Page 23 - OCEAN BLUE - SPRING 2015

+++MONEY ++ MONEY ++ MONEY+++
The races in Mexico and the US will
generate over $1 billion in revenue
for F1’s parent company, Delta Topco
over the lifetime of their contracts.
The US Grand Prix has a ten-year
term with a hosting fee, which started
at an estimated $25 million with a
ten per cent escalator. The contract
will generate revenue from the fee
alone of about $398.6 million. Delta
Topco also collects revenue from the
Paddock Club, the hospitality areas at
the Grand Prix races where the annual
revenue averages $4.1 million for each
of the nineteen F1 races. Trackside
advertisers including Rolex and the
investment bank UBS, along with four
other sponsors paid $7.5 million for
this distinct advertising privilege.
The Rodriguez Brothers track is located 350,000 fans will attend throughout
within the Magdalena Mixhuca Sports
City, a public sports complex. It is a
unique racetrack situation in that it
has a baseball stadium inside Turn
14 at the ‘Peraltada’. Tavo Hellman
suggests the combined cost of this
endeavor, to be footed privately and
by the Peña Nieto government, is
about $200 million US, with the track
costing less than half of that.
Located northeast of Mexico City, the
racetrack and its outbuildings, pits
and infamous Paddock area are all set
for renovation and to be brought up
to FIA standards. The renovations are
now in progress and are extensive. The
bumpy circuit track will be completely
resurfaced. The dangerously fast
Dieter Esch
Chairman
final corner, The “Peraltada” is being
modified as part of the rehabilitation
of the racetrack. However Tavo
Hellmund assures that the circuit will
still be quick.
The German firm of Tilke Engineering
and Architecture, F1 racetrack
professionals, will execute the project.
The entirely newly constructed
Paddock will be able to host 5000
spectators. The 33-pit building will be
renovated and in addition, a control
tower, a press center, and medical
center will be built. The ‘esses’ will be
softened and other safety measures
will be taken. Upon completion
there will be room for 120,000-seated
spectators and 30,000 standing in
general admission. It is predicted that
the F1 weekend.
The F1 Grand Prix races have once
again captured the adoration of
fans worldwide. 2014 was the year
of Mercedes, where it dominated,
winning 16 of the 19 races, with 11
‘one-two’ or first and second finishes
and setting high standards for 2015.
Germany’s Nico Rosberg and Sebastian
Vettel completed the 2014 circuit
on a high. The addition of Mexico
City’s racetrack, Austin’s US Grand
Prix and Dubai’s Yas Marina Circuit,
with their grandstands, modern pit
buildings and speed, sass, and political
and geographical challenges add up to
big entertainment business and great
times.
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