Indian Grand Prix organizers said they hoped to break even within four years and were talking to MotoGP and other race series in a bid to make up for their limited profits from Formula One.
The private Jaypee infrastructure group revealed the plans as other Grand Prix organizers struggle, including South Korea, which is trying to renegotiate its Formula One contract just a year after its debut.
Jaypee spent US$200 million building Buddh International Circuit and another US$200 million on their Formula One license fee, spokesman Askari Zaidi said.
Photo: Reuters
He said the Formula One profits were confined largely to ticket sales as revenues from sponsorship and broadcast rights were controlled by the sport.
However, the company will also profit from building and selling houses and commercial space on a large new development around the track, known as Jaypee Greens Sports City.
“In Formula One, there’s not much scope to make money barring the sale of tickets, but there are other races which we’re planning to hold, like MotoGP, and some other race organizations have contacted us,” Zaidi said on Monday. “So whatever we spend, we hope to recover in four years.”
Zaidi said Jaypee’s agreement with the government was to fill 35 percent of the 1,000 hectare site near New Delhi with sports facilities, including a 100,000-seat cricket stadium, a golf course and a shooting range.
“The rest we can develop and sell as commercial space or houses. That’s how we intend to recover the money,” he said.
Several Grand Prix organizers have wrestled with the dilemma of Formula One, which is known to boost prestige, but at a high cost.
China and Australia are among those who have baulked at the outlay, while Singapore is yet to sign a new contract, and France and Turkey have both dropped off the Formula One calendar.
Formula One boss Bernie Ecclestone this weekend flatly rejected South Korea’s request for a cheaper contract, saying there were “lots of things in life you can’t afford, and you don’t have to have them.”
However, Vicky Chandhok, president of the Federation of Motor Sports Clubs in India (FMSCI), said Jaypee would not have the same problem.
“The organizers and promoters have taken it as an investment, they’re using it as their ground to globalize their image,” Chandhok said. “They’re a very large infrastructure company, they build apartments, they build hydropower, they build golf courses.”
“They will now on the back of this be able to sell their apartments and golf club memberships better. They’re using it as a marketing tool. So the event loss is of no consequence, Chandhok said. “It’s a very good business model. They’re not looking at the event to make money, because everyone knows no Formula One event makes money.”
Chandhok, who was a key figure behind the project, said other Grands Prix events had run into trouble because they were publicly funded.
“Those are government-run. The ups and downs of the governments and the changes of political scene will not affect us. This is private,” Chandhok said. “There, it’s the South Korean government, they feel they can’t afford it any more. So this is the advantage of having a private company running it. We will not suffer the consequences or vagaries of political will.”
Organizers were forced to slash ticket prices to attract visitors to the purpose-built circuit, which is about 40km from New Delhi.
The 120,000-capacity venue was less than half-full for Saturday’s qualifiers and 95,000 fans — 79 percent of the maximum — attended on Sunday’s race day.
Zaidi said Jaypee would open talks with MotoGP, which has 18 stops on its calendar next year, and was “quite hopeful that this thing will come through.”
Bayer 04 Leverkusen go into today’s match at TSG 1899 Hoffenheim stung from their first league defeat in 16 months. Leverkusen were beaten 3-2 at home by RB Leipzig before the international break, the first loss since May last year for the reigning league and cup champions. While any defeat, particularly against a likely title rival, would have disappointed coach Xabi Alonso, the way in which it happened would be most concerning. Just as they did in the Supercup against VfB Stuttgart and in the league opener to Borussia Moenchengladbach, Leverkusen scored first, but were pegged back. However, while Leverkusen rallied late to
The lights dimmed and the crowd hushed as Karoline Kristensen entered for her performance. However, this was no ordinary Dutch theater: The temperature was 80°C and the audience naked apart from a towel. Dressed in a swimsuit and to the tune of emotional music, the 21-year-old Kristensen started her routine, performed inside a large sauna, with a bed of hot rocks in the middle. For a week this month, a group of wellness practitioners, called “sauna masters,” are gathering at a picturesque health resort in the Netherlands to compete in this year’s Aufguss world sauna championships. The practice takes its name from a
Japanese players are moving to English soccer in record numbers and more look set to follow with clubs attracted by their quality, strong work ethic and value for money. Kaoru Mitoma is the standout talent of five Japanese players in the English Premier League, with eight more in the Championship and two in League One. Liverpool midfielder Wataru Endo, the captain of Japan, believes his compatriots are “being held in higher esteem” by English clubs compared with the past. “The staff at Liverpool ask me about lots of Japanese players, not necessarily with a view to a transfer, but just saying this or
Taiwan yesterday survived Bosnia and Herzegovina to win their Davis Cup World Group I tie at the Taipei Tennis Center. The tight series started on Saturday with world No. 123 Jason Tseng losing 3-6, 7-5, 6-4 to Mirza Basic in the opening singles matchup. However, teammate Tony Wu kept the tie even, dominating world No. 86 Damir Dzumhur 6-2, 6-1. Yesterday, 24-year-old Ray Ho and partner 25-year-old Hsu Yu-hsiou kept up the momentum, making short work of Basic and Nerman Fatic, winning 6-3, 6-4. Tseng then suffered another defeat, losing 6-4, 2-6, 6-2 to Dzumhur in a brutal match that lasted more than two