Turkey is returning to Formula 1 after a six-year hiatus, with an expected economic impact of $200 million per year

"The Turkish Grand Prix is returning to the calendar for at least five seasons.

The Turkish Grand Prix is returning to the Formula 1 calendar starting in 2027 after a six-year hiatus. A new agreement signed between the series’ management, the Turkish Ministry of Youth and Sports, and promoter Can Holding secures Istanbul Park’s status as a championship round for 2027–2031. According to the publication Milliyet, the deal is worth $250 million.

The case of Turkey clearly illustrates how the status of Formula 1 has changed in the eyes of nations over the past decade and a half. In 2011, Turkey left the championship due to a pricing dispute: then-series boss Bernie Ecclestone demanded an increase in the annual fee from $13 million to $26 million, and the government deemed such expenses unreasonable.

After the series came under the management of the American media holding Liberty Media in 2017, Formula 1 transformed into a highly sought-after marketing product with annual revenue exceeding $4 billion. Thanks to the documentary series Drive to Survive and its expansion on social media, the series’ audience has grown to a record 827 million people. Istanbul now views the Grand Prix not as a sports weekend, but as a promotional showcase for thousands of affluent tourists.

The structure of the deal is telling. Instead of direct subsidies from the budget, Turkey has shifted to a strict public-private partnership. Two years ago, the Jan family acquired a 30-year lease on the racetrack for $117.8 million through the Can Bilim Eğitim Kurumları A.Ş. consortium. Under the terms of the tender, the operator is obligated to ensure the race takes place—otherwise, the land lease contract may be canceled.

In addition, the investor must modernize the racetrack and develop 210 hectares of adjacent land with shopping centers and entertainment zones. The Turkish Automobile Sports Federation (TOSFED) serves as the operational guarantor and financial controller: if the event is canceled, the investor will pay the federation an annual penalty of 25% of the promoter’s contribution.

The political framework for the agreement was personally secured by Turkish President Recep Tayyip Erdogan. Following his meeting with FIA President Mohammed bin Sulayem in the spring of 2024, the project was designated a priority of national interest. Lale Jander, head of the Turkish division of Pirelli—the exclusive tire supplier for Formula 1—also played a significant role in preparing the agreement; her direct contacts with championship leadership allowed for a spot on the 2027 calendar to be secured promptly.

The economic calculations are also telling. The expected annual contribution of the race weekend to Turkey’s GDP is estimated at $200–250 million. Organizers plan to attract around 200,000 visitors—primarily from Europe and the Middle East. In this model, the state effectively receives a net profit: all risks and costs of hosting the race are borne by a private investor, while the treasury is replenished through tourism spending and tax revenues.

An additional incentive is expected to be the tax reform announced by Erdogan, which includes incentives for new residents: individuals who have not paid taxes in Turkey for the past three years will receive tax exemptions on foreign income and capital gains for up to 20 years.

Analysts caution against excessive optimism. “The idea of hosting a Grand Prix is risky, and some countries have already learned this the hard way,” notes analyst Anish Munka. “South Korea lost $37 million on the 2012 race and was never able to recover. India’s losses amounted to $24 million in 2013. Australia incurs losses every year, but the government continues to write checks because Melbourne attracts about $150 million in tourism revenue.” The Istanbul Park circuit itself, designed by legendary architect Hermann Tilke, was popular among drivers due to its complex layout—particularly the famous Turn 8 left-hander with maximum lateral G-forces.

The Turkish round will replace the Dutch Grand Prix on the calendar, the last of which will take place in Zandvoort in August. The Barcelona-Catalunya Grand Prix will return in 2028 as part of a rotation with Belgium. The return of the Portuguese Grand Prix for 2027–2028 was previously announced. Among the countries expressing interest in hosting races in the future are Rwanda, Thailand, and South Korea, as well as India, where the series may resume its presence.

In the 2026 season, the Bahrain and Saudi Arabian Grands Prix were canceled due to the escalation of the military conflict in the Middle East—resulting in losses of at least $200 million for the series."