Pulled from wikipedia:

F-Zero begins in the year 2560 where the human race's countless encounters with alien life forms throughout the universe greatly expanded Earth's social framework resulting in trade, technology transfer, and cultural interchange are carried out on an interplanetary basis. An association of wealthy space merchants created the "F-Zero Grand Prix", in an attempt to add some excitement to their opulent lifestyles. When the first race was held, people were angered at the brutality of the competition, due to the various obstacles and traps along the raceway. As time passed, however, they became accustomed to these dangers, and even began to demand more excitement and danger in the races. Winning the F-Zero championship soon became the highest claim to fame in the universe. This period of time is called the "old-school" F-Zero days where the rules seemed non-existent in F-Zero X.