The HUGE costs of hosting an F1 race
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- Опубликовано: 8 сен 2024
- There are a HUGE amount of things an F1 track has to pay out for before it can be considered 'ready' for an F1 race.
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That's a good video showcasing why no German GP is hosted this season. The tracks (Nürburgring and Hockenheimring) are both privately owned and the state does not invest in it, even though the races would profit the area a lot. In fact the whole Nürburg area profits from the Nordschleife itself already because major car companies gathered around the area using the track as a test track, while local businesses profit from the events and facilities near the track as well. It's all Nordschleife and Nürburgring in Nürburg, that's why I don't understand why the government does not support the track in any sense
While I think youre probably right mostly, Zandvoort also did not get government support and they make it work. So I would say it should be possibile for germany as well.
@@mboer4 Yes true, but the German tracks did not get a good contract terms and therefore simply lost money by hosting F1 races
I personally think that the German Government doesn’t want to associate itself with a track with the nickname “Green Hell” with a relatively high lethality rate. (Also it was started by the Nazi Party soooo….)
Because germanys government is pure garbage. They lost themselves and have no idea what defines the country are what the people need. Everyone should stay the hell out of germany.
Because the government wants everyone to drive electric and Motorsport doesn’t fit their dreamy view of Germany.
Actually India was not excluded solely based on losses. They wanted to continue but the state Government had problems with taxing. They wanted to tax F1 in the category of luxury than sports which made it not as sustantainable and hence was removed.
or as josh revell says" the auutar pardess government"
Which is super strange they didnt mention this, because they have legitimately made a video on this topic.
Perspective made a vid on it
F1 : The GREATEST racing spectacle on the planet.
Indian Government : Classifies it as "Entertainment".
F1 : Goodbye, have a great time !
@@johnjeremiah3494 F1 itself is going more on the route of entertainment than sport under Liberty media. It's hard to deny that much, just look at all the "location" street races they want to bring in rather than proper tracks.
I'm dying for the return of Indian GP but F1 is making itself too expensive for its own good with its greed for profits.
Breda University did an impact study on the Zandvoort GP 2021 and the results were quite encouraging. Despite the covid restrictions, the 125.000 visitors spent at least an additional 50 million euros on top of 30 million ticket sales, and the event created 500 jobs. And the overall perception of the event was predominantly rated positively by everyone involved. Mind you, this event was created with zero (local) government funding.
Let’s not forget Zandvoort disappeared from the calendar in the 80’s because it wasn’t financially sustainable. Fees are much higher and even events like Silverstone which are always sold out have troubles bringing up the fees.
It’s really nothing short of historic what kind of impact Verstappen’s success has on just the Netherlands. It’s way more expensive to host a race these days, let alone to do it without government funding.
These effects aren’t exclusive to the Netherlands though. Not that long ago Spa was also in trouble and the first years after the Red Bull Ring returned they also had trouble selling tickets.
I’ve visited Austria twice, but when I wanted to buy tickets for it (I usually do this around New Years) the day after Max became champion, all prices where higher and still the big Mitte grandstand was already sold out.
And let’s not forget Max isn’t F1’s only star. Having drivers like Leclerc, Sainz, Norris, Russel, Ocon and Gasly. They are also capable of making the same impact on Monaco, Italy, France, Spain and the UK as Max had in The Netherlands.
F1’s future is bright af.
It's ALWAYS ALWAYS ALWAYS better when you can keep the governments out of it!!!
Would be fun to know how much it costed the 1/2 times GP we went to during the Pandemic, like: Portugal and Qatar
I feel like if F1 is searching for replacements they "stage" the race like Miami and Vegas will be and they foot the whole bill but take all the revenue.
@@arkangelgaming35 I mean, yeah, it needs profit to run, I get your point that they should prioritize the best racing even if the tracks arent as profitable and I agree, but thats never gonna happen again. money talks as cliche as it is
One day when Matt is rich he will build a track called wtf1
No he will make the rich energy ring, the worst track made, they did a video about it.😁👍
@@ruination34 or it would be called SufferRing
That would be the Raidillon Ring actually
@@ruination34 I remembered that. Count me in!
