The Hungarian government will be covering the cost of hosting Formula 1 races at the Hungaroring from 2017 to 2026, reports Hungarian news site 444.hu. News of the government’s decision to use public funds for this purpose could be found in Wednesday’s edition of the Hungarian Gazette (Magyar Közlöny), the government’s bulletin.
According to the Hungarian Gazette, the government will be paying USD 37.4 million in 2017 to host the race. The annual payment will increase by 5 percent year-on-year until 2026.
This means that from now until then, the government will be paying more than half a billion dollars so that Hungary can run a grand prix.
444.hu reports that more developed countries, such as Germany and Italy, have already expressed their dissatisfaction with the high rates charged by Formula 1 Group CEO Bernie Ecclestone.
“There are various calculations and accounting companies that have proven that this investment comes back five- or sixfold,” said Hungarian Minister of National Economy Mihály Varga earlier this year.
Foreign Minister Péter Szijjártó has said “it is in Hungary’s economic interest to host the Formula 1 race because each such event brings in HUF 17-17.5 billion”.