Sepang F 1 racing: view from the grandstand

I wrote an article on the F1 racing in Malaysia. It drew a respectable number of comments. Clearly, there are more people out there who are more knowledgeable about this industry than I. Since then, my interest in the subject has increased.

I am not the only one paranoid over possibilities of people using some grandiose ideas as means to make us suckers. I am beginning to see, this is another scheme of skimming money from the kitty. Does Sepang make money or does MAHB who owns the circuit cares?

I once asked a former very senior UMNO leader and a senior minister at that, about the F1 racing. Since he is also a racing enthusiast, I asked him whether the Sepang circuit makes money. He answers flatly no.

Then how can it survive? No one he says hosts a racing event makes money nowadays. So how does it survive I pressed on? We don't see Sepang merchandise all around do we? Do they make money?

They do, by asking money from the government. They get all sorts of subsidies. Maybe deferred tax on earnings, reduced tax, no tax, and services in kind, grants etc. we can never know. We don't have audited reports. They spend like it's their father's money.

The government sometimes allows Sepang to have rights over special lottery draws. Oh.. itu macam. Saya pun boleh buat ini business and after that I too can drive around in my Bentleys, hummers, or Cayenne. No big deal. We have been hailing certain personalities as being proven entrepreneurs. In reality they are a bunch of bullshits. Fcuk bananas. Fcuk Sepang.

We haven't been told how much it cost the government to build the circuit? Or was it the MAHB who fully shouldered the cost and how much is that? What's the annual hosting fee? USD 20 million?

The government should stop backing these people with money. MAHB who owns the Sepang circuit must find its own ways to make money. It should build better airports and collect from whoever owes it money. Air Asia who is making tons of money must pay for using the airport. If not, why are you people in MAHB sitting on your backsides?

How much money was actually spent in building the circuit? How mucxh money has it paid Formula One Organizers to hold the races? How much money has it collected? How much tourism was attributed to people coming over to see people having fun in the ultimate phallic symbols? It's said the adrenalin surges in drivers are substitute for the surges achieved at sexual orgasms. I don't know that. But I certainly know of one personality in the multinational company I once worked with, was said to be impotent but compensated his inadequacy there by taking up crazy racing on weekends.

Sporting events such as F1 racing has become a major business industry and perceived as tool for improving the economies of host countries, regions or cities. It's nice if MAHB or the government can show us some economic impact analyses. How many jobs were created? Spillover businesses? Bumiputera businesses? Tourism revenue. Nyonya Ng Yen Yen- lu takde bikin a-na-li-sa ka? Bulapa manyak olang mali wo.

Bernie Ecclestone and the bankers with him are laughing at our antics. If people fight over who gets to use the Lotus name, he doesn't give a tinker's cuss. Eventually one of the suckers will come to negotiate with him on the rights to participate. The whole grand prix thing, since Bernie turned it into some commercial behemoth, has generated bidding wars amongst prospective host countries.

But at what price and what wonderful stories were told to us? Paying the price has commonly involved event organizers inducing governments to provide public funding, telling stories about indirect economic benefits that the event will generate. Where are the results though? The stories are seldom accompanied by a detailed and independent economic impact assessment, to substantiate the claimed benefits. Khazanah, EPU, Pemandu- lu orang semua bikin lah. So that we armchair critics can counter your arguments. Come on, don't be bashful; we aren't as good as those Mckinsey boys.

Why do people go see the races?

Those adrenalin junkies or those who want to be seen and see are all addicted to the high speeds, spectacular overtaking moves, horrific crashes, superman drivers, super-fast pit stops, team tactics and not forgetting the beautiful women. Yes sir, those clad in tight micro skirts. People can memorize those racing for Ferrari (Italian), British-American Racing Honda (British), Renault (French), Williams F1 (British), West McLaren Mercedes (British), BMW Sauber BMW (German), Toyota F1 (Japanese), Red Bull Racing (American), Midland (Russian), Torro Rosso (American), and Super Aguri (Japanese). We can even mesmerize people with our knowledge of engine manufacturers: - Fait - Ferrari (Italian), Honda (Japanese), BMW (German), Mercedes Benz (German), Toyota (Japanese), and Cosworth Ford (American).

Don't forget the Tyre Manufacturers: - Bridgestone (Japanese) and Michelin (French). Then there are the fuel and Oil Suppliers: - British Petroleum, Elf, Esso, Mobil, Petrobras and Shell, PETRONAS.

Why are we enamored with F1 racing? Of course it started with our grey eminence- that man who can walk on water- Tun Dr Mahathir. He wanted to bring motorsports here in Malaysia. F1 Teams are brought here to entertain billions of spectators across the world. The teams vie for the prestige and the honor of being crowned the best constructor (cars, tyres and fuel) and /or driver in the world. We the Sponsors are over the moon to be associated with the best motorsport and /or F1 team in the world and to enjoy global exposure.

But let us pause for a moment and analyze how much it cost is to host a grand prix? A racing circuit must obtain a T1-licence to qualify to host a F1 GP testing session. However to host an actual F1 GP the circuit must receive a Grade Circuit License and such license is only obtainable from the FIA.

Since 1999 F1 GP has been brought to Malaysia, USA, Bahrain and China. This was however at very high monetary costs, the major cost requirement being circuit construction and annual hosting cost. In the cases of the USA, China and Malaysia the government not only played a role in the construction costs of the circuit but also contribute to the annual hosting cost.

Does hosting the F1 race and sponsoring 3 teams to race beneficial to our economy or rather does it benefit a selective group of individuals actually?