Investor Shortfall Hits Madrid GP & Economic Gains Expected Later
Sep.25 - The new-in-2026 Formula 1 race on the streets of Madrid has failed so far to attract private investors.
According to Soy Motor, officials at the Madrid council admitted this week that the city's events organisation, Ifema, will therefore make losses relating to the race's planning both this year and in 2025.
"It has been confirmed that there are no qualified partners capable of meeting the strict requirements," said Engracia Hidalgo, the council's economy, innovation and finance head.
Early this year, Formula 1 announced a long-term contract with Ifema, endangering the future of the current Spanish GP host Barcelona post-2026.
"Once Ifema had obtained the rights and the different management formulas had been analysed and assessed, it is true that we signed the management contract, and basically due to the number of additional clauses we put in, we have not found the company that initially wanted to transfer that risk," Hidalgo added.
She insists, however, that the Madrid GP will ultimately have "a significant economic impact" on the city and be profitable - but not immediately.
"The expected benefits of Ifema's current activity in 2024 and 2025 will offset the negative results of Formula 1 in those two years and then the remaining years will be profitable for Ifema," Hidalgo added.
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Zero threat for this future GP debut, though.
So the private sector (who are infinately smarter than any government or bank) looked at the contract, which financially obviously made them liable for any losses and says No thank you, this is a case where the Government think its as good idea , but are only willing to back the idea with 30% of the peoples money and expect the private sector to fund the rest and take a loss, or a profit , gotta be balanced, i can see why the private sector arent falling over themselves to fund this hmmm..