What makes cities around the world pay hundreds of millions for the Formula 1 race?

The article examines the economic motivations of cities worldwide to invest hundreds of millions in hosting a Formula 1 race, presenting data on economic returns, tourism revenues, and job creation. It includes reports on the expected profits from the Grand Prix in Madrid and the economic impact of the race in Miami.

The article examines the economic reasons that lead cities around the world to invest hundreds of millions of shekels in hosting a Formula 1 race. It notes that the competition for hosting is fierce, and that the races generate significant financial profits, tourism, and marketing advantages. As an illustration, it reports on the Grand Prix in Madrid, which returns to host the race after 45 years, and is expected to yield an economic return of 467 million euros (1.6 billion shekels) and create 8,850 jobs. Additionally, it reports on the Miami race, where the local economy earned $350 million thanks to 243,000 spectators, and spectator spending totaled $150 million. The article relies on reports in the Spanish newspaper "El País" and the French website "Motorsport."