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Posted by nelson on August 10, 2017

The substantial economic implications of bringing a Formula One race back to Portugal have been stressed yet again after a researcher from the University of Minho revealed it would cost “over €800 million.”

Paulo Reis Mourão explains that countries must commit to long contracts “usually lasting 10, 12 or 15 years” to host a race.

Thus if Portugal were to host one for 12 years, it would pay an annual fee of €60 million to €70 million which would equate to a total of over €800 million.

He adds that the event would ‘only’ directly generate €200 million to €300 million, though the estimate does not include revenue from other sources such as advertising.

Mourão’s statement came in an interview with Lusa news agency after launching a new book entitled ‘The Economics of Motorsports: The Case of Formula One’.

He describes it as the “first book about F1 as seen through the eyes of an economist”.

His reality check comes just two months after Algarve racetrack boss Paulo Pinheiro said it will be “very hard” to bring a Formula 1 race back to Portugal (click here).

“Formula 1 is definitely the pinnacle of international motorsports, but it is very hard for a country of our size to gather all the conditions needed to host the event,” he told Lusa news agency in June.

Talking after the racetrack announced it was “officially ready to host a Formula 1 race”, Pinheiro stressed that although “Portugal is in fashion and everyone looks at the country with fondness”, “a series of factors need to be combined to bring F1 here, namely financial”.

The last time Portugal hosted a Formula One race event was in 1996 in Estoril.

michael.bruxo@algarveresident.com

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