Future of Korean Grand Prix in danger - Formula 1 news
The future of Korean Grand Prix might be at risk in the sport.
Even though it was only debuted in 2010, organisers are warning that the current losses incurred are too much for them to sustain.
The local interest in the event has been dismal. The overall cost of the event came up to around $80 million, which includes the $56 million to be paid to Formula 1 Boss Bernie Ecclestone. The deficit is rumoured to be around $56 million, and organisers
are looking to some lineage in hosting fee.
The race promoter Park Won Hwa, while speaking to Autosport warned that the event to be scrapped entirely unless Ecclestone renegotiates the fee and the term of 10% annual increase.
“We are trying hard, but we need the co-operation of Ecclestone,” he said. “We certainly want to continue with this event because it is a big event, even though we have losses. We want to give this region momentum by holding this event to help boost its
economy and to boost the image, and to change our farming background in this region.”
“He knows perfectly well our current situation, and I hope he is more co-operative.”
The organisers are also under scrutiny and political pressure from those who are arguing the fact that the millions of dollars spent on the event can be used in helping the local economy. The Yeongam circuit is in an agricultural region and the farmers and
other residents of the region have low incomes.
The financial lows have given the citizens all reasons to shun the event, especially when it has failed to attract the locals.
The event in Korea is something to look into for Bernie Ecclestone as the newly unveiled Buddh International Circuit in Noida, India which is destined to host its first Grand Prix, on October 30, 2011.
The circuit has been developed in an agricultural zone, and farmers and local residents are threatening to protest because they feel they have not been compensated well enough for the land occupied to develop the circuit.
The new circuits are essential for Formula 1s’ growth, but sustaining that growth will be integral to its success.
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