08.29.2024
Fondazione Censis presents the study “The value of a Formula 1 Grand Prix”
142 million: this is the economic value of the 2023 Monza Grand Prix; no less than 85 million, that of the Imola GP. These are the estimates contained in “The value of a Formula 1 Grand Prix”, the study by the Censis Foundation, presented at the Autodromo Nazionale Monza by Giulio De Rita.
Monza’s related activities – approximately 10 million higher than expected, probably due to the good number of big spenders, who took advantage of their stay in Milan to go shopping (1,500 euros, on average) – is achieved thanks to: the purchase of tickets (the proceeds of which go back to the territory for organization costs), merchandising, transport, accommodation and catering.
We must not forget the parties – around 80 – that the many F1 sponsors organise, mainly in Milan, in the week preceding the GP: events with a non-negligible economic impact on the area. Without neglecting the open events organized in the squares and streets, especially of Monza.
300 thousand – mostly foreign – the overall attendance at the Autodromo Nazionale Monza, in the three days of the GP, which provided a decisive contribution to reaching the record figure of 800 thousand attendances, in Lombardy, in the month of September 2023.
A Grand Prix, however, is also a huge technical challenge, which – including technicians, mechanics, drivers and engineers – involves no less than 3 thousand challengers: 3 thousand people who spend a week in the province, significantly contributing to the budgets of the local economy.
Direct revenues from the Monza GP (a.v.)
|
|
Number |
Average unit value |
Amount |
|
Public |
120,000 |
247.5 |
29,700,000 |
|
GP on-site charges |
120,000 |
60 |
7,200,000 |
|
Merchandising |
120,000 |
77 |
9,240,000 |
|
Shipping costs |
120,000 |
151 |
18,120,000 |
|
Average hotel spend |
72,000 |
450 |
32,400,000 |
|
Average spending other |
120,000 |
135 |
16,200,000 |
|
Teams, professionals, journalists |
3,500 |
3,000 |
10,500,000 |
|
Big Spender |
7,000 |
1,500 |
10,500,000 |
|
Average shopping |
9,000 |
700 |
6,300,000 |
|
Events organized by sponsors |
80 |
30,000 |
2,400,000 |
|
Total |
– |
– |
142,560,000 |
Source: Censis processing of Liberty Media data, 2023
IMPACT ON THE ITALIAN PRODUCTION SYSTEM: 80 MLN
To the repercussions linked to the event itself and the week in which it takes place, we must add the 80 million euros per year of long-term repercussions on the Italian industry, in particular that linked to engines and mechanics. Since it is an “annual” benefit, it is right to combine the two events and talk about the benefits of F1 on the Italian production system, both in terms of increased business and the strengthened ability to attract investments, also in relation to the fact that many customers and investors come invited to follow the GP in the Paddock or in the many “VIP areas” of the two circuits.
TERRITORIAL BRAND: 86 MLN (MONZA: 50, IMOLA: 36)
The long-term benefits – more intangible, but far from negligible – also concern the enhancement of the brand of the City and the Region. For the image of the Province and Region, the Monza Grand Prix is worth 50 million, that of Imola, 36. A difference due to the fact that Monza has a much longer history of Formula1 and the races that are repeated annually in the same location they have evocative implications that are very different from one-off events (such as, for example, a Champions League final), as they link a ten-year history to a location.
MEDIA VALUE: 200 MILLION
To all this, we must add the 200 million euros of the “potential” value of the media coverage (media coverage value) of the two GPs. The over 150 million live viewers in 200 countries, to which must be added at least as many deferred viewers or who watch only the highlights produced by the over 50 authorized broadcasters or by the official F1 channel (which has 8 million subscribers), the 2.5 billions of contacts on the internet and, finally, the incalculable number of “relaunches” made on social media, make up an enormous media showcase, a container in which it is possible to convey promotional messages linked to the mechanical industry, the food industry, fashion and to tourism, in an F1 – now “freed” from an exclusively motorsport image – which is and will increasingly be a great show.
THE COSTS
However, a Grand Prix also involves costs. In particular, those related to the organization. Costs which, among other things, are increasing. In order for the GP to be in balance, it is therefore necessary to increase revenues, which will only be possible by expanding the offer – entertainment, communication, territorial, industrial and commercial promotion – using the many potentials of the GP which are not yet fully expressed. To do this, the collaboration and participation of public and private institutions, administrations and bodies is needed.
STICCHI DAMIANI: “INVESTMENTS HAVE RETURNED 10 TIMES”
“From these numbers – commented the President of the Automobile Club of Italy, Angelo Sticchi Damiani – it appears completely clear that, in the last seven years (2017-2024, obviously excluding 2020 and 2021, due to the serious and unpredictable problems generated from Covid) – thanks to the Monza GP – remained in the area, considering a prudential annual average of over 100 million per year, more than half a billion euros”.
“Half a billion – added Sticchi Damiani – which not only abundantly justifies the investment of 46 million of ACI resources – which, as the Italian Federation of motor sport, certainly could not lose the event, ever, more important part of the calendar and which was called upon for this investment by the 2017 Finance Law – but, above all, they represent one of the most productive investments of public money in the Lombardy Region, since the 27 million invested by the Region have produced a multiplier of 20 times ”.
“Finally, if we consider – concluded the ACI President – the 57 million (27 public of the Region and 30 of ACI resources, purified from the annus horribilis 2021), the investments for the Monza GP produced a multiplier equal to 10 times. What other investments yield as much?”