Why Formula 1 has become the global business everyone wants to join

Formula 1 is such a lucrative business that nobody wants to be left out

Modern Formula 1 has fully embraced a basic economic principle: control supply to increase the value of demand. That is exactly what Liberty Media has done with the Formula 1 calendar, transforming Grands Prix into a limited, highly desirable, and increasingly expensive product. With 24 races now considered the championship’s ideal balance, the category has found a sweet spot — enough events to maintain a strong global presence, but not so many that each individual race loses its prestige or commercial value.

The consequences are becoming increasingly clear. More promoters are eager to secure a place on the Formula 1 calendar, while many historic European circuits are struggling to justify the enormous financial burden required to remain part of the championship. Today, hosting a Grand Prix often requires annual fees well in excess of €50 million. That is a figure many emerging nations or highly centralised governments can support relatively easily, but one that several traditional European venues now find difficult to sustain.

The case of Belgium is particularly telling. Spa-Francorchamps, one of Formula 1’s most iconic circuits, has been forced to accept a biennial rotation just to remain part of the world championship. Barcelona appears to be heading toward a similar arrangement, while Zandvoort and Imola have already fallen out of the long-term picture. Traditional Europe — the region that helped build Formula 1’s very identity — is gradually losing its central role.

At the same time, new projects continue to emerge, including within Europe itself. Madrid has embraced Liberty Media’s commercial vision and successfully positioned itself within Formula 1’s new political and business framework. Turkey has also returned as a serious contender, backed directly by government support close to President Recep Tayyip Erdoğan. Modern Formula 1 is no longer just about motorsport — it is also about geopolitics, regional promotion, capital attraction, and international branding.

Danish Grand Prix ambitions and Formula 1’s commercial appeal

That broader context helps explain the growing interest from Denmark. There is not yet an official, fully structured bid, nor any advanced negotiations with Liberty Media, but the movement building around Padborg Park suggests a clear direction.

The Danish circuit is currently undergoing a major technical redevelopment, with former Formula 1 driver Alexander Wurz involved in the project to help bring the venue up to FIA Grade 1 standards — the mandatory requirement for hosting a Formula 1 Grand Prix. It is a lengthy, expensive, and technically complex process, making a debut before 2029 or 2030 highly unlikely.

Historically, Denmark has never been a central player in international motorsport. Its Formula 1 presence has largely been associated with the Magnussen family, with Kevin Magnussen and his father Jan Magnussen representing the nation at the highest level. Yet the landscape may be shifting.

Rebecca Steela, the project director, recently pointed out that Northern Europe has remained largely absent from Formula 1’s commercial expansion over recent decades, while political and business interest in closing that geographical gap is now clearly increasing. That is not an insignificant development.

Europe loses ground, but still wants in

Today’s Formula 1 delivers extraordinary global exposure. A Grand Prix is no longer simply a weekend sporting event — it becomes a massive and ongoing international marketing platform. It boosts tourism, attracts investment, promotes cities and regions, and significantly raises a country’s international profile. Liberty Media has built the category’s commercial model precisely around this concept.

That is why governments, sovereign wealth funds, and public administrations continue to see Formula 1 as a strategic investment, despite the soaring costs. The championship has evolved into a powerful instrument of economic diplomacy and territorial promotion.

Denmark’s potential candidacy should therefore be viewed as part of a much broader trend: no one wants to miss out on the immense global exposure that Formula 1 now offers. Even regions traditionally considered peripheral to motorsport are now trying to secure a place on the calendar.

The paradox is striking. While traditional European powers are losing ground financially, new European players are still eager to join the system. It is yet another sign that the Formula 1 product has never been commercially stronger than it is today.

In conclusion, Denmark’s ambitious project at Padborg Park underscores how Formula 1’s booming commercial value is reshaping the global sporting landscape, proving that even as traditional European circuits struggle with rising costs, the allure of F1 as a premium geopolitical branding asset continues to attract new territories eager to secure their piece of the pie.