2023-08-11 05:43:16
August 11, 2023 Today at 2:45 AM
Wallonie Entreprendre has just injected 5.69 million euros into the company organizing the Belgian Grand Prix. The circuit benefits from a loan of 7 million.
It is now recurring. While the F1 Grand Prix (GP) at Spa has been confirmed for next year, Wallonia has just paid off the debts of the organizing company Spa Grand Prix ; 5,688,000 euros were thus contributed by Wallonie Entreprendre (ex-Sogepa) to the company Spa Grand Prix. This amount corresponds to the 2022 loss of the GP communicated by Minister Willy Borsus.
The Walloon Region had instructed Sogepa to “cover any losses noted in the accounts of Spa Grand Prix”. The operation, carried out via a capital increase, should make it possible to absorb the total loss of 5.67 million euros.
The organization of the F1 Grand Prix in itself is indeed not profitable. Sales and services for Spa Grand Prix in 2022 are 28.35 million euros, while costs amount to 33.48 million euros.
Spa must indeed pay the plate to the International Automobile Federation (FIA). A cost up by 5.2% compared to 2021 due to a $500,000 higher price and an unfavorable exchange rate.
Funding for a study on the effects
Costs increase by 2.7 million euros. New costs include those related to increased attendance, those related to ancillary events and entertainment, and the cost of a study commissioned from Deloitte on the economic impact of the Grand Prix.
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F1 at Spa generates 55 million euros in economic benefits
This study, commissioned by the organizers of the Grand Prix, ensures that for each euro invested, the benefits were around 9 euros. Spa Grand Prix revenue includes ticketing revenue (23.3 million euros), VIP revenue (3.81 million euros) and other revenue from re-invoiced costs and the food concession of 1.21 million euros.
The 2022 loss of Spa Grand Prix thus amounted to 5.13 million euros. It is however better than the 2021 edition, an edition strongly impacted by the covid, which ended in a loss of 6.81 million euros.
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Behind the Spa-Francorchamps GP flop, accounts in the red
It must also be said that the bulk of the space as well as the Paddock Club remain with F1 and its main sponsors (Emirates, Heineken, Rolex, Pirelli, DHL, etc.).
The circuit goes up the chicane
7
millions of euros
Just like Spa Grand Prix, the Spa circuit is also losing money, especially with the covid years. A loan from the Walloon Region of 7 million euros was converted into capital last January.
It is also regardingdistinguish the Spa Grand Prix company from that of the Circuit de Spa Francorchamps. The latter, which takes care of promoting the circuit throughout the year, has closed the year 2022 also in the red with a loss of 1.36 million euros following 2.87 million euros of losses in 2021.
Total losses carried forward from the Spa Francorchamps circuit are now 10.97 million euros.
The company explains in its 2022 accounts to return to a more normal pace of activity following two years marked by the covid. There too, the Region is at the rendezvous. Last January, thehe circuit converted a loan from the Walloon Region of 7 million euros into capital.
Résumé
Like every year, Wallonia is paying off the debts of the organizer of the F1 Grand Prix of Spa Francorchamps.
The circuit as a whole lost 1.36 million euros in 2022 and is struggling to recover from the covid slope.
Wallonia lent 7 million euros to the circuit, a loan converted into capital last January.
The benefits justify, according to a Deloitte study commissioned by the Grand Prix, the public money spent.
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