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The return of the Mexican Grand Prix

Nico Rosberg at Red Bull ring (FIN/ Williams F1). Photo: GEPA pictures/ Daniel Goetzhaber
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12th August, 2014
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The Mexican Grand Prix looks set to make a return to the Formula 1 calendar in 2015, with the Autodromo Hermanos Rodriguez to be upgraded before the race at the end of next year.

This begs the question, after a 23 year absence from the calendar, why has Bernie Ecclestone decided to take the Formula 1 circus back to Mexico City?

The first reason, and far more likely, is the money that is at stake for both Formula 1, and the Mexican government. Upon the announcement of the deal, Ecclestone was quoted by the BBC as saying the arrangement will “benefit both for many years.”

We know Formula 1 will benefit from the arrangement because of the astronomical fees they charge countries for the right to host a Grand Prix. According to CNN, in 2012 Singapore paid US$65 million, and Abu Dhabi US$66 million.

These fees are normally covered by governments. For example, Melbourne has just signed a new deal until 2020, and the undisclosed fee will be paid for by the Victorian government.

Interestingly, of the top ten countries with the highest GDP (Gross Domestic Product), eight of them host Formula 1 races in 2014.

Despite these huge costs, Mexico wants a piece of the action. According to Forbes magazine, the five year deal they have just signed with Formula 1 Management will boost their economy, mainly through tourism, by around US$2 billion and create 18,000 jobs. Needless to say, Mexico would be willing to fork out when the benefits are so prominent.

However, they are in some quite intense competition with other nations for these limited places in Formula 1.

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In the last few years we’ve seen plenty of changes to the calendar, with the loss of Turkey, the comings and goings of Korea and India, and the introduction of the USA, Russia, Singapore and Abu Dhabi.

The exposure provided by Formula 1 draws the attention of countries the world over, as can be seen when the rumour mill hints at countries like Azerbaijan, Thailand, and a second USA race as potential venues.

So what does Mexico have that these other places don’t? The answer: A genuine interest in Formula 1.

To date Mexico has hosted 15 World Championship Grands Prix, between 1963 and 1970, before returning in 1986 and ceasing again after 1992. They also currently have a vested interest in the World Championship, with two drivers currently competing in the top tier. Sergio Perez has had reasonable success since making his Formula 1 debut in 2011, and Esteban Gutierrez started in Formula 1 only last year at the tender age of 21.

Of course, the country’s interest in motorsport is far from a new craze. Mexican racing history goes right back to the early days of Formula 1 in the 1960s when the Rodriguez brothers both competed, with occasional success, and carried through to the early 1980s thanks to Hector Rebaque.

But the revitalised presence of Mexico in Formula 1 has engendered a great following for the sport, and could be one of the key reasons for the re-instatement of the Mexican Grand Prix.

In a sport where money talks, and can be the defining factor in so many administrative decisions, it’s pleasing to see that every so often a decision can be made that is in the best interest of the sports spectators, not those who seek financial gain.

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It would be naive to think that money had played no part in the negotiation of Formula 1’s return to Mexico. However, the optimist within is pleased that Formula 1 has made a decision that millions of fans in Mexico will benefit from.

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