I’ll go to that race!
As a saffa, these costs are the main reason why Kyalami isn’t very likely to happen. The South African economy isn’t strong enough and it’ll take huge investments to get it up and running again for F1… with that said I pray it does make a return to SA and I think it’ll do us the world of good to be able to host such an epic sporting event!
The f1 could fund it like it is with miami and vegas as itll then be a proper world championship going to all 5 continents
@@stopsallmelb let’s hope that’s the case. At the end of the day F1 needs to make its money so if they do decide to help fund the operation then I’ve got no doubt it’ll be a huge success!
Maybe Elon Musk can make it happen
Not sure if people would be eager to flock to South Africa and spend money there considering the crime that’s being reported throughout the country.
Edit: Joburg is where I read most of this
@@stopsallmelb Only if they think it's beneficial for them. They are, after all, a company doing business and not a charity organization.
Honestly baffled as how the Hungarian race costs as much as the season finale in a Gulf country.
Absolute madness.
I have worked in tyhe hotel industry for 2 years, each time F1 comes to town, hotel rates triple, all are close to capacity or overbooked, and its a huge money maker.
But 40M is a bit tooo much.
Especially considering the track is some 15 km outside the city, and traffic there is hugely bottlenecked by available roads. So even if more people were interested, the organizers couldn't hope to increase capacity much, unless they build another motorway to the track, and speed up admission at the car parks...
Yeah alot of tracks struggle to get people to and from the venue. It seems like no one on planet earth expected motor sports to be what it is now, and use excuses like cost traffic, & noise to justify destroying them.
@@peachulemon well, it's more like liberty media's only profit orientated grip is destroying it in my opinion. Yes, it is getting better coverage, growing fan base and more races. But the historic tracks are fading, and blood money dominates new entries to the calendar.
And about Hungaroring, it sits next to one of the main motorways of the country, you wouldn't find any higher capacity roads in the country. The issue is the admittance to the parking is so slow, the motorway completely slows to a standstill. Most of it is down to lack of organisation, as carparks begin to fill, the traffic wardens don't know where to send the people. Like they sold the tickets, they can expect the number of people to arrive...
I went to Jeddah circuit the past 2 races, the time it took for me from entering the parking to the circuit was about 20 minutes. This includes all the procedures like parking and tickets admissions. This is because it is in the middle of the city and everything is electronic.
It is worth it definitely
And here is me debating whether to buy a tube of Pringles if they cost more than £1.50
I would love to see a gp in Finland, they have a grade one track but I can’t see anyone willing to pay the price
Yeah it would be amazing but I don't think we have anyone who is willing to pay for it
@@cappeb i am!!!!!! but there’s just one problem..
@@sebastiannilssontuisku ah yes, convincing the authorities to host the race would be difficult
Money is the least of your worries mate I can see that
One problem with The track IS also that its in middle of nowhere
@Kimi Timoskainen Kymiring between Lahti and Kouvola
That’s why our malaysian sepang circuit pull out from the game and focusing on the motogp instead
Monaco paid the fee only last year. Previously they didn't have to pay to host a GP
Love ur vids Matt. Keep it up 😀
Wow, they charge Monaco now? It used to be either completely free, or a stupid amount like 1 British pound.
The richest place and most boring race given the the race on a platter, whilst better circuits like Nurburgring go begging
All the circuit owners should get together and refuse to pay, and instead be paid for the site rental. You know, like how the real world operates. Then we'll see who needs who more.
I think it is more like a concert. The band is paid a fee, and the venue profits from the revenue they make
@@a.b.8035 Except unlike tens or maybe hundreds of thousands of dollars, it's 30 million dollars. A lot of these circuits don't or barely make any money after the bottom line is calculated and depend on public assistance often.
@@89Ayten That's true, I guess the value in city marketing does it for a lot of venues
There are 100+ tracks around the world that can host an F1 race but there is only 1 F1. also if that would somehow happen then F1 would just lower the price and other tracks would just capitalize on that since the main goal for the owners of the circuits private/government is to make profit/make the city/area profit from the race.
