In 2011, the Belgian Grand Prix recorded a financial loss of 6 million euros. To address such a financial loss, the company managing the circuit had no other choice but to reduce its balance sheet to cover the losses generated by the 2011 Formula 1 Grand Prix. This capital reduction, from 9 to 3.2 million euros, was carried out last December by the main shareholder of the circuit, namely the Walloon region, which manages its holdings through Sogepa.<\/p>\n
The deficit of 2011 is, however, within the average of losses recorded in recent years, as it reached seven million euros in 2009. While this kind of deficit may seem indecent in these times of financial and economic crisis, it must be put in its overall context. Indeed, although the circuit operating company recorded a loss, this is not necessarily the case for the Walloon region, since the Grand Prix generates significant financial returns for the local economy (hospitality and catering).<\/p>\n
This is precisely what Jean-Claude Marcourt, the Walloon Minister of Economy and Foreign Trade, did not fail to remind: The event benefits the Belgian economy. Its impacts are estimated by Ciriec (Study Center of the University of Li\u00e8ge) for 2012 at approximately 43.415 million euros, including 14.63 million euros for the Hotels – Restaurants – Caf\u00e9s sector (both in the region and outside) and 7.61 million euros in various taxes (including 4.731 million in VAT). The Formula 1 Grand Prix in Francorchamps costs nothing to Belgium; on the contrary, it is very positive for its economy.<\/p>\n
Moreover, the losses remain significantly lower than what other circuits around the world may experience. For instance, South Korea had to face a debt of $36 million in 2012 compared to $60 million in 2011. The bill left to Melbourne taxpayers amounted to 56 million Australian dollars, while the state of Texas paid $29.3 million to the Circuit of the Americas for the return of F1 to American soil.<\/p>\n
Upon his appointment as head of the Spa-Francorchamps circuit, Fran\u00e7ois Corn\u00e9lis clearly showed the direction he intended to follow at the helm of the legendary Ardennes circuit: \u00ab Our mission is therefore quite simple: to increase revenues in line with the fact that it is the most beautiful circuit in the world, in order to generate the means to invest in the modernization of facilities and in welcoming the public. The primary resource is the rental of increasingly high-performance facilities for which we would receive higher rents. We also want to increase the number of rental days, even if winter, for example, is not dedicated to motor sports. The climate is not necessarily a handicap. There is a huge demand for driving on snow with an instructor. We also need facilities that make the site more attractive to the tenant. We must be able to organize shows during the 24 Hours of Spa or after a Belgian Championship event. \u00bb<\/p>\n
Belgian leaders will also be able to rely on their new three-season contract with the FOM. Indeed, for the next three seasons, the cost of the fee paid to Bernie Ecclestone has been reduced by 4.9 million euros, which represents a large part of the current deficit. Let’s hope they don’t try to cover the rest of the deficit with a new increase in ticket prices, already among the highest in the world…<\/p>\n