Hungarian Conservative

Costs of Hungaroring Renovation Entirely Covered by Formula 1 Contract Extension

Chief of the PM’s Office Gergely Gulyás (R2), Zsolt Gyulay , President-CEO of Hungaroring Sport Ltd (R3), and Zoltán Juhász, Technical Director of Market Építő Ltd (R), after the press conference at Hungaroring on 12 February 2024.
Szilárd Koszticsák/MTI
The contract extension for the Hungarian Grand Prix Formula 1 race will cover the comprehensive renovation of the Hungaroring, currently underway and scheduled to be completed by 2026.

Chief of the PM’s Office Gergely Gulyás stated that the extent of the royalty discount negotiated during the contract extension for the Hungarian Grand Prix Formula 1 race will cover the comprehensive renovation of the Hungaroring. The renovation is currently underway and scheduled to be completed by 2026, for less than the negotiated amount.

Minister Gulyás spoke at a press briefing held by Hungaroring on Monday at the racing track in Mogyoród, where works are in full swing, primarily focusing on the transformation of the area behind the pit lane, known as the paddock.

The leadership of Hungaroring has achieved a significant milestone by extending the contract with the Formula 1 rights holders for five years, until 2032, back in the summer of 2023. However, it was a requirement that we fully renovate the track. In return, over the past years, we managed to negotiate a more favourable royalty fee. Thus, it can be stated that until 2032, the Hungarian state will save 107 billion forints, which is more than the cost of the modernization,’ Gergely Gulyás explained. He further elaborated that following the government decision in April last year, the procurement procedure was announced, and the lowest bid won, amounting to 78.9 billion forints, inclusive of a 10 per cent contingency reserve.

‘So far, a total of 12 billion forints have been disbursed, and currently, the second phase of construction is underway, which commenced in October last year and entails remarkably extensive work. Throughout the modernization process, a total of 9,000 individuals will work at Hungaroring, with 57,000 square metres of buildings being constructed, 125,000 cubic metres of earth being moved, 34,300 metres of reinforced concrete structures being installed, aided by nine tower cranes,’ the minister stated. He added that the renovation of the Hungarian Formula 1 track has long been overdue, highlighting Hungaroring’s significant role and importance in the domestic sports history over the past decades, even before the regime change.

The main straight during construction, photographed on 12 February. PHOTO: Szilárd Koszticsák/MTI

‘Alongside Monza, this is the only other track where the Formula 1 Grand Prix has been held continuously since 1986. This tradition will continue this year and next, and in 2026, the completely revamped facility will host the Hungarian Grand Prix,’ declared Gergely Gulyás, emphasizing that this investment is financially beneficial for the Hungarian state as the Formula 1 weekend represents one of the highest revenue-generating events annually for domestic tourism.

President-CEO of Hungaroring Sport Ltd Zsolt Gyulay recalled that they began ‘planning’ the renovation in 2015 and after numerous plans and negotiations, last year, they finally received government approval for the modernization of the facility.

‘With the arrival of the new rights holder, Liberty Media, we sensed changes in demands and the entire business world surrounding Formula 1. Nowadays, such a race weekend can be considered a four-day festival,’ emphasized Zsolt Gyulay. He added that due to the transformation and expansion of the paddock area, the start of construction had to be rescheduled, but this part of the renovation will be completed in time for this year’s race.

The paddock area will increase by approximately 3,000 square metres, reaching roughly 8,300 square metres, and the base area of the main building will expand to 31,017 square metres. We also need to expand the pits to comply with the regulations of the International Automobile Federation, the FIA. The biggest challenge will be between this year’s and next year’s Hungarian Grand Prix when the main building and the Super Gold grandstand in the main straight will be demolished and rebuilt,’ said the President-CEO, indicating that they provide monthly reports and keep Liberty Media informed about the progress of the renovation. Gyulay also mentioned that they will demolish the pedestrian bridge above the main straight, replacing it with two tunnels, one for the professional staff and one for the spectators. Behind the main grandstand, they will create a roughly 10,000 square metre ‘community space’ because they hope that after the renovation, Hungaroring will become a visitor centre hosting many events. ‘In addition to the track’s renewal, the Hungaroring brand is also being modernized. Starting from 2026, we aim to operate with a new image and business policy. As a first step, our logo has been redesigned, which we will introduce from today,’ announced the President-CEO.

Related articles:

Government Backs Developments at the Hungaroring
Hungaroring’s Next Lap: Formula 1 Track’s Second Development Phase Commences

Sources: Hungarian Conservative/Hungaroring/MTI

The contract extension for the Hungarian Grand Prix Formula 1 race will cover the comprehensive renovation of the Hungaroring, currently underway and scheduled to be completed by 2026.