Cries in finnish
1/3 of our drivers have become world champions, but we will (most likely) never host a championship race.
MotoGP is racing there this year 🙂
Cries in Swedish
Yeah, well, at least we've got hockey😂
Love it how you put the classic meme of "Valtteri's traditions" in there 😂
I remember the moment Silverstone had to activate the clause that allowed to terminate the contract
The latest upgrades had been getting done to Silverstone including purpose built “wing” building exclusively for the F1
But it had reached a point where they either sacrificed the F1 race or started to lose money hand over fist
Silverstone’s finances are so tight involving the F1 they almost went bankrupt during the COVID pandemic
Silverstone now pays a steady 25m over the next few seasons but the termination clause is still in there
Silverstone is still on the calendar because Liberty Media wanted to keep it and made a deal but there is no guarantee the deal will be able to be sustained
And F1 chefs say Germany wouldn't be interested in hosting a race. Absolute bs. Germans would love to witness a race again, but Germans just don't want throw a ton money out of the window
If Germans would love to see a race so much then it wouldn't be throwing money out. It would be an investment that would make money. But because Germans weren't actually showing up enough they couldn't make money off it.
I would be interested in buying a Ferrari but I just don't want to throw a ton of money out the window. Yeah no duh they would want a race if it was cheaper. It's whether they want it enough to pay the required amount that people are talking about
Das Wort Chef bedeutet im englischen Koch. Just sayin' :P
India has great potential to host F1 races again and news is that India will have a street circuit for Formula-E and by 2025 there can be races held every year.
And it has been 10 years since an F1 race at Budhh Circuit and I believe the government has changed and is more enthusiastic and eager to spread the motorsport image in India.
Unfortunately, the track location is not ideal.
@@aadixum The track location is fine in fact the circuit is among the best . But local tax restrictions and tax classification disputes by the government are real blame.
I wanted to go to my first F1 race, this year being held in Montreal Canada. It was $1500 a person for the privilege of standing somewhere behind a fence.
Can't wait to go to my first GP; Spanish GP next month! Anyone have any tips/advice?
I would say sit at a corner that sees a lot of action
Don’t bring food or drinks, coz they’ll take them away.
Be ready for 2 hours of waiting in a line
Have fun
The race goes really quick when you're there, make sure you enjoy it all, have fun man!
Take Pillows
Get to the gate on race day at least 2 hours early and when the line gets let go to go to the actual gates get ready to run because there will be a stampede🤣
Exactly why I say my country ( South Africa ) cannot afford this. Yes it would be lovely to have it at Kyalami. But we don't have the money for it. Our government definitely doesn't. And even our wealthiest business men will struggle. Unless F1 stages it here or does a 50/50 with the payment. I can't see it happening. We will see how badly F1 wants to be a global sport. Because if it does, F1 will have to chip in as RSA can't pay for it alone.
The Yas Marina Circuit cost over $1 Billion.
Americans: *Laughs in SoFi Stadium*
Please never stop having sections in the video like 2:57 hahahahah!!
I like the idea of splitting F1 into 2 streams of 12 to 14 races each on alternating weekends with a 4 to 6 race playoff among the top 20 cars at the end of the season.
So many advantages, plus it could ease the cost of getting a new track certified for F1 as there would be more participants paying track fees.
In short, it’s expensive
I can't wait to go to my first grand prix, British grand prix. Any advice/tips
bring suncream
Paddock pass 😏
Just enjoy
Just do not go
Best to watch in British grandprix is in copse corner or in turn 1 to 6. There will be a beautiful overtaking that will hapen in that corner. Just imagine leclerc and verstapen changing position. Hahahahaha
Keep it up your videos are always the best
Its should be exclusively the drivers the decide the track list imo.
They the ones that have to fly around the thing
It's tricky for some tracks. I know that even well used tracks like Silverstone struggle financially sometimes. Maybe cheaper hosting fees might allow ticket prices to be slightly cheaper and more people might attend?
I don't think that's necessarily a solution for all circuits though as the Silverstone GP usually gets close to sold out most years, with only the lowest tier of tickets being available at points.
