There are more and more Formula 1 fans in the country and the Mexican Grand Prix is already with the engines more than on. Its organization entails a series of logistical and commercial maneuvers that impact the entire Mexico City, causing a great economic spill. But who finances this event? Does the government invest in it? What are the companies in charge of the Mexican Grand Prix? Here the answers.
Who finances Formula 1 in Mexico?
Until before the arrival of Claudia Sheinbaum as head of the Government of Mexico City, the local administration allocated up to 800 million pesos to finance the organization of the Formula 1 Grand Prix of Mexico.
However, since 2019, a new agreement was reached so that the most popular event of the World Motor Racing Championship would take place without the government having to spend on it.
Since then, the organization has been run by private initiative. It is important to note that Formula 1 is part of the Liberty Media Corporation, an American corporation that achieved revenue of 2,136 million dollars in 2021 through this business, according to its annual report last year.
In Mexico, the Inter-American Entertainment Corporation is in charge of promoting and marketing the Mexican Grand Prix and is, therefore, one of the main companies that finance and invest in this show.
When in 2015, CIE reached a deal to bring Mexico back to Formula 1, after a 23-year absence, it decided to bet 360 million dollars for the next five years, with the projection of tripling the investment at the end of the ‘race ‘.
The commercial alliances are very diverse, Heineken, for example, is one of the global sponsors, along with other brands such as D HL, Aramco, Crypto.com, Emirates, Rolex, among other officers such as AWS, Ferrarin Trento 1902, Liqui Moly and Zoom.
Sponsors of the Mexican Grand Prix
Mexico City Government, Heineken, Citibanamex, GNP, Banorte, Telcel/Infinitum, TopoChico, Tane, Kavak, Pencil.
Does the Mexican GP have public resources?
No, as the head of government, Claudia Sheinbaum, said, the government no longer allocates public resources for the organization of the Mexican Grand Prix. In 2019, the Tourism funds that went to the Formula 1 event were redirected towards the construction of the Mayan Train.
To do this, a Private Funds Trust was established that would serve to organize the event, year after year, until 2022. However, due to the fact that the pandemic prevented the Mexican GP from being held in 2020, this contract was revised until 2023.
Is it a good business for Mexico?
The Mexican Grand Prix is the one that had the most attendance during 2021, of all the races of the World Automobile Championship, with 371,799 spectators.
And the economic spill calculated for Mexico City, in 2021, was 14,375 million pesos. In large part, the spending made by fans is directed to lodging around the Hermanos Rodríguez Autodrome, with an occupation of between 67 and 92% in the days prior to the event.
Despegar, a company specializing in travel and accommodation in Latin America, carried out an analysis in which it found that the demand for accommodation in Mexico City has increased 50% for this F1 weekend, compared to a regular weekend.
In addition, it is estimated that the Mexican Grand Prix generates more than 8,000 temporary jobs.