A Formula One race in Austin next year would generate just under $288 million in direct economic impact for the area, according to an estimate released Monday by promoters of the race. That spending would produce $26.6 million in new tax revenue for the state, according to the study. The numbers are crucial to F1 race promoters' efforts to secure $25 million in public incentive payments from a state program designed to lure large, primarily sporting events to Texas for their economic development potential. The Major Events Trust Fund, which is administered by the comptroller's office, in the past has been used to draw the Super Bowl and NBA All-Star games to the state.
Infact Daily reports, According to an economic impact study prepared for the local organizers of the Formula 1 Grand Prix race, the city would gain $4.57 million in tax revenue if the event were sited in Austin. The study, done by economist Don Hoyte, suggests that as many as 120,000 people – 94,684 of whom would travel in from outside of Texas – would attend the event.
Jon Hockenyos, a public policy consultant, reviewed the numbers on behalf of the City of Austin, which must sign off on the incentive deal before it is reviewed by state officials. In a letter dated Monday, he cautioned that because of little historical F1 financial data, "the assumptions for this first event plausibly could vary from what is presented."
The Austin American Statesman report: