L&T Motorsport

Formula 1, do we need to spend more?

As we all know F1 is an expensive sport but do we actually know how much it costs to keep an F1 race running. The financial implications are enormous for each location that hosts a race, each location has to spend millions of pounds on infrastructure to accommodate the F1 community.

According to recent findings, the annual running costs of an F1 street race is 57.5 million dollars. The money is spent on marketing and infrastructure, to make the race enjoyable for the fans at the track and the millions of people worldwide.

F1 is still watched by millions of fans worldwide and could be considered one of the most popular but expensive sports in the world.

Typical race tracks like Silverstone and Monza are considered more exciting than street tracks but can be costly to maintain. The construction of a typical track is more expensive than a street circuit, costing an estimated 270 million dollars to construct but can be easier to maintain.

In the last decade more countries have wanted to host a F1 race because it boosts tourism and promotes the country as a whole. Some countries have made a success of hosting a race but the Indian Grand Prix has shown that a country with enormous infrastructure can fail to attract the fans to keep it on the calendar.

Liberty Media’s acquisition of the sport has promised bigger and better things for the fans and the drivers, Liberty have promised to keep many of the European races that have been a staple of the F1 calender.

So over a ten year period, building a Grand Prix circuit and hosting a F1 race costs around 850 million dollars, but each year the cost has risen due to increased demands and inflation.

The financial aspect of the race is only the start, the next part is the real challenge as the race organisers have to promote, organise and execute a race that grabs the worlds attention.

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