Liberty Media Corp., which owns the Formula 1 racing business, is in advanced discussions with the principality of Monaco to secure additional funds for a new contract extending the historic car race beyond 2025.
Monaco currently pays around $20 million annually to host the event, the lowest amount among the 24-race calendar, and Liberty Media representatives are looking for an increase, as reported by sources familiar with the negotiations. The parties signed the current three-year deal in September 2022, with this year’s event beginning on May 24.
Similar to other major tourist attractions, the Monaco Grand Prix provides a significant economic boost to the region by filling hotel rooms with visitors of all budgets. Saudi Arabia and Bahrain, two other race hosts, reportedly pay over $50 million each year. These fees contribute to Formula 1’s revenue, which is used to distribute prize money at the end of each season.
A spokesperson for Formula 1 declined to comment on the ongoing discussions but confirmed that the company has no intention of pulling out of Monaco. The Automobile Club de Monaco, responsible for organizing the race, did not respond to requests for comment.
Under the leadership of Chief Executive Officer Greg Maffei, Liberty Media has increased Formula 1’s annual revenue by more than 50% since 2019, reaching $3.22 billion last year. The company has been focused on expanding Formula 1 to countries outside of Europe, where the sport originated. With three races now held in the US (Miami, Austin, and Las Vegas), there are rumors of another race coming to a different US city.
In 2022, New York City Mayor Eric Adams proposed Randall’s Island as a potential venue, but Formula 1 CEO Stefano Domenicali expressed doubts about its suitability due to accessibility issues for the anticipated 300,000-plus fans.
The Prime Minister of Thailand recently held discussions with F1 officials regarding a race in Bangkok.
The iconic Monaco Grand Prix, set in the sunlit streets of Monte Carlo, is considered a must-attend event in motorsports. Despite criticisms from Formula 1 fans and top racers like Max Verstappen, Fernando Alonso, and Lewis Hamilton regarding the track’s dullness, Monaco organizers have been reluctant to alter their business model, prioritizing the historical significance and prestige of their nearly 100-year-old circuit.
However, the principality has made changes in the past. Two years ago, Monaco relinquished its right to produce its own television coverage of the race as part of a new contract agreement.
“Monaco embodies the essence of F1,” said F1 analyst and consultant Vincenzo Landino, who publishes the Qualifier, a newsletter about the sport. “Removing that would create a brand crisis, in my opinion.”
