MAY 28, 2009

Hungary considers its F1 bills

We suggested some time ago that there would be troubles with the government funding in Hungary, as the country has been caught badly in the financial squeeze. This is now becoming a reality with a government spokesman Domokos Szollar saying that while the government appreciates what the Grand Prix does for tourism in Budapest, the financing of the race between 2012 and 2016 is yet to be finalised. Money was originally due to come from the Ministry of Finance, but it says there is not enough cash to meet the full costs of the deal, which is reported to be $162.8m, which averages out at $32m a year, but according to reports is actually an increase from a fee of $26.7m in 2012 to $39m in 2016, which allows for a 10% hike each year.

This is more than the government wants to spend, but efforts are being made to bring in more government ministeries to spread the burden aound.