that come with hosting a global sport like Formula 1.