Monza Grand Prix: An Economic Impact of Nearly €180 Million

“`html

Monza Grand Prix Weekend Awaits

The weekend of the Monza Grand Prix is in full swing as teams and drivers embark on the quest for the optimal setup ahead of the race.
Speed, excellence, and performance are crucial elements that will ultimately determine the victor.
The same principles can be largely applied to the situation unfolding off the track as well.
Monza stands as one of the most historic and beloved circuits on the Formula 1 calendar.
However, discussions concerning the renewal of the agreement between the famous Italian racetrack and the FIA have come to the forefront in recent months.

The involvement of Stefano Domenicali could pose an advantage, but Monza cannot afford to negotiate merely on its historical significance and prestige.
There is a pressing need to meet the excellence criteria established by the Federation.
Furthermore, it’s essential to recognize that potential investments required could yield unexpected and remarkable returns over time.

Impact of the Monza GP on Local Economy

The Office of Studies at Confcommercio Milano, Lodi Monza, and Brianza has outlined impressive figures from the Gran Premio di Monza in a metaphorical starting grid, mirroring the lineup from which the cars will launch.
This substantial economic impact cannot be overlooked and should be nurtured through bold and visionary initiatives.
The Formula 1 spectacle contributes nearly €179 million to the regions of Milan and Monza Brianza alone.
With about 300,000 spectators anticipated for the weekend, these attendees will also generate further revenue.

Accommodation expenses are estimated at €59 million, while shopping and merchandising will pull in €53.6 million.
Food vendors can expect approximately €28.6 million in sales, alongside entry ticket revenues adding up to €26.8 million.
Transportation and parking are projected to contribute around €10.6 million.
Notably, other Lombard provinces will also benefit significantly: around 11% of the tourist spending, equating to €19.4 million, will flow into the province of Como, with an additional 7% dispersed among Lecco and other areas.

The Race for Renewal with F1

While there’s racing happening on the track, there’s also a crucial contest for renewal taking place off it, directly linked to the action between the straights, curves, and overtakes.
The contract with Formula 1 is set to expire in 2025, and a renewal is essential to keep such a high-profile event in Italy, which, as indicated, generates substantial financial numbers.

In preceding months, significant efforts have been initiated to refresh and enhance the circuit and its facilities.
Reports have detailed that the financial demands from Formula 1 are hefty, but consistent with fees seen globally.
Currently, Monza pays about €20 million annually, but any renewal will see a rise to €150 million for a five-year agreement, potentially doubling to remain on the calendar until 2035.

ACI Italia’s President Sticchi Damiani has expressed the need for new works that would allow Formula 1 to increase its hospitality revenues, enabling them to negotiate better terms on the fee owed.
However, there is an urgent requirement for financial support from the government.
Recent estimates reveal that the costs delineated in the 2019 business plan have risen by 40%, amounting to an additional €30 million.
Additionally, local authority approvals are necessary for the proposed undertakings.

Political will appears to be aligned, both at the government level and among local officials, with several significant renovations already ongoing in anticipation of the 2024 event.

Stefano Domenicali, CEO of Formula One Group, recently remarked, “We are optimistic about finalizing the extension as soon as possible.
We need to think ahead.
There is a strategic intent to keep F1 in Monza, but this alone is not sufficient to secure a spot on the calendar.
It’s imperative to maintain momentum and complete the necessary improvements in a timely manner.”

“`