Who will win the 2026 Grand Prix?
Four circuits are seeking contract extensions, with Thailand and South Korea both submitting bids, while India, Rwanda and a host of other countries are reportedly developing infrastructure to secure a spot on the F1 calendar.
Competition is so fierce that these bids often transcend the sport. F1 CEO Stefano Domenicali said in an interview with CNBC’s “Inside Track”: “We have received calls from prime ministers and governments, and they really want to hold a grand prix. ”
“This is not a political issue, this is something very important.”
However, it is an acute political issue for the country that risks losing its spot on the calendar. Belgian Grand Prix added estimated It contributes US$248 million to the national economy every year. So when the country’s prime minister wrote to Domenicali in late 2023, lobbying for an extension of the contract beyond 2025, his message was clear: “There is a need to establish a balance between Europe, the Far East and the United States/Middle East schedule, which will not harm Belgium.
But someone always suffers. Middle Eastern oil-producing countries see F1 as key to diversifying their economies and have invested heavily in achieving this goal. Abu Dhabi hosted its first Grand Prix in 2009, Spend $40 billion to build an artificial island to do it.
“The whole concept of Formula 1 Abu Dhabi started with a blank canvas on Yas Island,” said Saif Rashid Al Noaimi, chief executive of Ethara, the island’s management company. told CNBC.
“There are no plans ahead of the Abu Dhabi Grand Prix.” In 2023, the island will welcome 34 million visitors.
Saudi Arabia, which reportedly considering Buying F1 outright also uses the sport to enhance its appeal as a tourist destination. a survey Conducted by YouGov Racing fans across the U.S. are more than twice as likely as other Americans to consider traveling to Saudi Arabia, the 2023 survey shows.
“Formula 1 doesn’t showcase the race, it showcases the city,” Robin Fenwick, chief executive of sports marketing agency Right Formula, told CNBC.
“This is outstanding for the local economic impact and the lasting legacy it creates.”
Think Monaco. The streets surrounding the port of Monte Carlo are synonymous with glitz, glamor and racing. “Some stores are making almost three months’ worth of revenue in just four days,” Guy Antognelli, general manager of the Monaco government’s tourist and convention authority, told CNBC.
“But because it was held at the same time as the Cannes Film Festival, the Côte d’Azur was really the center of the media tech world at the time.”
However, with Monaco currently paying nearly a third of what Saudi Arabia does to host the race ($20 million), F1 may be reluctant to extend the country’s deal after it expires in 2025.Bloomberg interview Earlier this year, McLaren chief executive Zac Brown said the sport would continue to exist without Monaco: “Some might say: ‘Wait a minute, there are other venues that are driving similar TV ratings, exciting events. games and contributed more to the growth of the sport. Miami, Vegas, Singapore – these are great games.
F1 traditionalists will counter that the commercial focus will ultimately come at the expense of the sport. ‘Dynamic pricing’ algorithm pushes Silverstone four-day grandstand ticket price to £600 ($774) by 2024 draw criticism F1 legend Lewis Hamilton has warned families not to be put off by high prices.
Third-place finisher Carlos Sainz of Spain and Scuderia Ferrari celebrates on the podium during the Italian F1 Grand Prix at Autodromo Nazionale Monza on September 3, 2023 in Monza, Italy.
Dan Istitene – Formula 1 | Formula 1 | Getty Images
However, the main reason for the price increase is the growing popularity of Grand Prix weekends among families. Concerts by global stars such as Miami’s Ed Sheeran and Silverstone’s Stormzy have drawn larger crowds to race weekends, pushing F1 further into the mainstream.
Supporters of the “Super Bowl” model point out that the Las Vegas Grand Prix adds $1.2 billion in economic value through flights, hotel reservations and restaurant revenue, as well as F1’s investment in infrastructure to host the event.
“I know how big the impact of the Super Bowl is on the economy,” Domenicali told CNBC. “We’re bigger.”
To continue to grow, F1 needs to draw a clear line between new audiences to the sport and core racing fans. This requires careful consideration not only of which new experiences they introduce for fans, but also which events they remove from their calendars. Like it or not, F1’s growing economic clout means any decision will have a significant impact on someone.
