Formula 1’s popular F1 Arcade product has this morning announced its first franchise agreement, with the viewing and gaming hub set to hit the Iberian Peninsula.
F1 Arcade’s flagship location is at One New Change in St Paul’s, but the Formula 1 affiliated experiential hospitality offering also has sites in Birmingham, as well as Boston, Washington DC and Philadelphia Stateside.
They plan to open a trio of sites in Las Vegas, Denver and Atlanta by the end of the year.
But the franchise expansion, signed with Top Racing Iberia, will see F1 Arcade sites open in Madrid by 2027, and then Portugal.
It is driven by a $130m funding round led by Cheyne Capital, which invests in a range of structures including credit and corporate equity.
The round – which closed in 2024 – also saw participation from Formula 1 owners Liberty Media Corporation, specialist credit investor Permira and British bank OakNorth.
Formula 1 expansion
Pablo Juantegui, chief of Top Racing Iberia said: “Joining the F1 Arcade universe is much more than a business decision: it’s an exciting opportunity to bring a unique entertainment experience to Spain and Portugal.
“This partnership links us to a world-class brand and inspires us to open a new chapter in experiential leisure.”
It comes after Formula 1 launched F1 Box in Westfield Stratford, which will offer a simulator experience for short race sessions.
Interest in the motor racing discipline has boomed in the years since the Covid-19 pandemic, with Formula 1 estimating a total global fan base of 827m.
They state in their half-year summary that 43 per cent of their fan base is under 30 years of age, while 42 per cent of the Formula 1 audience is female.
The next Grand Prix is this weekend in Italy, with McLaren’s Oscar Piastri now favourite to win an inaugural solo title.