F1: Azerbaijan signs new F1 contract through 2026 (2nd Update)

–by Mark Cipolloni–

One note about the press release below.  Although it states a new 3-year agreement was signed for the Azerbaijan GP in fact, the existing contract did not expire until after the 2024 race.

Hence, it is really a 2-year extension, and we suspect it was announced as a new 3-year deal because the country, floating in oil money, has agreed to an even higher Hosting Fee than the $55 listed below for the previous contract.

Is it possible they have agreed to pay even more, despite attendance figures that are among the lowest on the F1 calendar?

F1 has helped to put Azerbaijan on the map with its 70 million global TV viewers per race.

We had heard of Baku before F1 first went there in 2016, but did we really know where it was? More importantly, perhaps, did we care?

It is quite a nice place and the locals are very friendly.

Formula 1 has announced that the Azerbaijan Grand Prix will remain on the calendar through the 2026 season, with a new three-year agreement being signed.

“The Baku City Circuit has become a hugely popular venue for Formula 1,” said Stefano Domenicali, President and CEO of Formula 1. “It is an incredible circuit which always delivers huge drama, and has played host to some of the most exciting races in recent memory.

“We are delighted to extend our relationship with the country of Azerbaijan and look forward to continuing our growth together.”

Farid Gayibov, Minister of Youth and Sports of Azerbaijan, added: “We are thrilled to confirm our continued partnership with Formula 1. Ever since we first hosted this event in 2016, the economic, social, and cultural impact of the sport on our city and country has been remarkable.

“The FORMULA 1 AZERBAIJAN GRAND PRIX is a source of great pride for the whole country and will now continue to inspire and excite our fans for a further three years. The past six races have been some of the best and most dramatic in the sport’s long history and we look forward to creating more magical moments for F1 fans at home and abroad over the next three years – starting with this weekend.

“Moreover, today’s agreement has come during a weekend that sees us hosting a record number of fans from over 100 countries, which only serves to make this moment even more special.”

We have updated our table below accordingly.

–by Mark Cipolloni–

The circuit with the lowest race attendance, but rich in oil money, looks set to sign a renewal with F1 for at least another 5-years after its current contract expires after the 2024 race.

They currently pay one of the highest hosting fees at $55 million per year. It is expected the renewal will be for around $60 million per year.

“I can’t really disclose the details of the negotiations – however, it’s no secret that we are really looking forward to it being signed. It’s going in a positive direction,” said Baku City Circuit head of communications Turab Teymurov.

“We would love [to continue] because we understand the benefits coming from hosting the race. For instance, PricewaterhouseCoopers, they prepared a report – and according to that report, the benefits coming to Azerbaijan from hosting the first four races was more than $500 million.

“But it’s not just that. There are also social benefits – a volunteering program, youth programs, corporate; social responsibility-wise, it’s very, very profitable. It brings a lot of value.

“It doesn’t matter for us whether it’s three, six, or 10 [years], this year is very important. And if it’s long term, we would like to be established, so the longer the better.”

“Whether it’s in June or April, we don’t take it as a challenge because it’s not challenging for us anymore.

“We have a very strong team, and despite the fact that it’s hosted in the city center, they have the right expertise and the right knowledge to be able to host such a big event – so it doesn’t matter when.

“And in April, to be honest, it’s windier in April – and I think wind adds more drama to the race.

“The sprint race has its own status with its new format, so let’s see. It’s going to prove whether it’s as interesting, but if that proves to be effective, yeah, why not [continue]?”

F1 Event Statistics