Formula 1

Monza Grand Prix: the record economic impact of the Formula 1 event

From 2017 to 2024, excluding the Covid years, the 57 million spent by Aci Regione Lombardia on the circuit has produced more than half a billion on the territory

by Marco Bellinazzo

30 August 2024

5' min read

Key points

Economic impact
Gp inducement
Renewal of agreement with Liberty Media

5' min read

The weekend opens for the Monza Formula 1 GP (from Radio24) . Qualifying and the race (scheduled for Sunday, 1 September) will take place in a facility that presents itself with the modernised track and the new subways designed to improve the flow and safety of spectators.

This is a first part of the interventions - carried out in 140 days of work and with investments totalling 21 million - put in place to successfully conclude the negotiations on the renewal of the agreement with Liberty Media. In order to host Formula 1 even after 2026, others will have to be carried out, in particular to increase the space for hospitality and the Paddock Club and to improve TV filming, with all the difficulties of implementing these changes in a structure located in an area subject to constraints.

The economic impact

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In order to increase the attractiveness of the Monza Gp and enable this quality leap, the Aci intends to team up with institutions and, above all, companies interested in developing the economic value generated each season by the motorsport event. A value for the territory and the Italian motorsport system (also in combination with the Emilia Romagna GP), which Aci has asked Censis to measure.

The research institute's analysis effort led to the elaboration of a study that was presented on 29 August 2024 by Giulio De Rita at the Monza circuit. Overall, the Gran Premio d'Italia in 2023 generated direct receipts of 143 million euros, with around 300,000 attendances at the circuit. The report, which is very detailed, shows that 29.7 million were collected for the purchase of tickets, 7.2 million for on-site catering costs and 9.2 million for merchandising (the proceeds of these two items accrue to the event organiser). The presence of a high number of spectators from abroad (which in 2024 will be 66%) also generated a turnover of 18 million for transport and 32 million for hotels (in addition to the spectators, more than three thousand people including technicians, mechanics, drivers and engineers spend almost a week in the province).

Also significant was the contribution to shopping, which produced a turnover of 6.3 million, to which must be added the revenue from the so-called 'big spenders', visitors who took advantage of their stay in Milan to make medium-high-end purchases for a total of 10.5 million. Another element that gives an idea of the economic impact of the Monza GP and its media relevance is related to the parties, about 80, that the many F1 sponsors organise, mainly in Milan, spending over 2.4 million.

The Gp Inducement

Beyond the direct spin-offs, there are those produced in the medium to long term and downstream of a global sporting and media event such as a Formula 1 GP is today. These spin-offs on the Italian industry, especially those linked to engines and mechanics, both in terms of increased business and the strengthened ability to attract investment, can be estimated at no less than 80 million per year, considering the system impact also due to the Imola GP (which in 2023 did not take place because of the flood and for which the Censis report estimates a direct economic impact on the territory of 85 million). The long-term benefits also concern the enhancement of the territorial brand. The race for the image of the Province and the Region is in fact worth 50 million.

Ecco Monza, il gran premio da record per impatto economico
Photogallery17 foto

Media coverage value

And finally, the value of media coverage should be considered, the so-called media coverage value. In this case, according to Censis, more than an intangible value one must speak of a 'potential' value, a great opportunity that it is right to evaluate by taking the two Italian GPs together. The more than 150 million live spectators in 200 countries, to which must be added at least as many deferred or who only watch the highlights produced by the more than 50 authorised broadcasters or the official F1 channel (which has 8 million subscribers), the 2,5 billion contacts on the web and, finally, the incalculable number of 'relaunches' made on social networks make up an enormous container in which it is possible to convey promotional messages linked to the mechanical industry, but also food, fashion, tourism, because F1 is now 'freed' from a motoring-only image and is increasingly, and always will be, a great show. This showcase represents a value, for those who know how to exploit it, of around 200 million euro.

Investments and economic return

"From these numbers," explained the President of the Automobile Club d'Italia, Angelo Sticchi Damiani - it is quite clear that, in the last seven years, i.e. from 2017-2024, since the 2017 Financial Law entrusted ACI with the organisation of the race, and excluding, of course, 2020 and 2021, due to the serious and unpredictable problems generated by Covid, thanks to the Go of Monza more than half a billion euro has remained in the territory, considering a prudential annual average of more than 100 million per year".

"Half a billion,' added Sticchi Damiani, 'which not only abundantly justifies the ACI's investment of 46 million in resources - which, as the Italian motorsport federation, could not miss the most important event on the calendar - but, above all, represents one of the most productive investments of public money by the Lombardy Region, since the 27 million invested by the latter have produced a multiplier of 20 times. If we consider, finally, the 57 million (27 public from the Region and 30 from ACI resources, after deducting losses from the annus horribilis 2021), the investments for the Monza GP have produced a multiplier of 10 times. What other investments yield as much?'.

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The renewal of the agreement with Liberty Media

In order to be able to renew the agreement, which expires in 2025, Liberty Media demands certainty that certain improvements will be made on the circuit, particularly in relation to the hospitality areas. ACI has the resources to finance them. Resources accumulated thanks to the income from the institutional activity rendered by its offices to motorists. The Services Conference that brings together the public bodies involved in the administration of the Monza Park must now proceed with its deliberations on the matter, in order to overcome the bureaucratic and legal obstacles to the modernisation of many parts of the area. When ACI took over from the Automobil Club Milano in the management of the Italian GP - due to the lack of alternatives, as Sticchi Daminani recalled - the fee demanded by the Circus owner was raised from 4 to 22 million. For the renewal, Liberty Media's request is around 30 million. A possible increase in the hospitality revenues governed by the latter could facilitate a 'discount' on the annual fee, guaranteeing a consequent saving for ACI.