The Weekly Grapevine

Shaping the calendar

Contract renegotiation time, it seems, is hitting various circuits in and out of Europe - and some may not be willing (or able) to cough up the huge amounts required by Formula One Management, which, forget not, will soon fall under the spell of CVC Partners, who will, in all likelihood, raise a bond to cover the purchase price agreed with Bernie Ecclestone and the trio of banks from whom they bought FOM's parent entity, SLEC.

That said, race hosting fees are expected to rise dramatically in the near future, and with countries such as Bahrain and China seemingly willing to splurge upwards of $40m (USD) merely for the privilege of hosting F1's circus for a weekend, why should the commercial rights' holder settle for a measly $11m (USD) or so from the likes of Nurburgring, Hockenheim or Imola?

It is a standing joke in F1 circles that whenever a second circuit in a particular country is whispered to be in the running for a Grand Prix, Ecclestone is pressurising the incumbent promoter ahead of contract renewal. Normally it works...

This week, though, some other forces seem to be at work, for Spain's existing concession via Circuit de Catalunya is hardly under threat, and the facility situated a half hour north-east of Barcelona has recently extended grandstand capacity by upwards of 10,000 seats. These in addition to similar extensions a year ago.

In fact, the Barcelona circuit is well on track to attract record spectator levels at stratospheric prices thanks to the 'Alonso Factor', and by no stretch of anybody's imagination could the promoters either a) not afford any imminent increase in fees, or b) be, unlike one or two European circuits, in financial straits.

Why then did Ecclestone visit the Circuit Ricardo Tormo nestling in some sandy but rolling hills outside Valencia? Given that the CEO of F1's commercial affairs presently has, what with the pesky GPMA's regular threats, the renegotiation of the post-2008 code of commercial conduct and the approved take-over of various of his companies by CVC, some exceedingly weighty matters on his mind, he was hardly taking a vacation which co-incidentally fell over a GP2 weekend.

Thus, whilst the feeder series has received more than merely tacit approval from F1's ringmaster, and GP2 driving force Flavio Briatore, who accompanied Ecclestone on the visit hosted by city mayor Rita Barbera and regional president Francisco Camps, is certainly on better than nodding terms with him, the rather unexpected visit to Valencia understandably aroused suspicions that one or other circuit was about to be placed on notice. Which one (or two, or three), then?

Fernando Alonso (Renault) in the 2005 Spanish Grand Prix at Barcelona © LAT

First out of the blocks with a denial was Nurburgring. During a media conference called specifically to address such concerns, the circuit's Dr Walter Kafitz was adamant that a three-year deal was in place with Ecclestone, although unsaid was that the 'Ring' may in future have to enter into a roster agreement with financially strapped Hockenheim - leaving Germany with just one Grand Prix after the '(Michael) Schumacher Factor' evaporates with either a continued downturn in Ferrari's performances, a switch to another outfit or his retirement.

Kafitz added that advance ticket sales for the European Grand Prix on 7 May had "climbed, up maybe 70 per cent over the same stage last year. We have sold 120,000 tickets already", although whether "the same stage" meant four weeks ahead of the race which this year is being run a month earlier than usual, or at the same stage in the Gregorian calendar, remained unclarified.

Certainly the circuit's advance sales would have benefited from the temporary demise of the Belgian Grand Prix, this year removed from FIA calendar over financial and construction issues. Belgium's venue, Spa-Francorchamps, lies only an hour or so south-west of the Nurburgring, and where before northern Europeans chose between the two, this year that luxury has been removed.

In fact, during last year's Belgian Grand Prix Ecclestone told a Belgian newsman that he found it increasingly difficult to justify three Grands Prix situated within a few hundred kilometres of each other - Hockenheim lies 200 and 300 kilometre south and south-east of Nurburgring and Spa respectively - and that sooner or later one or other venue would disappear from the calendar.

Then, with the German circuit being closest of all to Poland, the BMW-driven '(Robert) Kubica Factor' could well have contributed to the Nurburgring's increased sales. Should Spa be, as expected, be reinstated, should Kubica fail to find sustained F1 employment, then spectator numbers at the Eifel track could drop below 'normal', particularly should Schumacher leave the fray.

The circuit, though, is said to carry very little debt - four years ago its management refused to fund much-needed modifications to Turn One through traditional means, and staged a Michael Schumacher Fan Fest to raise revenues - and, together with its very successful non-motor racing activities such as rock concerts, would appear to have a sustainable business model in place. Thus, even if ticket sales drop due to the afore-mentioned factors, the circuit would appear to be able to afford costly, i.e. F1, activities.

Interestingly, German Grand Prix host Hockenheim, which, in addition to having suffered huge losses over the past three years, has of late been subject to police investigation, called no such media conference, and at the time of closing for press, the recently-emasculated circuit's management seemed to be keeping their heads well below the parapet.

