After months and months of many rumors and hopes. Last Tuesday it became official Formula 1 will return to Madrid from 2026, more than four decades after his last GP. The idea that the institutions of the capital have is that with the help of the ‘Great Circus’ they can create a show like the one experienced in Miami since it came on the calendar. But of course, the question is what all these shows mean for the city on an economic level and what impact it has.
“100% private” investment
One of the strong points on which Ayuso and the rest of Madrid’s political environment based their project was that the necessary money would not come from its citizens in any case. Currently, the fee paid by each circuit depends on its status within the calendar and may vary. Currently, the range is from 20 million to 57 million. To all this must be added all the costs involved in the work and the offer of services that a GP must have. During the presentation they did not officially name the names but they again assured that it will be 100% private
Regarding the annual fee, it will be IFEMA, whose ownership is 62% public, who will pay. Despite this, Almeida commented that the agreement was reached as long as “there is no investment of public money.”
Among the names associated with this game is José Vicente de los Mozos himself, who is also in charge Ifema He is the CEO of Indra. On the other hand, as MD found out, there is the owner of the Miami Dolphins and owner of the Netherlands GP organization, Stephen Ross. The American is also one of the great magnates behind the Miami GPmirror where you want to look at Madrid.
Another important name that counts for the contest where everyone will be financed is that of Carlos Slima Mexican billionaire who is closely associated with Formula 1 and maintains a good relationship with Sergio ‘Checo’ Pérez.
It almost doubles what Barcelona put up
According to TV3, Madrid will give F1 almost double the amount to host the GP Circuit de Barcelona-Catalunya so far, they are 26 million euros. If Montmeló wants to stay on the calendar and continue beyond 2026, it needs to increase. Of course, there is no need to reach such values as Madrid because of its past history with the highest category of motorsport.
What will be the effect?
If the word is finally kept and the Madrid GP does not involve a single euro of public money, the plan will be wonderful for the interests of the city. And as the institutions commented in the presentation, the income for the Spanish capital will vary between 450 and 500 million euros annually. Furthermore, as reported by Ayuso, the GP organization will also indicate the creation of 10,000 jobs.
The ghost of Valencia
Although everything seems rosy, unfortunately in Spain there is already a similar situation that ended very badly. The Valencia urban circuit that hosted a GP from 2008 to 2012 paid nothing to the citizens of Valencia but The bankruptcy of the promoters led to expenses that had to be borne by the administration and led to cases of corruption. around the event.
Valencia had to be on the calendar until 2014 but in 2013 they could no longer hold the GP. So, the economic hole is speculated to have reached 300 million euros and the project was abandoned.
Source: La Verdad
I’m Rose Herman and I work as an author for Today Times Live. My expertise lies in writing about sports, a passion of mine that has been with me since childhood. As part of my job, I provide comprehensive coverage on everything from football to tennis to golf.
