How the Formula 1 deadlock may impact the São Paulo economy

Formula 1 has always drawn attention in Brazil, but in 2019 the spotlight was turned on the local Grand Prix (GP) earlier than usual—and it illuminated a troubling situation. Instead of betting on who might win the race, Brazilians are now asking whether the country will still host a race at all—and what might happen to their jobs if not. 

Brazil has been hosting a Formula 1 GP for the past 47 years and, since 1990, the race has been held at the Interlagos track, in São Paulo. The country is also, by far, the biggest market for the sport, with more than 115 million viewers—a passion fostered by the legacy of pilots like Nelson Piquet and late national idol Ayrton Senna. 

But, for São Paulo, Formula 1 is more than just entertainment. According to data provided by City Hall, the GP generated BRL 334 million in 2018, creating 10,000 direct and indirect jobs. With 77 percent of tourists coming from abroad, it is the most significant event for international tourism in the city, impacting a local industry that generated BRL 330 million in tax collections last year. 

This is now being brought into question by the expiration of the city’s contract with Liberty Media, the American company that owns Formula 1, next year. An open battle has broken out over the hosting of the race, which may end up with the country losing its place as an F1 host altogether.