When questioned about whether the refurbished facility would be ready by the agreed date of 2026, Australian Grand Prix Corporation chairman Martin Pakula was non-committal.
“Ah, no. Let me be very clear about this, in terms of infrastructure investments, they are matters for governments to announce and talk about and not a matter for me to talk about,” he said.
McLaren driver Oscar Piastri heads into pit lane at Albert Park this week.Credit: Getty
“The government will talk about those things in its own time, and it’s not something I’m talking about at this stage.”
Pakula, as a former government minister responsible for the grand prix, was directly involved in the negotiations with F1.
As part of the contract, the government agreed to provide permanent or temporary corporate facilities to accommodate up to 5000 people. The current capacity of the paddock club is 2000 people, with the average ticket selling for more than $6000.
According to documents published by Development Victoria, the government agency responsible for the Albert Park redevelopment, work on the new pit building will now not commence until after the 2026 race.
It will be completed, at the earliest, in time for the 2028 race – two years after the date stipulated in the F1 contract.
Reigning F1 champion driver Max Verstappen careers around the Albert Park track on Friday.Credit: Getty Images
The terms of the Victorian government’s 12-year agreement with Liberty Media – the $12.4 billion, Colorado-based company that owns Formula 1 – to stage the Australian Grand Prix until 2037, including the annual fee paid to F1 to secure the promoter’s rights, are subject to strict confidentiality.
The Australian Grand Prix has some of the oldest pit lane and paddock club facilities in the world.
The world’s newest race, Las Vegas, recently constructed its pit lane and paddock building for an estimated $US500 million ($794 million). Tickets to the paddock club in Vegas sell for an estimated $US15,000 ($24,000).
The paddock in readiness for last year’s F1 grand prix in Las Vegas.Credit: Getty Images
In 2023, the AGPC commissioned Cox Architects to conduct an $847,000 feasibility study into how best to revamp the permanent grand prix buildings at Albert Park. No further funding has been allocated to the project in the state budget.
On Friday, neither the government nor event organisers would comment on the potential cost to Victorian taxpayers.
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Earlier this week, Pakula defended the cost of staging the grand prix.
“The reality is, when you want to be in the business of running an F1 event, there’s a cost involved,” Pakula said.
“The economic return is substantially greater than the cost to the taxpayer, and if we didn’t want this event then there would be jurisdictions lining up to take our place, including one to the near north.”
Last year’s event posted a $102.3 million loss, according to the AGPC’s annual report.
