“In Madrid there is a lot of money.” The phrase, repeated in different versions by representatives of Liberty Media, owner of the F1 rights, summarizes the great deal to come, which remains shrouded in mystery.
Ifema, in which the Community of Madrid, the Madrid City Council, the Chamber of Commerce and Industry and the Obra Social and Monte Piedad Foundation of Madrid have a shareholding, know that launching the grand prize will cost them 100 million euros. To this we must add a multimillion-dollar fee to be paid to Liberty, which can skyrocket to between 200 and 600 million euros for ten years depending on what other organizers are paying right now. To this we must add, according to documentation accessed by this newspaper, personnel expenses, sales commissions, professional and outsourced services, infrastructure, insurance, promotion, repair, or electricity.
How can we compensate for these expenses if there is no investment of public money, as all the organizations involved have promised, in contrast to the Barcelona model? Through spectators, who will be able to pay to enjoy two areas of hospitality or vip; from payment for sponsorships; and to take advantage of the transformation of the multipurpose conference space to organize concerts coinciding with the racing weekend; and try to host other sporting events, such as, the promoters dream, MotoGP – difficult to imagine as it is an urban circuit, since greater loopholes and great security measures are required on the track to protect the motorcycle riders -, or the final stage of the Tour of Spain.
“Conceptualized and designed specifically to offer a differential and unique experience for both fans and teams participating in the competition, Madrid wants to deepen the development of a new paradigm that combines sport and spectacle, offering a memorable event,” he explained in January. José Vicente de los Mozos, president of the Executive Committee of Ifema. “We have the ambition to organize a Grand Prix that will become a reference on the international F1 calendar.”
Thus, the business plan for the capital’s grand prix details the expectation that it will start with 112,000 spectators (92,000 in the stands, 15,000 in the VIP, and 5,000 in the paddock club, the most elite area), to skyrocket to 140,500 from fifth year, when everything is already rolled out and there is another five years of concession left to squeeze benefits from the arrival of high speed to Madrid. The average expense per person on food and drink is estimated at 100 euros for the entire weekend. And although in principle a lawn (area without seats and cheaper), a source familiar with the project estimates that an attempt will finally be made to include it, with prices of between 50 and 70 euros, reduced visibility and screens to follow the grand prize. A wink to fill the race weekend with color, noise and passion, as well as to try to bargain the image that this will be an elitist event, inspired by the VIPs of the 1,000 tennis masters in the capital.
Thus, the prices per ticket proposed by Madrid place this grand prix as more expensive for spectators than those in Barcelona or Monza (Italy), but cheaper than those in Zandvoort (Netherlands: 522 euros on average) or Silverstone (United Kingdom). United, 522); and of course those of Miami (USA) or Mexico (both with 1,099).
And who will come to Madrid? The organizers expect that 70% of spectators will arrive from outside the capital and that 35% will do so from outside Spain, contributing 450 million euros to the regional GDP by spending an average of almost four nights in the city, with a average expenditure of more than 1,300 euros. Everything to enjoy the great Formula 1 circus.