Having lost an estimated $40m (USD) since major construction work after the 2001 event removed the circuit's unique selling point - high-speed blasts along forested straights - fan numbers have dwindled visibly, and, given the large amount of debt admitted to by the circuit, its continued presence on the FIA calendar must be in doubt.

The Hockenheimring © XPB/LAT

Given, then, that Ecclestone was receptive to a guided tour of Valencia (and the medieval university city's America's Cup base), that Catalunya is highly unlikely to be replaced as Spanish Grand Prix venue, that Germany in the short to medium term seems certain to lose at least one event, and that all indications are that Hockenheim is suffering serious fiscal constraints, the final outcome once the music has stopped could well be:

Hockenheim throws in the F1 towel, relinquishing the rights to the German Grand Prix, which, in turn, go to Nurburgring, in the process opening an opportunity for Spain, for which read Valencia, to gain a second Grand Prix and thus milk the 'Alonso Factor'.

It would be, simplistically put, a matter of history repeating itself, with Spain being substituted for Germany, and Alonso for Schumacher...

The Singapore Grand Prix

If the case for transferring the European Grand Prix to Valencia seems both simple and logical, rumours surrounding a Singaporean Grand Prix are substantially less so, for the Malaysian Grand Prix, held annually at the country's Sepang circuit situated just 300 kilometres north of the tiny island-state, has since its inception in 1999 hardly covered itself in economic glory.

True, Singapore has thriving industries and thus money galore, and is, as most comparisons prove, vastly better organised than its northern neighbour, but, if a Grand Prix in Malaysia does not haul in crowds from outside the region, why should an event on this collection of tiny islands provide better returns on investment? That, though, is for Singapore's politicians to discover as they balance statistics, intangibles, tourist potential and budgets.

Recent local news feeds indicate that there exist some serious intentions to, at the very least, conduct dialogue at ministerial level with the sport's controlling body, the FIA, and Bernie Ecclestone's various companies after.

For their part, the Singaporeans have admitted an interest. As recently as this week Minister for Trade and Industry Lim Hng Kiang admitted that the local tourism Board was "actively looking at this proposal" - but failed to disclose by whom.

Indeed, dialogue may already have taken place, for FIA president Max Mosley is said to have recently told Singapore's Today newspaper that, "Singapore is a vibrant business region with a huge motorsport fan base. If the infrastructure and financial commitment are in place, then it is always possible that Singapore could host a Grand Prix."

Nothing there, of course, to indicate that official approaches have been made to the governing body, but the mere fact that Mosley has commented means somebody, somewhere has asked the question. Equally, the publication quotes Ecclestone as saying he would "positively try to make (a Singapore GP) happen".

Apparently the island state made (unsuccessful) approaches a year ago, but with Formula One's post-2008 regulations permitting up to 20 Grands Prix, Ecclestone is obviously seeking to plug gaps in his schedules. Numerous suspects - South Africa, Russia, Mexico, India and additional Middle East venues - pop up regularly, but of late Singapore seems to be the most mentioned candidate. His advice?

The Singapore skyline © Reuters

"That if somebody in Singapore is interested and wants to be the promoter ... they should contact me and we can start talking about ... what we can do."

Substituting Singapore for Malaysia will not, obviously, increase the number of races on the calendar, so any date granted to the predominantly Chinese territory will need be additional to Malaysia to satisfy Ecclestone's objectives. Unless, of course, the 76-year old hopes Singapore will fill a hole in the calendar left by the Sepang circuit potentially dropping out or being sold, as increasingly incessant rumours indicate could be the case.

Should any such 'talking' progress to feasibility level, then, no doubt, two logical alternatives will be explored: the annual erection of a temporary street circuit, versus construction of a permanent purpose-built race track. Both have their advantages, and both hold the opposite.

Given that Singapore is but 30 kilometres long and 25 wide, into which a population of 4.35m (mid-2005) is somehow squeezed, it stands to reason that land is exceedingly scarce (and prohibitively expensive). With race tracks demanding an average of up to 200 acres (90 hectares), such a project would tax even this wealthy state.

A street track, then, would appear to be the answer, and would immediately place Singapore up there with the three street 'M's: Monaco, Montreal and Melbourne. Imagine the sight of a full field of F1 cars blasting past Singapore's skyscrapers and the Merlion statue. In addition, a street circuit would ensure that Sepang, as a Tilkedrome, suffers less competition - something the Malaysians are said to be (very) afraid of already.

However, a street circuit, by its nature, offers little or no sporting development potential, meaning that any local interest in the sport, which will surely follow a Grand Prix in the territory, will be remain frustrated - or, horror of horrors, entail regular trips to Malaysia.

A Grand Prix in Singapore is a fine idea, and worthy of pursuit - but some questions face the island, with 'Street or Track' being just one, albeit the most important, consideration after the question as to whether the island should embrace Formula One. The decision will not be easy - and a positive outcome could just strike a killer blow against Sepang.