Sepang may not extend F1 contract

Although the circuit is about to embark on a major upgrade of its facilities, Dato Mokhzani Tun Mahathir, the chairman of the Sepang circuit, has admitted that there are doubts about the long-term future of the Grand Prix.

Speaking to autosport.com at the Autosport International Show, Mahathir said that depreciation of the Malaysian currency meant the race was no longer as cost effective as it was several years ago.

And that financial situation could make the Malaysian government, which funds the event, reluctant to sign off the fee that must be paid to Formula One supremo Bernie Ecclestone to host the race.

"We are in negotiations with Mr. Ecclestone and as you can imagine that is not a straightforward thing," said Mahathir.

"We have to make a presentation to the government. At the end of the day it is the government that foots the bill and they have to decide.

"The problem is that from when we negotiated the original contract and when we took the decision to bring F1 to Malaysia, the Ringgit has depleted by between 40 and 50 percent.

"So it is the cost element that we really have to look at. That is the kind of consideration the government has to consider - because it is harder to justify, especially as F1 as a sport has remained the same."

Mahathir said that he expected a decision to be made soon, rather than waiting until the final year of the current contract.

"It will be this year because there is a lot of talk that other countries are looking at F1 and I am sure FOM will be keen to know where we stand."

Despite the doubts about the long-term future of the race, Sepang bosses are planning to upgrade the pits and hospitality facilities at the track later this year, ahead of major construction work to create a motorsport theme park.

"Everything is being upgraded," he said. "We are looking at more permanent facilities rather than temporary facilities that we used to have only during the race.

"I think it will be easier for the spectators, the teams and the people who are directly involved in the race. Those are the kind of things we are doing.

"We have got a motorsports academy coming up, we are going to build hotels, we are going to build a museum, and we are going to build a theme park. All of that is going to come in stages."