Formula One’s new urban economies

The Formula One (F1) industry has become a true microcosm of the world economy, as new business opportunities surface in emerging countries. Until the beginning of the twenty-first century, this sport was mostly relevant to traditional western urban elites, but since then, the F1 calendar has been largely altered to the benefit of ‘dominant-emerging cities’ and to the detriment of more traditional destinations. This article focuses on this urban question through a historical analysis of the F1 circuit’s expansion phases as well as through a study of the current Grand Prix’s estimate sanction fee.

► The Formula One (F1) industry has become a true microcosm of the world economy, as new business opportunities surface in emerging countries.
► There was a complete revision of the F1 calendar and ‘dominant-emerging cities’ are now clearly on the rise, competing strongly with more traditional destinations.
► An exponential increase of the F1 organisational costs, which almost quadrupled since 2000, is symptomatic of an F1 revolution.
► These new destinations redefine the underlying hierarchies of upcoming races.