About a month ago, the Australian Grand Prix got a new contract extension through 2020.
Problem is, they have a mountain of financial losses to dig out of after this year’s edition.
Last week, Australian government officials confirmed in reports to Reuters and The Guardian a loss of nearly A$60 million this year ($55 million U.S.), a record. Last year, the number was less, at A$50.7 million.
Revenue was down and expenditure up, per the reports.
These losses are not new – for several years, the race has operated with losses in the A$50m ballpark.
A statement from Victoria’s Major Events minister Louise Asher, however, said the race does produce a viable and positive economic impact. In a statement, her office said: “The Formula 1 Australian Grand Prix alone generates between 351 and 411 full-time equivalent jobs and up to $39m in economic benefits as well as up to $35m in media or advertising-equivalent.”
Next year’s Australian Grand Prix will be the 20th held at Melbourne, dating to its first in 1996.