I can understand how the races provide financial returns to the organizers... In Brazil, the tickets cost between half to three times the Brazilian minimum wage 😐
Cara, um ingresso de stock custa 600 e ainda lota. Quanto você acha que custaria um de F1?
@@drpedroesteves to ligado pô.. mas não deixa de ser surreal..
"it takes several years to build a traditional f1 venue"
Hungary and Saud arabia: are we a joke to you?
Ain't Hungaroring a permanent circuit tho? Also, it has been on the calendar since the 80s, so its safe to say that it has already become traditional
@@zikalokof1challenge414 he was talking about how long does it take to build a permanent circuit compared to street ones.
Hungaroring was built in just 9 months.
Same for Saud Arabia(no its not a street circuit)
@@twlentwo Oh gotcha, sorry for the misinterpretation
Fantastic video. Hopefully some casual fans can better understand the reasons some races disappear. Keep up the good work.
it's crazy how much money exists in F1
About 10 years ago Monaco used to pay around 350k to host the race 🤣🤣🤣
need at least 200milion usd to bring back f1 and turn day circuit to the night circuit on Sepang circuit Malaysia.
Miami charging 2k for a ticket.... im staying home in the A/C those prices are outrageous. but they did sold out.
That's why all new tracks are street circuits purpose built racetracks are just unsustainable.
1:28 That's Drew Scanlon, host of a great podcast called Shift F1. Check it out if you haven't, it's a great listen!
This is why i just want to see the South African GP actually happen. Cause the cost alone is such a deterant. Our government won't help because their people will just steal the money.
So I'm praying Kyalami can get it right, will definitely help our economy
Anc will loot it like the animals they are
ANC will eat the money
Honestly they allow places like China and Brazil to profit from F1 while ignoring their own citizens. So why not allow it in SA as well? Why should corrupt government making millions while people starve be limited to these places lol
Right on about stealing the money, unfortunately. It will be released and quickly disappear. Wa ba tseba batho rena mos.
Not going to happen unfortunately, but it would've been nice. Rand/Dollar is a huge issue. You looking @ minimum of R600 million to R 1 Billion, just to host it. No company in it's right mind will host such an event, they will never be able to recover their cost (ROI) in 10 years for 3 days. If and this is a bloody BIG IF you will have to charge a minimum of R10K - R15K per person per day just to make it viable. This is if you can get a minimum of 60K people per day. Remember what happened to MOTOGP in SA late 90's early 2000's?
If there are caps on how much each team can spend during the season, shouldn't there be a cap on what F1 can charge for a race? Make it as fair as you can for the teams, then by all means make it just as fair for the venues striving to get involved. Just BK's $.02...
Who else loved how well editing were the memes on the video ? 😂😂👏👏
I can't wait till 2023 in Vegas finally a race close enough to go to
i wish we can have least one time in finlad kymiring 🇫🇮 🇫🇮
Happy that Monaco is paying now considering it’s one of the worst races on the calendar
The money and vibe it brings into the community is priceless!
Now I understand why Portimão isn’t on the calendar anymore 😬
Same story for Malaysia can't afford the fee and the profits also not that much.
I figure some tracks should just be grandfathered in, why is taking Monaco off even a discussion, it should stay. . .forever
but as well as
Silverstone
Monza
Interlagos
Suzuka
for their history and location
I got a ticket with my mum also in Silverstone 2022 GP we are in the Vale stand
As someone who will be doing Formula E in Vancouver this year you are leaving out all the audio visual cost and also things like carpet installation at venues which total roughly another $1,000,000
These costs stress me the heck out.
I hope Kuwait gets a grand prix in the future. Their track is a grade 1 circuit and it looks brilliant. There may be some controversy but at least we'll get something different
No
I'd Take that if F1 axes - Qatar, Saudi Arabia, and China.
