Benito Pérez, a Doctor in Sports Economics, asserts that the 'zero cost' claimed by Ayuso and Almeida 'does not exist' and estimates that IFEMA's investment can be recovered in four or five years.
The Formula 1 Grand Prix has already taken place in Madrid, but the race for the figures is still ongoing. The organisation falls to IFEMA, which has mobilised 125 million euros to build the circuit, a sum that must be added to the fee paid to Liberty Media, the company that manages the rights to the competition.
The PwC report attributes an economic impact of 467 million euros to the event, with around 8,850 jobs associated and nearly 83 million euros in tax return. However, the Doctor in Sports Economics Benito Pérez warns in statements reported by Infobae that economic impact is not net profit, and maintains that the “zero cost” defended by the President of the Community of Madrid, Isabel Díaz Ayuso, and the Mayor of the capital, José Luis Martínez-Almeida, “does not exist”.
Pérez estimates that the investment can be amortised within four to five years, as long as the circuit performs well in terms of sports and audience. For the expert, the key is that the track appeals to the drivers and generates overtaking: if that happens, the Grand Prix can reach an audience of 80 million viewers.
If the track is liked, if the drivers come out and say: ‘This is amazing’, this Monumental curve with 24 degrees of banking is appealing. If there are overtakes, if the Grand Prix is experienced with passion, there will be 80 million viewers
The economist, co-author of a study on the impact of the Madrid Half Marathon, recalls the precedent of the Valencia circuit, the last to host a Grand Prix in Spain alongside Montmeló. If the event does not convince, he warns, it could end up like that: a shanty settlement waiting for an urban project to build housing.
IFEMA presented an initial forecast of more than 450 million euros annually in impact and 8,200 jobs linked. The most recent figure, from the PwC report, raises the impact to 467 million and jobs to 8,850. The fan who arrives in Madrid, sleeps in a hotel, eats in a restaurant, and buys a ticket generates direct spending, which is complemented by the indirect effect on the city's economy.
You may also like
