IFEMA pushed hard to bring Formula 1’s top category to Madrid, but what exactly is it — and why does it matter not only for Spain, but for Europe as well?
The return of Formula 1 to the Spanish capital after 45 years with the new Spanish Grand Prix cannot be explained purely through circuit design or engineering ambition. At the heart of the entire project is IFEMA Madrid, the operational backbone that has made the Madring concept viable from the start.
More than just a venue operator, IFEMA provides the logistical experience, established infrastructure and financial stability needed to deliver a project of this scale without disrupting the venue’s core exhibition business. That combination has become one of the strongest arguments behind Madrid’s Formula 1 push.
Founded in 1980, IFEMA Madrid has grown into Spain’s leading exhibition operator and one of Europe’s most significant event organisations. The consortium ownership structure includes the Community of Madrid with a 31% stake, the Madrid City Council with another 31%, the Chamber of Commerce and Industry with 31%, and Fundación Montemadrid holding the remaining 7%.
Over the years, IFEMA has built a strong international reputation, including being named Europe’s Best Convention Centre for three consecutive years at the World MICE Awards.
These credentials make IFEMA a natural host for world-class events, thanks to versatile infrastructure, modern technology and advanced facility management systems. For Formula 1, this means access to large indoor halls, meeting spaces, extensive parking and support services that significantly enhance both operational efficiency and the fan experience.
Existing infrastructure gives Madrid a major advantage
One of the biggest strengths of the Madrid Formula 1 project is that it is not starting from scratch.
IFEMA already offers a fully functioning environment with active utilities, digital connectivity and operational services in place. While some areas continue hosting trade fairs and events, other sections are being transformed into parts of the Formula 1 circuit. This parallel working model dramatically improves predictability around timelines and costs while reducing the scale of new investment required.
The IFEMA complex spans 200,000 square metres across 12 halls, 85 meeting rooms, two congress centres and multiple outdoor spaces.
As Madring general director Luis García Abad explained: “IFEMA has an incredibly long tradition of organising everything that can be organised in Madrid. It has clearly proven to be one of the engines of the city’s economy and Spain’s economy. All of that organisational capability, combined with the use of pre-existing infrastructure, means we have the crown jewel.”
The presence of existing electrical systems, digital connectivity and fully operational support infrastructure has played a major role in lowering the overall project cost.
Logistical expertise and simultaneous operations
With more than 45 years of operational experience, IFEMA has developed the expertise required to manage complex assembly, dismantling and venue reconfiguration without bringing normal operations to a halt.
Even in its first year of activity in 1980, the venue launched the SICUR exhibition and hosted 15 events in total. That accumulated experience is proving critical for Madring, where Formula 1 construction has advanced alongside IFEMA’s regular business calendar.
García Abad highlighted that one of the most difficult challenges has been complying with the full regulatory framework required in a major European capital — a very different scenario compared to building a circuit in a remote location.
Construction began on 25 April 2025 and has continued through multiple development phases. Work on the La Monumental corner began on 30 June 2025, followed by progress in the Valdebebas sector from mid-July, with construction then moving to the paddock, pit building and Paddock Club infrastructure. Throughout 2026, work continued with resurfacing across multiple sections, culminating recently with completion of the start-finish straight.
Under the project contract, the permanent construction phase must be completed by 31 May. From 1 June, installation of temporary infrastructure — including grandstands — will begin ahead of the race weekend scheduled for 13 September. Addressing concerns over deadlines, García Abad said: “The doubts came from a lack of understanding. Construction projects always involve uncertainty.”
He specifically pointed to adverse weather conditions, including a prolonged period of storms that delayed the asphalt work originally planned for late December.
Financial strength and the business model behind the project
IFEMA operates under a business model built around organising its own trade fairs and leasing venue space to third parties. Roughly 90% of its revenue comes from flagship events such as FITUR, Fruit Attraction, SICUR and other major exhibitions.
Raúl Díez Vázquez, communications director, explained to Palco23 that the organisation operates with financial independence: “We have our own profit and loss account; we make money, and that amount goes directly into reserves without distributing dividends.”
Aside from the disruption caused by the pandemic, IFEMA’s financial performance has remained strong. In 2025, the organisation reported revenue of €216.8 million and net profit of €18.7 million, representing a 22% increase compared to 2023, alongside EBITDA of €42.8 million. This growth has been driven by expansion in its exhibition business and increasing international reach, with record editions of major events helping strengthen its market position.
That organic financial strength provides a major foundation for Madrid’s Formula 1 Grand Prix project, setting it apart from many circuits that rely heavily on continuous public subsidies to remain viable.
The Madrid Formula 1 project therefore rests on three major pillars: proven organisational capability, existing infrastructure and an efficient commercial model that blends tradition with world-class event execution. For Formula 1, that makes Madrid far more than just another new venue — it makes it a strategically engineered long-term proposition.
Leave a Reply