Look at the track right now
hey! thank you for the video! i was JUST saying on the last video that it would be nice to have a closer look at the f1 race hosting finances! what a coincidence!
i can definitely say that this are expensive since seeing the ticket for the Miami GP are through the roof have to make your money some how
Guess there will be no more Sepang GP ;-;
Oh thats why nobody hosts it in my home country
Alternative title: Why South-Africa won't be on the calander any time soon
I think you brushed over one key aspect - the purchasing of 'soft' diplomatic power through hosting events tied in with sports washing. Think Saudi Arabia, UAE, Russia etc... This is a continuing theme for WTF1 from what I've seen unfortunately
Where is the 2022 wallpaper you featured in the video (@ 0:26)??? Been looking and googling and posting questions as to its whereabouts to no avail😬
F1 should change some rules
like everyear they need to change 1/2 of the circuit in the calendar, so not any circuit can be in 2 or 3 times in a row
it will bring more fans from different country
Wow I didn’t realise that money from Miami and Las Vegas was going straight to F1 no wonder there’s gonna be 3
I don't even watch F1 but find these videos great as I'm into other sim racing.
This video has really answered my high curiosity of how much capital and effort does it really need to host an F1 race and also the background faces and challanges of each grand Prix tournaments so Keep it Up 👍👍👊👊
I guess visitors from overseas play a role in how much money can a F1 race make. For example, you mentioned South Korea and India, I would never visit these countries for F1 race. Not sure if F1 fans like to go to countries like Bahrain, Azerbaijan , Russia, Saudi Arabia. Would be interesting to see which GPs are profitable and loss making.
Miss Matt and his videos...
If F1 want to make it an experience for the fans, you'd say get rid of the Turbo Hybrid V6s and go for Turbo Hybrid V8s, but since F1 is more "Road relevant", we are stuck with vacuum cleaners. More like house relevant because everyone has a vacuum cleaner
So the city of Austin gets 1.2 billion a year from the race. Crazy.
Thank you for showing the Swiss Plane😅 made my Day. Greetings from the small Cheese Country 🇨🇭
No, it should not be cheaper. There are more races on the calendar this year than ever before. Obviously the economics work. If they stop working tracks will pull out or renegotiate. Supply and Demand doesn’t need my opinion of how much is too much or too little.
I’d love to have a race in Ireland, but it’d definitely need to be F1 paying for it with the state of our current government…
I certainly plan on going to the Vegas race
Can you make a video on the oil money races
Being from South Africa I can tell you that unfortunately the economy is not doing brilliantly and it will cost a lot to host the race, particularly because of the Rand in comparison to the Dollar. Hope this is not true though 😢
The 3 min mark is too good
Love the videos I have a question! Have u been to the Texas GP? If so where is the best place to sit? Thanks!
No taxes gp
@@zaidcasoo3071 I believe he means Austin, TX
Loved the zoomed in Jetsons wallet swipe.
Thx guy’s I love this videos 🥰
would be nice to see your sources for these numbers?
Can’t wait for the 1st Las Vegas race!
F1 has ever raced there twice in 1980's. Its like comeback race.
Second 0:58 Mexico’s stadium
Fun video 👍
Like how he says for Monaco a tiny fee of only 15million dollars 🤣😂
Yes
the high cost of building city courses is why I really doubt NASCAR would ever do the rumored street course
I thought I was the only NASCAR fan here 🤣
@@thatpaintschemeguy8 same
If they wanted to save costs they could combine it with another race (i.e. indycar), though that would limit options
Love the vids 👍
hello wtf1, with imola coming up i would highly appreciate if you could make a video explaining sprint race format. thanks
He has
F1 : The GREATEST racing spectacle on the planet.
Indian Government : Classifies it as "Entertainment".
F1 : Goodbye, have a great time !
don’t forget Sepang too
Monaco pays for hosting F1?? I heard that Monaco was paid by F1 rather than pay for hosting the race.
i wish Portimao was back on the calendar =(
I love it thx guy’s
GOOOO DANIEL RICCARDO
RIP Kayalami
i wonder if indonesia is hosting a f1 race in mandalika?
just done a cba on this a couple weeks ago haha
They should have a lottery location each season
Finally Someone mentioned India after soo long!
Matt should host a race in the Suffer-ring made by himself
So f1 is what the Olympics wishes it was a expensive but profitable show.