The Madrid Grand Prix is at the centre of a vicious debate between local politicians over its future viability, with one party labelling it "a scam and not profitable".
F1 announced in January this year the Spanish city would host a race from 2026 through to 2035. RacingNews365 understands the hosting fee per year is $25million, amounting to a total outlay over the decade of $250million.
The race is to be held on a semi-permanent track around the Ifema Madrid exhibition centre, however, a main sponsor has still to be found, which is causing considerable consternation.
In a meeting of the Committee on Tourism and Sports this week, held at the Vallecas Chamber, the Deputy Minister of Culture, Tourism and Sports, Luis Martín, expressed faith in the Madrid F1 race.
"IFEMA Madrid, the promoter of this event, is doing its job and taking all the necessary steps so that Madrid can host this F1 grand prix and so that we can be a benchmark in the organisation of this type of celebration at an international level," said Martín, as quoted by AS.
He added: “This is one of the most important sporting events on a global level, and only the 23 cities that have the opportunity to celebrate such an award can enjoy it. It will undoubtedly have a positive impact on the citizens of the region."
It is anticipated the event will yield 4.5 billion euros in GDP (gross domestic product), yet Pablo Gómez Perpinyà, of Más Madrid, one of the city's main political parties, is sceptical, claiming it is "a scam and not profitable".
Perpinyà said: "If it turns out that the private sector decides not to invest in this operation, I say they will be the ones who know best where the money should not be put."
His comments followed those of Engracia Hidalgo, head of the Department of Economy, Innovation and Finance of the City Council, who recently stated that "no company had been found that initially wanted to transfer that risk" of the management contract on offer.
Referencing what happened to the grand prix in Valencia that disappeared after a few years, Hidalgo added: "If in 2026 we still have no sponsors or if it turns out to be like in the Valencian community, where the day comes when a sponsor leaves, the one who will be in charge of rescuing this huge marketing operation will again be the public sector."
Perpinyà fears that the pursuit of the GP project will ultimately prove to be "a finger to the taxpayers because they are told that their taxes are being lowered and on the other hand they are being hit with a Formula 1 tax".
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