Formula 1 News: F1 signs 10 year agreement to race in Long Beach
In a major turn of events brought about by pressure from the Long Beach City Council, the Long Beach GP Association has signed a 10-year agreement with Formula 1 to host the pinnacle of motorsports on the city streets each April.
–by Mark Cipolloni–
A secret study undertaken by the City Council revealed that a F1 race would have a minimum of $0.75 billion annual impact on the city, many magnitudes higher than the current IndyCar race delivers.
To appease IndyCar fans, the weekend will still feature an IndyCar race. IndyCar will race on Saturday after F1 qualifying, and IMSA will no longer be part of the weekend.
To sellout the IndyCar race, Roger Penske will enter a 4th car for World Driving Champion Max Verstappen, and Chip Ganassi has agreed to enter an extra car for Lewis Hamilton.
The study, that AutoRacing1.com was shown, estimates that the race will cost $60 million per year to host, but will more than make up for that in ticket revenue:
- Grandstand Tickets: 100,000 grandstand tickets @ $500 each = $50 million
- Suites: 20 @$1million = $20 million
- Race Sponsorship: $10 million
- plus concessions, etc
- Total estimated revenue: $85 million for a net annual profit of $25 million
The city expects to reap a tax bonanza with 100,000 F1 fans who spend 10 times more money at a race event than any other fans.
The hotels are ecstatic, with demand so high they are already sold out for the next five years.
The Long Beach Marina is rubbing its hands with excitement as 50 F1 yachts have inquired about renting mooring slots along the track at upwards of $250,000 each for the weekend.
To support the race, starting in 2027, the circuit will be extended by 0.75-miles, permanent F1 garages will be built with suites on top and the high school football grade grandstands used for the IndyCar race will be replaced by professional grandstands 75 rows high with seat backs and with suites on top.
The race will become the fourth F1 event in the USA each year, joining COTA, Miami and Las Vegas.
Current Long Beach GP boss Jim Michaelian has agreed to run the event for the next 10 years and will get a $1 million annual bonus if he delivers the expected $25 million annual net profit…or more. Jim said, “I’m up for the challenge.”
Then he checked his calendar and realized what today was.