The distinguished investigative historian and author Tom Bower noted in his Bernie Ecclestone biography, that “Formula One has proven itself as a unique event [able] to focus the world’s attention on the most inhospitable locations”.
By Graham Duxbury
His reference is to the transformation by the United Arab Emirates of a former “sandy wasteland” into the current $40-billion Yas Marina race track – the venue for the Abu Dhabi Grand Prix. The marina-based development includes a theme park, a water park as well as residential areas, hotels and beaches.
While not all new F1 circuits are created in inhospitable areas, it’s no secret that governments have spent billions of dollars to position their countries as attractive F1 destinations in order to share the special attention-grabbing aura exclusive to F1 – even if it’s only for a few days every year.
Race tracks in Russia, Azerbaijan, Bahrain, China, Singapore and Mexico have emerged and been welcomed as important venues on the F1 schedule.
Funding F1 events is a costly business. In the Ecclestone era, race organisers had to pay a healthy up-front “hosting fee” in order to hold a GP. Circuits in India, Korea, Turkey and Malaysia fell from the F1 calendar when funding (usually government sourced) dried up.
Today, however, under F1’s new owners Liberty Media, the deals appear to be more equitable, with fees being trimmed and productive partnership arrangements established.
The example of the Baku circuit in Azerbijan is worth noting: Baku first hosted a GP in 2016, signing a 10-year contract with Bernie. But in 2019 the organisers activated a break clause as costs (including the hosting fee) had skyrocketed.
Liberty Media quickly stepped in and together with the Baku organisers and the Azerbijan government came up with a deal guaranteeing F1’s return until 2023. “The new contract has been significantly changed in relation to the old one,” says Azad Rahimov, Azerbaijan’s sports minister.
Very soon now, another new F1 circuit will host a GP. The 2020 Vietnamese GP will be held in the country’s capital, Hanoi. The track has been purpose-designed by F1’s “go-to” circuit architect Hermann Tilke. The layout resembles an Eastern Sarus flying crane, a revered bird in Vietnam.
With some cost estimates close to the one-billion-dollar mark, the construction project hasn’t been cheap. However, unlike many new venues, it has not relied on state funding.
Instead, Liberty and the Hanoi city government have cooperated on the management of the project since inception. Their collaboration encompassed fund raising from the private sector for the building of the 5.6km circuit and extends to the imminent hosting of the 2020 GP and future GPs.
Since Liberty Media gained control of F1, CEO Chase Carey has committed to adding to the World Championship calendar. While 22 races in 2020 might seem a significant number, Carey is targeting at least 25 per season.
While Holland (Zandvoort) is a new addition in 2020 and plans are underway for a second US GP in Miami, the next new country in line to be added to the GP roster is Saudi Arabia. If discussions around a purported $65-million-per-year deal are successful, a Saudi GP may be in place as soon as 2021.
Interestingly, Liberty Media is said to have included guarantees on human rights, women’s rights and the freedom of the press in the Saudi deal.
It seems as if the Saudis are keen to open their country to international scrutiny and, from personal experience at the Dakar Rally, appear to be making progress.
No discussion on F1’s future can ignore persistent rumours that Kyalami will return to the GP fold for the first time since 1993. The perennial problem is, of course, funding. The cash-strapped South African government is in no position to back a South African GP.
While the private sector might open its wallets if there is significant return on the investment, it would most likely need Liberty to attract continent-wide support and international backing probably under an “African GP” banner.
Certainly, very few of SA’s F1 fans will be in a position to pay the R5 000 – R10 000 ticket prices common to other F1 races, so subsidies will be required in order to draw the crowds of spectators that will no doubt turn up if the price is right.