The Hindu : Sport : IOA resumes pursuit of the F-1 dream

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Friday, Jun 15, 2007
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IOA resumes pursuit of the F-1 dream

Special Correspondent

F-1 supremo Bernie Ecclestone talks of the possibility in a letter to the IOA

NEW DELHI: Apparently not satisfied with the bidding spree that has characterised its recent functioning and obviously disheartened by the failure to get the right to host the 2014 Asian Games, the Indian Olympic Association (IOA) has joined the race to host a Formula 1 event in Delhi in 2009.

Unlike the periodic buzz that is generated when Formula 1 CEO Bernie Ecclestone starts discussing possibilities of organising a Grand Prix event in India — like it was when Hyderabad, Mumbai and Bangalore were earlier mentioned as potential venues — the IOA has, this time, managed a letter from the F1 boss. The event, if it materialises, would be part of the FIA Formula One World championship.

A visibly elated IOA President Suresh Kalmadi announced, after an Executive Council meeting on Thursday, that the IOA was trying to raise revenue to fund Olympic sports in this country by collaborating with the Formula One Administration (FOA).

Mr. Ecclestone's letter starts with "Formula 1 Grand Prix of India subject to contract."

It ends with, "This letter does not constitute an offer capable of acceptance, nor is it intended to create legally binding relations."

Questionable spin?

However, Mr. Kalmadi termed the letter as an MoU (memorandum of understanding).

According to the letter, the IOA would be expected to get the infrastructure ready, get the support of governments and governmental agencies, construct a circuit at a site that would be acceptable to FOA and would promote the event and raise the funds required through government or private sources.

"The IOA will promote the first event in 2009."

The IOA would be expected to sign a contract with FOA, on commercial terms "satisfactory to FOA" and with APM Sport (Ireland) Ltd, an affiliate of FOA, regarding circuit rights (trackside advertising, event title sponsorship, hospitality, event merchandising etc).

These formalities, along with a letter of credit to FOA by way of security for payments, would be expected to be completed by September 30, 2007.

Asked whether the IOA would consult the Federation of Motor Sports Clubs of India (FMSCI) and the Motorsports Association of India (MAI), Mr. Kalmadi said, "we will involve everybody."

It was FMSCI Chairman Vijay Mallya who last mooted the idea of an F1 event in Delhi when he met the Chief Minister, Sheila Dikshit, along with Formula 1 driver Ralf Schumacher last March. At that time, the possibility of a street circuit, around Rajpath, like the one in Monaco, was mentioned.

Mr. Kalmadi expects the "surplus" from the F1 event to go to Olympic sports in India. He and the rest of the IOA, in fact, firmly believe that Olympic sport in the country, quite often starved of funds, can stand on its own legs through funding from F1. Whether such an arrangement would be possible is to be seen only, if at all the IOA dream comes through.

Asked why the IOA should jump into a venture like this at a time when it would do well to concentrate on the job of hosting the 2010 Commonwealth Games here, Mr. Kalmadi said that he had an able team under him that could look into this task also. He saw this as a build-up towards the Commonwealth Games. He said that "two-three places" for the racing track had already been spotted by the IOA.

Mr. Kalmadi would not go into the source of funds he was expecting nor about the financial guarantees that FOA could be demanding.

Just to provide an idea about the costs, the Shanghai (China) international circuit that started hosting an F1 event from 2004, cost more than $317 million (approximately Rs. 1,300 crore).

A committee comprising the IOA Secretary-General Randhir Singh, Vice President V.K. Malhotra, Treasurer A.K. Mattoo, and the Commonwealth Games organising committee Secretary-General Lalit K. Bhanot has been formed to pursue the F1 project.

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