What F1’s Extension Means for Austin

The Circuit of The Americas track is anything but straightforward: A 12-story incline into Turn 1 kicks off the race, which has a total of 20 corners—among the most across all F1 courses. As drivers navigated those curves, the Austin Grand Prix itself faced a turning point over the weekend, with officials negotiating whether the event would stay in the Texas capital, since the deal was set to expire next year. However, news broke on Sunday morning that the U.S. Grand Prix in Austin will indeed stay in the capital city through at least 2034 under a new contract.

That’s good news for Central Texas, since the economic impact of a single F1 weekend purportedly hovers around a billion dollars, putting it on par with an entire season of an NFL football franchise. The event brings in over 400,000 attendees, who spend money on hotel stays, restaurant visits, and retail purchases (the sales tax revenue alone is in the millions).

Each year since the pandemic has seemed bigger for the annual racing event, but this past weekend felt like a major turning point. Nights were dominated by massive parties with iconic brands like Glenfiddich, Aston Martin, Patrón, Sports Illustrated, and Red Bull as well as newcomers like Uber. And the race itself saw the introduction of new key sponsorships for major brands, including MSC Cruises and Louis Vuitton. The former is a Switzerland-based cruise line that has recently expanded service to Texas and is upending the market with its rapid growth. The global renown of these companies underscores the sweeping reach of Formula 1 as well as the ever-increasing size (and enthusiasm) of the American fan base.

The more entrenched in Austin the race becomes, the more it establishes the capital city on the international stage. Given SXSW’s recent stumbles and the loss of the convention center hub for a stretch of years, it opens the window for F1 to emerge as the city’s marquee weekend—the thing that people think of when they think of Austin.

In addition to the contract extension between Formula 1 and COTA, plans were recently announced for a private members club that will sit at the Turn 1 of the track and provide year-round access. The clubhouse will be connected to the Paddock Club area via an elevated gondola system. The facility will feature not only incredible views of the track but also “ultra-premium” dining, rooftop pools, and fast passes to the new COTALAND theme park (another new addition to the site that embeds it even deeper within our cultural infrastructure).

Formula 1 seems to work best in locales with larger-than-life personalities, and Texas certainly fits the bill. Over the course of the weekend, several drivers—including Pierre Gasly, George Russell, and Max Verstappen—discussed how much they love racing in Austin. Part of that lies in the fact that COTA is a purpose-built track rather than racing through the streets of a city on a makeshift course. But many of the drivers and their teams also cited local food and culture as reasons for loving Texas. You’d be hard pressed to find people who love competition and spectacle more.

While Austin doesn’t have the tenure of Monaco, Monza, or Silverstone, there’s nowhere in the world whose reputation precedes it more than the Lone Star State, which makes the capital city prime to grow even more as an international hot spot over the coming decades.