Melbourne’s losses still stand at 40 million euros

For Melbourne, the Formula 1 Grand Prix is the main event of the year since it attracts nearly 273,000 people over the weekend.

Nevertheless, while the race does a lot for the international visibility of the city, the level of losses reported by the Australian Grand Prix Corporation has stabilized around 60 million Australian dollars, or approximately 41 million euros.

These losses have nevertheless been reached with a slightly lower level of income and expenses compared to the previous year, as the revenue generated by the circuit only reached 18.7 million euros compared to 20.7 million the previous year, a decrease of 10% year-on-year. Since the revenues followed the same path, the losses have been stabilized. This level has been seen since 2012 when the losses were 56 million Australian dollars.

The local authorities believe that this investment is offset by the expenses incurred by these tens of thousands of spectators when they are in town. The organizers’ accounts also clearly quantify the appeal of a Formula 1 Grand Prix compared to a Moto GP race since the State of Victoria also hosts a leg of the motorcycle calendar.

The revenues generated by the event only reach 5.5 million euros, while expenses amount to 12.5 million euros, resulting in a deficit of eight million euros for an event that attracts three times fewer spectators (84,000) than F1.

For a city of four million inhabitants, these events contribute to the city’s attractiveness in a broad sense. This is why it was decided to extend the contract with F1 until 2023, while the Moto GP contract runs until 2026.

With the participation of www.racingbusiness.fr