SA F1 a reality or just pie in the sky?
Those who follow motorsport closely, and more specifically Formula One, are no doubt trawling the various media available following Bernie Ecclestone’s brief comment over the weekend of the British Grand Prix that he is desirous to stage a race here.
Staging a Grand Prix is an extremely costly and complex affair, especially given the stigma attached to the sport as it’s generally seen as a white elitist affair.
Following the success South Africa enjoyed staging its first, and Africa’s SWC, there’s a lot of speculation as to if, when, who and where.
Given that the SWC cost an estimated R38 billion to stage with just R13 billion flowing back into the coffers, F1, although expensive, is still a viable proposition.
Staging a Grand Prix will cost around R7 billion, or so, over a 10 year period, so recouping that investment won’t be too difficult given the amount of tourism, continuous exposure and subsequent spend that will follow.
The Formula One entourage is a massive one. Besides drivers and team members, there’s the media contingent, families and friends of drivers and teams, as well as die-hard enthusiasts who travel to many races during the course of a given year. Estimates are around the 30-40 000 mark and once you’ve multiplied that by 10 years, it’s a fair amount of bed space that’s required. Factor in inflation and the numbers start to change hue from red to rosy and are not likely to be far behind those of the SWC.
One player who’s bidding to get the rights and has emerged in the public eye is the SA Grand Prix Corporation (SAGPC) which is made up of African Renaissance Holdings Ltd and BKS, with David Gant as its CEO.
Gant shot to prominence some five years ago when it emerged he was attempting to get F1 back to South Africa with land earmarked close to Cape Town International airport.
The SAGPC has been in contact with the Western Cape government and has claimed its dealings were met with enthusiasm. Gant was quick to point out they were strictly proposals and no funding had been requested.
The official comment from Ian Neilson, deputy mayor of Cape Town reads as follows:
“Mr Gant has been in conversation with the City around the construction of a Formula 1 quality race track. The City of Cape Town is looking at a proposal from Mr Gant, but there is no commitment to any funding”.
Back peddle a few months and you’ll remember the DA and Jack Bloom shouting the house down about the now wound up Gauteng Motorsport Company (GMC) and its squandering of taxpayers’ money on events such as A1GP, World Superbikes, its involvement with the then BMW F1 team and so forth. An initiative of the Gauteng-led ANC, the GMC was forced to cancel all the contracts along with stiff penalties.
While the DA criticised the opposition, it’s interesting to note the Western Cape government’s stance on the notion of a race track…
The staging of F1 on a new circuit surrounded by commercial and industrial properties (which would be used to provide the funding of the race etc) could bring employment and massive wealth to the area.
If the SAGPC is successful in its bid, they, along with the currently DA-led Western Cape government are likely to get huge kudos from all and sundry while the ANC-led Gauteng government is likely to rue what could have been a massive injection into the economy. This will no doubt be further exacerbated as sources in Australia have revealed that someone in the Gauteng government was propositioned by a prominent Middle East infrastructure investment group, who expressed interest in funding the construction of the circuit as part and parcel of the periphery precinct development rights.
Their appetite for investment was quoted as being in excess of US$ 1 billion (R7.5 billion) - surely this would make a sizeable dent in the province’s Foreign Direct Investment targets and enough of an offset incentive in its own right?
It has also emerged that Dave McGregor of Premier Motorsport has been contacted by the eThekwini (Durban) council with a view to provide his services and expertise.
McGregor having organised the last SA Grand Prix back in 1993 at Kyalami has similar ideas to SAGPC and will incorporate other utilities to help fund Durban’s bid.
There were plenty of naysayers ahead of the SWC, plenty who are now singing the country’s praises albeit with bowed heads.
I haven’t heard too many bitches and moans about the 38 big ones blown on what is agreeably one the world’s largest sporting events, so is R7.5 billion really a huge chunk to ask of the taxpayer? Hardly, I think, and it will be interesting to see if the flame in Gauteng Legislature’s corridors has been re-ignited with Cape Town and Durban appearing on the radar screen.
