Barcelona must find financial solutions beyond 2012

The crisis is affecting the Grand Prix one after the other. While the mayor of Melbourne has already announced that the deficit from organizing the Grand Prix could lead the city to do without it, politicians in Catalonia are concerned about their budget beyond 2012.

Indeed, cities around the world must face the budgetary realities of their countries in these times of crisis and austerity. This is especially true for Spain, which is part of the less prestigious club of countries known as PIGS (Portugal, Ireland, Greece, Spain) that have had to seek international assistance to honor their debts.

Thus, Artur Mas, the new president of the Generalitat of Catalonia, believes that beyond 2012, he cannot guarantee the financial future of the Barcelona circuit, despite a contract extending until 2016: « The continuation of the Formula 1 race on this circuit is guaranteed this year and probably next year as well. I hope it can be maintained in the future but it will depend on the evolution of the economic situation and the results achieved in the next two years. »

This statement therefore means that the two races held on Spanish soil are in jeopardy since Valencia has already declared that the cost of organizing the event is too high compared to its revenue. However, the popular success of these two races has remained strong since 2004, following the rise and then the victories of Fernando Alonso. Thousands of fans do not hesitate to attend the private tests held on the Catalan circuit during the winter break.

The time no longer seems to be for reckless spending to obtain Formula 1 at any cost. China has thus leveraged its power of attraction and negotiation to significantly reduce its contribution to the FOM for its new contract, which extends until 2017.

With the participation of RacingBusiness.fr