Melbourne driving a deal on Grand Prix extension

With a number of rival cities emerging, this new move has given Victorian F1 fans a big indication about the future of the Albert Park race.

Talks have begun to extend Melbourne’s Formula One contract amid calls for the state government to lock in a long term deal to secure the event’s future in Victoria.

With F1 riding a global wave of popularity, the Herald Sun can reveal the government has instructed the Australian Grand Prix Corporation to start negotiations with the sport’s owner’s Liberty Media for a new deal.

Melbourne’s contract is due to expire in four years and Sydney is among rival cities keen to hijack the race from Albert Park.

Victorian taxpayers who tipped in more than $60 million to bankroll the last pre-pandemic Melbourne event in 2019 could have to pay a higher price to keep it, with the US among nations pushing for more races.

Rival cities are keen to hijack the race from Albert Park. Picture: AAP

But Sports and Major Events Minister Martin Pakula confirmed the government was keen to stave off competitors and sign a new deal.

“The Formula One Australian Grand Prix is a pillar experience for Melbourne, confirming our status as Australia’s sporting capital and a premier destination for international events,’’ he said.

“We are confident that we will keep the event and extend the contract.”

F1 sources said it was likely Melbourne would seek a deal of between five and 10 years, aiming to lock the event away as the Andrews Government prepares for an election year.

Melbourne’s contract is due to expire in four years. Picture: AFP

The most recent contracts for F1 events in Saudi Arabia, Miami, Monaco, Canada, Hungary, Austin, Qatar were all 10 years.

The most recent contracts for Spain, Azerbaijan, Britain, France, Monza, Russia and Brazil were five year deals.

The last Albert Park contract was a two-year extension, guaranteeing the race in Melbourne til 2025.

A three-year contract extension was signed in 2015, locking in the Albert Park event til 2023.

And a five year deal was struck in 2014 to stage the race between 2016 and 2020.

Martin Pakula says he’s ‘confident’ Melbourne will extend its contract for the event. Picture: AAP

Australian Grand Prix chief executive Andrew Westacott said the corporation had “a brilliant relationship” with Formula One management.

“And our intention is that Melbourne remains F1’s home in Australia for many years to come,’’ he said.

“The buzz around the return of Formula 1 after a three-year absence is palpable and we can’t wait to welcome a massive crowd back to Albert Park in April.”.

F1 has become one of the world’s most popular sports, thanks in part to hit Netflix series Drive to Survive which has attracted a younger audience and made megastars of drivers.

Lord Mayor Sally Capp said the benefits of hosting the Grand Prix “cannot be understated” and the City of Melbourne “would strongly support the State Government in a bid for a new contract”.

“A long-term contract would ensure Melbourne can continue to reap the rewards of the Grand Prix, and continue showcasing this beautiful city to Formula One fans from around the globe,’’ she said.

Victorian Chamber of Commerce and Industry chief executive Paul Guerra said Melbourne was the only city in the world with a Grand Prix and tennis grand slam and “should continue protecting them fiercely’’.

“Of course, other cities want to poach our major events and that’s a testament to their value on the global stage,’’ he said.

“The business community would certainly welcome a longer-term contract which would enable them to plan, prepare and invest to facilitate an even better event for years to come.

“When a city hosts any international event, the eyes of the world are watching and we know Melbourne shines brightest when we stage a major event like the Grand Prix.”