F1 is big business
I could not agree more with the author, now that we have Malaysian companies who are directly involve in Formula after 13 long years involvement in organizing Formula 1 race at our very own Sepang Circuit.
However, year in and year out after 13 years, the organizer is still struggling to attract a respectable 100,000 spectators over the 3-day race, let alone 100,000 spectators on the race day itself. It is very sad to note many empty seats at the grand stand area from what I watched and witnessed myself from far far away of the circuit. It is very very sad indeed.
Yeah, we can blame the Singapore Formula 1 race factor, but what shall Sepang International Circuit ["SIC"] management do about it ? Seating down and telling everyone that glittering night race of Singapore F1 steals the spectators from Sepang ? Not a wise strategy over long run as people will have had enough of it after quite sometimes.
The organizing right for the race will expire in 2015, and according to the report the Cabinet will decide whether to continue organizing the race beyond 2015 ? Looking at glance the online vote by the Star newspaper, the following is the result as of 13.30 a.m, 16th April 2011 reveals ;
Should Malaysia continue to host the Formula One Grand Prix after the current contract ends in 2015?
Yes 66% (953 votes)
No 34% (482 votes)
Total 1,435 votes
Source
The Star
If I were the F1 supremo Bernie Ecclestone, I would ask the following 3 simple and direct questions;
1. What Malaysia F1 can offer me in return as compared to the others ? What value adding and strategic proposition that you can offer F1 ? Any product differentiation SIC can offer ?
2. How would you address the fact that over the years, SIC is struggling to attract 100,000 spectators and potential dwindling spectators ?
3. What are the plans to address the physical conditions of the track which is dilapidated conditions ?
I do not have the answer myself, one thing I know that SIC is still depending on government assistance and grants to do the repair and maintenance works. This is something that puzzle me. How come it is the case after 13 years ?
Though SIC is under the purview of Ministry of Finance, after 23 years SIC needs to be financially and operationally independent and detach themselves from being directly "associated" with the government. It is a big mistake and not a wise strategy over long run as it will certainly erode the government coffers, and people start to argue and convince that it is yet another "white elephant" projects by the government, enjoyed by selected few.
Bottom line and in the end of the day, SIC needs to be profitable and to be the cash cow to prove otherwise. SIC management shall have to come out with a master plan and blueprint starting from now, if they are seriously thinking to get the extension of the existing contracts and beyond. Do not argue with me about the other organizer are losing money too as I want SIC to make money. I do not care about others. Do not argue with me to that the benefits of organizing F1 race have intangible benefits to the country [ as bigger pictures] , because after 13 years I would like to know that those intangible benefits to be translated to tangible benefits and seen tangibly by others.
The SIC management shall be responsible and accountable to manage the SIC operationally and financially in the most transparent ways.
My view, perhaps the organizer shall accept the following facts ;
1. We were not China, not India and not Russia and Europe who have huge population to offer the number of spectators. We are depending on others as we do not have huge populations to attract even 100,000 spectators.
2. We are not Australia whose populations are passionate about sports and have high income populations. We are not there yet.
3. Time zone different- at 1600 hours when the race is held, local time, what does it means ?
It is 4 a.m in the morning in USA and American Latin, it is 11.00 a.m. and 12 noon in the middle east [ where Sunday is working day !]. It is 10.00 a.m in the morning in Europe, it is 7.00 am. in UK [ market where F1 has huge fans base] and it is 1900 Hours in Australasia and Oceania. We are lucky to have almost the same time zone with North Asia countries like China,Hong Kong and Japan.
4. The competition to organize F1 is becoming more competitive and fierce by the year as many countries realized the benefits of organizing such event in promoting the countries as investment destinations and tourism, and more importantly as branding exercise.
5. Malaysia is a tropical country with temperature can reach 35 degree with 70 % humidity.
6. Malaysia is not high income nation. Though we are trying to be one in the near future. Ticket prices are something beyond imagination and reach by the majority of the populations. Yes , you can get RM 50 ticket but where will be the area you will be watching the race under scorching sun and high humidity ? Under the palm oil tree !
7. Lack of transparencies-how much income or losses SIC generate from the 3-day events ? I would respect and salute SIC if they publish the financial statement to the public since the public money involves here ? Does SIC ready to take up the challenge ?
The next questions, how shall SIC address those of the above and plan the right strategies once the organizer have accepted the facts ?
It is a matter of time before our neighbor Indonesia bid to organize Formula 1 event in the near future. I also regret the decision not to have live telecast of F1 race on the free TVs in the country. It is a backward moved decision.
What shall we do ? I leave it to the wise decision of SIC and parties entrusted with this initiative. For one, I do agree that F1 race shall continue in Sepang, Malaysia but with conditions attached. :)
DISCLAIMER:Notice :Opinions, stories , thoughts expressed are blogger's own and do not necessarily represent the views of the institution or the organizations by which the blogger is employed or any specific person who so ever, either dead or alive.
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