Another track losing its shirt on F1 race

Rumor has it that not many race promoters are making money on their F1 race. In fact they are all losing money. The only way to justify an F1 race is if the government owns the event and reaps the tax revenues that the event generates. Sepang in Malaysia is the latest track that has to be sold after suffering a financial bloodbath.

The proposed disposal of the Sepang International F1 Circuit, which is part of the restructuring exercise of Malaysia Airports Holdings Bhd, is still on, Sepang International Circuit Sdn Bhd general manager Datuk Ahmad Mustafa said.

He says the issue withholding back the sale is the promoter’s agreement between the Formula 1 management and Malaysia Airports Technologies Sdn Bhd, a wholly owned subsidiary of Malaysia Airport.

“If they were to novate the promoter’s agreement, then the Formula 1 management requires the government to guarantee the performance. However, as a sovereign country, the government could not be taken to court," he told reporters at the Proton A1 Grand Prix Pro Celebrity Race unveiling of cars in Kuala Lumpur on Nov 17.

“They, the promoters and the Formula 1 management, are working out a formula and I believe they would announce it soon," Ahmad said. SIC is the organizer of the F1 Grand Prix in Sepang. More at The EdgeDaily