It is a known fact that Formula One is a multi-milliondollar business. However, do you know how much it costs to host a single Formula One race?

Formula One is one of the most expensive sports/motorsports on earth. From highly-paid racers to costly cars and the creation of super-fast circuits, it is always raining money in the world of Formula One. Therefore, in this article, we have listed the expenses of hosting a single F1 race.

What is the relevance of this article?

Given how expensive F1 races are, people often ask why such a huge amount of wealth is spent on hosting the competition every year. In this article, we have not only listed the expenses to host a single race, but we have also answered the questions asked by people regarding F1’s spending.

Cost of a circuit

To host a race, a country must possess an F1 racing circuit. The most expensive F1 racing circuit on the planet is the Yas Marina Circuit, which is worth one billion dollars.

Not to forget, there are other essentials required to host an F1 race. For example, from ambulances to fire extinguishers and cranes, these important elements must be present on an F1 track.

That is not all because an F1 circuit must feature office buildings, paddocks, broadcasting centres and the list is endless. On all these amenities, millions of dollars are spent.

Hosting fee

Apart from having an exquisite F1 circuit with all the amenities, a country and its F1 circuit have to pay a huge amount to the F1 organisers. For example, the Sakhir circuit of Bahrain pays a whopping 45 million dollars to F1 so that their circuit is added to the F1 calendar year.

A contract is made which stays valid for two years or three years depending on the paid amount. However, every year, the fee is raised by around five per cent or 10 per cent. Usually, new and recently made tracks are charged with more money, so there is a continuous fight among the newly made tracks.

What is the point of hosting the race?

As we all know, F1 is a widely followed sport because of which, millions of fans, including celebrities and VIPs, travel to the host city/country. A single F1 race not only boosts the economy of the region but also the economy of the country because visitors pay a huge amount of money for tickets, food, accommodation, entertainment, tourism, F1 merchandise and more.

In short, F1 generates massive revenue for the host country. Last but not the least, the theory is simple; invest a huge amount, earn back even more.