"The expenses far exceeded our expectations" - F1 Miami GP organizer sees losses while trying 'to deliver a great event'

The F1 Miami GP promoter has incurred losses after hosting the inaugural event last week, despite expectations that it would turn a profit from the get-go.

Tom Garfinkel, the managing partner at the promoter, attributed much of the losses to higher than anticipated expenses. Speaking to the Motorsport Network following the event, he said:

“If you would have asked me six months ago, I would have expected this to make money based on where the revenues were headed. But based on where the expenses are headed, we’re not going to make one this year. However, it was very important for us to deliver a great event. The expenses far exceeded our expectations, but it was because we were trying to do everything, we could first class to be on brand for what F1 is and the kind of event we wanted to deliver.”

The Coral Gables-resident said much of the expenses came from the promoter’s desire to deliver a much better environment for fans compared to an average F1 race. For instance, the promoter reportedly spent a lot of money on turfing the grandstands and areas which hosted the concessions stalls. This was done to keep the surface temperatures cooler and give fans a much better experience.

Despite the losses, Garfinkel said they are proud to have delivered a “great event” and expects a return on investment from future events. Miami currently has a long-term contract with F1 that runs until the end of this decade at the very least.

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F1 Miami GP aims to increase number of tickets on sale for future events

The Miami GP was anything but an average F1 race, a glitzy event that was chock full of celebrities and VIPs. Compared to an average race weekend, however, the race had a paltry number of spectators.

The relatively low number of spectators was one of the reasons for the promoter incurring a loss. Tom Garfinkel says they are aiming to increase the number of tickets on sale in the future but are mindful of still being able to deliver a quality event. Speaking to the Motorsport Network, he said:

“I’d like to get to 100,000 a day. If we can get there next year, we’ll do that. But if we don’t feel like we can do that, and give everybody a great experience, we will grow it more slowly.”

Throughout the three-day weekend at Hard Rock Stadium, an estimated 200,000 people attended the event, with per-day attendance peaking at 82,000 on race day. Compared to other sell-out F1 races, these numbers are relatively low. For instance, last year’s United States GP at COTA drew more than 400,000 people across the three-day weekend.