Organisers of F1’s Hungary Grand Prix have agreed a one-year extension, with the race set to be featured every year until 2027.
However, along with an extension PlanetF1 has reported that the deal also sees a reduction in hosting fees, possibly due to the financial impact caused by the global health pandemic which has led to behind-closed-door events.
Zsolt Gyulay, CEO of Hungaroring Sport stated: “We have been liaising with Liberty Media how to compensate the missing profit because the organisational cost is not lower in case of a closed event.
“We did our best during the discussions to get a good agreement both for the country and the sport even in these challenging times. We cannot say exact numbers, but the rights fee is a fragment of the one we pay in case of an open event.
“Furthermore, we have achieved an extension in our contract, so now it is valid until 2027 instead of 2026. The yearly increase of the rights fee also has been reduced, so we spared several billions of forints for the state.”
In addition to the Hungary Grand Prix, Italy’s Monza circuit and the Belgium GP have also received new deals in order to provide some security during the pandemic.
Formula 1 Managing Director for Motorsport Ross Brawn, who spoke to racefans.net, explained the deals: “We’re not in the business of financially supporting a promoter who’s in trouble, but we are in the business of having good partnerships for the long term.
“In some cases some circuits have extended their contract by a year because they’ve lost this year. That gives them that stability.
“We’ve been fairly realistic I think in the approach we’re taking. The main focus is ‘how can we make sure you’re here in the future’?”
F1 has begun to restart preparations with a new streamlined calendar which features two races at Silverstone, along with races in Hungary and Italy. However, while sponsorship contacts will be able to be fulfilled track organisers will incur losses of revenue due to no gate receipts as all races will be played behind-closed-doors.