The Monaco Grand Prix's Most Interesting (And Secretive) Details
A deep dive into the untold stories, hidden infrastructure, and staggering wealth behind Formula 1's most iconic race.
Welcome back to our annual edition of the Monaco Grand Prix’s most interesting and secretive details. Similar to the breakdown we do for the Masters Tournament every year, which is easily our most popular newsletter, today we will dive deep into some of the most interesting details around Formula 1’s most luxurious race.
Topics discussed in today’s newsletter include the $200 million superyacht that quietly changed hands (and changed names), how Red Bull floats a 13,000-square-foot building into the harbor, the 1918 treaty that keeps Monaco from needing an army, why a country that bans its own citizens from gambling owns the casino anyway, where the 400+ private jets are actually coming from, and how the world’s smallest country sets up an F1 track (in 6 weeks) without shutting down its streets.
Enjoy the race (and feel free to steal a few of these facts to impress your friends)!
Monaco’s Financial Benefits: More than half of all F1 drivers live in Monaco, including Lewis Hamilton, Max Verstappen, Lando Norris, George Russell, and Carlos Sainz. People will tell you this is because the weather is nice and the Nice airport is only 15 minutes away, but the real reason is taxes. Monaco doesn’t have any income taxes, wealth taxes, local taxes, property taxes, or capital gains taxes.
Residency in Monaco: If you plan to stay in Monaco for more than three months, you must obtain citizenship or a residency permit. To qualify for residency, you must prove you: 1) own property or have signed a 12+ month lease, and 2) have sufficient financial resources by depositing $500,000 in a local bank account.
200+ Yachts: More than 200 yachts show up in Monaco for the Formula 1 Grand Prix every year. About half of these yachts can secure a trackside spot in Port Hercules, with the largest boats paying $150,000 per week in docking fees and more than $1 million after all expenses (crew, fuel, insurance, etc.) are tallied. For yachts that are unable to secure a spot in Port Hercules, or are simply too big to fit, they drop anchor and then jump on a tender when they want to go into town.
Monaco’s Host Fee: While many of the sport’s newer tracks pay Formula 1 between $30 and $50 million annually to host a Grand Prix, Monaco’s fee is still under $20 million per year. In fact, Monaco actually used to pay $0 (because of its historical significance), but with so much demand for new races from tracks around the world, Liberty Media has forced Monaco to pay its fair share while also taking away some of the race organizer’s control. For example, Monaco used to control all trackside advertising, which often clashed with F1’s global partners, as well as the live race broadcast, creating an inconsistent experience for viewers. No other races were awarded these benefits, so, as part of its new agreement, Monaco gave back some of its control in exchange for a below-market hosting fee.