Melbourne strikes deal to host Formula One Grand Prix until at least 2035

Albert Park will host the Formula One Grand Prix until at least 2035, despite a number of rival cities emerging to poach the race.

Formula One bosses and the state government have struck a deal to extend Melbourne’s Grand Prix contract beyond 2025.

The Victorian government has signed a new 10-year contract that will keep the major event in Melbourne to 2035.

Formula 2 and Formula 3 racing will be added to the event from next year.

The details of the new deal were confirmed by Major Events Minister Martin Pakula on Thursday morning.

“We know how important this event is to our economy and that’s why we’ve delivered the longest extension for the race since it has been held in Melbourne,” he said.

Formula One chief executive Stefano Domenicali said he was “delighted” to confirm the Albert Park circuit will continue to be on the calendar until 2035.

A record number of fans turned out at this year’s Formula 1 Grand Prix in Melbourne. Picture: Jake Nowakowski

“The race has always been a favourite for the fans, drivers and the teams and Melbourne is an incredible and vibrant international city that is a perfect match for our sport,” Mr Domenicali said.

This year’s event drew a record crowd of more than 419,000 people over four days and was a major sign the state was roaring back to life.

Melbourne’s bars and restaurants buzzed with visitors and hotel occupancy peaked at more than 90 per cent.

Mr Pakula refused to give details on how much the contract would cost Victorians.

“We have driven a hard bargain,” he said.

“There are jurisdictions around the world who would be prepared to pay astronomical amounts.”

Mr Pakula said disclosing the costs would hinder the state’s ability to attract or retain major events in the future.

“Doing that would simply make it easier for other jurisdictions to take our major events from us,” he said.

“We don’t have the harbour, we don’t have the Gold Coast.

“We have the city, our beautiful regions and our major events calendar that drags people into this state and gives Melbourne a global profile.”

The 2022 race was estimated to have generated $92 million of direct spending in the economy, boosting Victoria’s Gross State Product by $171 million.

A deal over the contract was not inked in time for this year’s race, with insiders at the time saying the length of the contract was the sticking point.

Formula One star Daniel Ricciardo greets fans in Melbourne at this year’s Grand Prix. Picture: Jake Nowakowski

Sydney was among the rival cities keen to hijack the race from Albert Park.

Organisers of Grands Prix in Miami, Monaco, Canada, Hungary, Austin and Qatar have all recently secured new 10-year contracts.

Five-year deals have been struck for races in Spain, Azerbaijan, Britain, France and Italy.

The runaway success of Netflix series Drive to Survive has also grown the popularity of the sport both here and abroad, bringing in a younger and more diverse audience to the sport.

The new agreement will see Melbourne mark 40 years of hosting the Australian Grand Prix, since the event moved to Victoria in 1996.