The Valencia government has agreed to become a cosponsor of the European Grand Prix to secure the future of the event for the next five years.
The president of the Valencia government, Francisco Camps, met with Formula 1 commercial boss Bernie Ecclestone over the weekend to agree a deal that will see the Generalitat Valenciana invest 18 million euros ($26m) a year for the next five years. The government said it was hoping to find new sponsors for the race in order to reduce the amount of money invested.
Spanish press claimed the event's promoter, Valmor Sports, would have had to come up with the money to pay Ecclestone if the government had not intervened.
It is also believed that Ecclestone's Formula One Management is considering moving the Valencia date to an earlier date such as June or July in order to boost ticket sales by avoiding the holiday season.