Economists are not convinced by the race calculations in Madrid

In just two years, Madrid will host the Spanish Grand Prix instead of the usual Barcelona. From 2026, the national stage of the World Championship will take place on a new city circuit, built around the IFEMA exhibition complex.

The authors of the project claim that it promises significant commercial benefits for the Spanish capital, but economist Santiago Niño Becerra doubts the reliability of the calculations presented. He came to these conclusions by comparing them with the real economic indicators of the Spanish Grand Prix, which takes place in Barcelona.

There, promoters pay 26 million euros a year for the right to organize a Formula 1 race, and the total economic impact this brings to Catalonia is estimated at around 250 million euros. Becerra does not understand on what basis the authors of the Madrid project expect it to bring twice as much to the capital region.

“As far as I understand, no one has asked the question, to which I have no answer, why Barcelona generates 250 million euros, while Madrid expects 450 million? – Becerra argues, and his words are quoted by the newspaper Marca. – Why such a huge difference?

Liberty Media must now decide whether it makes economic sense to bring another race to Spain, and if so, they will likely increase the price.”

Becerra means that Barcelona still hopes to retain the Grand Prix somehow, as there was a period when Spain hosted two stages of the World Championship, although the Valencia race was a financial failure.

“Then, after the first year, it became clear that the project was ineffective, and in the second year it became a complete disaster,” the economist recalled. “We will see what happens in Madrid in 2026.”

From 2008 to 2012, five European Grand Prix were organized at the Valencia city circuit.