Counting The Cost Of Formula One

When you finally take the step to attend a Formula One race. as a fan, it may not just the price of the ticket itself that you have to pay.  When arriving at the grand prix itself, there may be parking costs affiliated with the day, there are souvenirs and of course, the all necessary ear plugs.  Not all circuits give out courtesy ear plugs like the Grand Prix du Montreal and a good set can cost you some expense.

Over the last few weeks, Formula1.com has released the ticket availability to some of the races in 2011.  I've done a bit of research and discovered that if you are planning on attending your local grand prix. Don't buy the tickets directly from Formula One's Official website.

Case in point.  Grand Prix du Montreal, three day general admission single ticket on the F1's website is $247.50 CAD or £185.22 GBP.  Overall, it doesn't seem that bad.  Looking at Gilles Villeneuve Circuit's Official site  tickets are only a fraction of the price, $122.00 CAD or £77.07 GBP.  That is over £100 difference!

There are a circuits though, that are or nearly the same price, Spa and Silverstone.  It seems strange that locally, the circuits would be much cheaper than the F1's site but researching the issue I think that I may have discovered the reason. Most circuits take only revenue from ticket sales from their grand prix, though a few have special deals with Formula One Management that entitle them to a share of trackside advertising or corporate hospitality revenues as well. The circuits each have a set price and with each transfer of sale, the price will expand.  And the given circuit will not see any of the additional cost. 

With race hosting fees reaching as high as $50 million, the circuits have to be very careful to judge what the fans will pay for a ticket as they could quickly hit financial difficulty if the prices are too high. Take the Istanbul Grand Prix. Turkey actually has some of the lowest ticket prices on the calendar - $49 for a three-day general admission ticket, beaten only by $39 for an equivalent ticket in Malaysia. Turkey's problem is that there simply is little local interest in the sport, whatever the price.

How much does it cost to sponsor / host a grand prix do you ask? A typical grand prix title sponsor / host city pays around $6 million per race, though some sponsors pay extra to gain additional coverage.  All the races, except for Silverstone and Suzuka, are supported financially by local or national governments through funding of the races themselves or of the construction and maintenance of the circuits. 

The revenue from race hosting fees is believed to be the source of FOM's biggest profits since there are very few costs associated with it: the company simply grants the rights to races and receives money for doing so. And the estimated total amount that Formula One Management (FOM) received from the 19 Formula One circuits during the 2010 season was $561 million.

So when you attened the grand prix weekend, be aware, the extra charges that you pay are nothing compared to what the circuit and city have to.