How Much Does Monaco Pay To Host F1?

How much does Monaco pay to host F1? Monaco pays $20 million USD per year to host the Formula 1 Grand Prix, which is less than most other races because of its historic status and being a “jewel in the crown” of the sport.

As one of the most iconic Formula 1 events, the Monaco Grand Prix brings global attention to the principality’s iconic casinos and hotels, but its hosting fee is nowhere near what newer circuits like Las Vegas or Saudi Arabia pay, which are upwards of $50 million…

Why Monaco Pays Less Than Other Circuits

Monaco’s $20 million fee is the lowest on the F1 calendar, a stark contrast to races like Azerbaijan ($57 million), Saudi Arabia ($55 million), or Las Vegas ($50–55 million). Several factors explain this favorable arrangement:

• Historic Prestige: Since joining the F1 calendar in 1950, the Monaco Grand Prix has been a cornerstone of the sport, often called the “jewel in the crown.” Its iconic street circuit through Monte Carlo, lined with yachts and luxury hotels, adds unparalleled glamour, making it indispensable to F1’s brand.
• Special Contract Terms: Former F1 boss Bernie Ecclestone historically under-charged Monaco, recognizing its value to the championship. This legacy has carried into Liberty Media’s era, with Monaco securing favorable terms.
• Long-Standing Presence: Unlike newer races that pay premium fees to join the calendar, Monaco’s 70-year history grants it leverage, allowing it to negotiate lower costs, making Monaco’s fee far below the $35–55 million paid by Miami, Las Vegas, or Saudi Arabia.

Operational Costs Beyond the Hosting Fee

While the $20 million hosting fee is the primary cost, Monaco incurs additional expenses to stage the Grand Prix:

• Race Operations: The event requires temporary grandstands, security, and street closures, given its street circuit nature. These costs are significant but lower than those for newer street circuits like Miami or Las Vegas, which spend over $100 million on temporary infrastructure.
• Minimal Track Modifications: Unlike other street circuits, Monaco’s circuit is semi-permanent, requiring only minor yearly adjustments, saving millions in construction costs. The Automobile Club de Monaco (ACM), backed by the royal family, streamlines operations, reducing logistical hurdles.
• Government Support: The principality’s government and ACM heavily subsidize the event, leveraging Monaco’s wealth as a tax haven to manage costs without relying on extensive public funding, unlike circuits such as the British GP, which is privately funded.

Economic Benefits of Hosting the Monaco Grand Prix

The Monaco Grand Prix generates massive economic and reputational returns, far outweighing its costs:

• Tourism Surge: The race attracts over 120,000 visitors across the four-day weekend, pushing hotel occupancy to 95–100%. Room rates skyrocket, with a €1,000/night room costing €5,000 or more. Restaurants, exclusive clubs such as Twixt and Jimmy’z, and casinos see record revenues.
• Sponsorship and Hospitality: High-net-worth individuals and corporate sponsors flock to VIP experiences, including yacht parties and exclusive suites, generating significant income.
• Media Exposure: With F1 races reaching approximately 70 million viewers globally, Monaco gains billions in branding value, reinforcing its image as a luxury destination.
• Indirect Benefits: The Grand Prix bolsters Monaco’s real estate market, the world’s priciest, and creates thousands of temporary jobs in hospitality, security, and event staffing. An estimated €80–150 million ($90–170 million USD) in annual economic impact dwarfs the $20 million hosting fee.

Recent Changes and Liberty Media’s Push for Higher Fees

Liberty Media, F1’s owner since 2017, has been pushing for higher hosting fees to reflect the sport’s growing commercial value. Monaco renegotiated its contract in 2022, likely increasing its fee from the lower end of the $15–18 million range to the $20 million now reported, though still below newer circuits.

The current deal runs through 2025, but discussions for renewal are underway. Liberty Media’s scrutiny of low-paying circuits, including Monaco, is fueled by comparisons to high-fee races like Saudi Arabia ($55 million) and Qatar ($55 million).

Despite this, Monaco’s iconic status may preserve its favorable terms, though a modest fee hike is possible post-2025.

Future Outlook for Monaco’s F1 Hosting

Looking ahead, Monaco’s $20 million fee may rise as Liberty Media negotiates a new contract post-2025. The principality’s ability to maintain a low fee hinges on its unmatched prestige and economic contributions to F1’s brand.

However, with new races like Las Vegas and Miami commanding high fees and delivering modern facilities, Monaco faces pressure to modernize its infrastructure, such as paddock areas, to meet F1’s evolving standards.

While a fee increase is likely, it’s expected to remain below the $35–55 million paid by newer circuits. The 2026 calendar, shifting races like Canada to May, may also influence Monaco’s scheduling and costs, but its place on the calendar is secure through 2031, per current agreements.

As Liberty Media pushes for higher fees post-2025, Monaco’s iconic status will likely preserve its edge, though a modest increase looms. For F1 fans, the Monaco Grand Prix remains a dazzling showcase of speed and luxury—worth every euro…

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2025 Formula 1 Host City Hosting Fees

The 2025 F1 calendar features 24 Grand Prix events across 21 countries. Below are the estimated annual hosting fees paid to Liberty Media for 2025, rounded to the nearest million USD.