The Grand Prix in Austin generates $190 million in media impact

When Bernie Ecclestone claims that F1 puts a city or country on the world map, he can rely on the media impact figures generated by a Grand Prix. For Austin, they reach over 190 million dollars.

The organizers of the Circuit of the Americas were quick to publish the figures compiled by one of the industry benchmarks, Formula Money. These figures show that the city of Austin benefited from nearly $200 million in media impact thanks to hosting its first F1 race.

The distribution of this amount leans heavily in favor of television, as this medium accounts for $166.7 million, while print and online publications have accumulated “only” $24.4 million. If the organizers are so inclined to share this kind of data, it’s because they are in the United States. In the land of Uncle Sam, taxpayer expenditures are often at the heart of political controversies, especially in these times of imposed austerity.

However, the Austin Grand Prix received a public subsidy of $29.3 million from the Texas state fund dedicated to major events. In order to be eligible for such funds, organizers are required to present an economic impact study on the city and its region within 18 months. The announcement on the financial benefits is therefore a significant first sign in this regard, as it shows that for every dollar of public subsidy, the city of Austin benefited from $6.5 in media returns.

The return on investment should be even more interesting because this study does not yet take into account the impact of increased tax revenues from VAT and other taxes related to catering and hospitality. For example, hotels in San Antonio alone reported nearly five million dollars in additional revenue compared to the previous year over the five days around the race.

Similarly, the Circuit of the Americas is keen to highlight that the event was also beneficial for the teams and their sponsors. The American event presented the best media exposure rate of the season for the different sponsors present in Formula 1. The sponsors of the teams represent two-thirds of the $150 million generated, while the sponsors present trackside were able to benefit from $50 million in advertising equivalent. Pirelli, which was the most displayed trackside, thus accumulated half of the trackside sponsors’ benefits, an impressive percentage of 16.5% of the total.

With the participation of www.Racingbusiness.fr