Khairy: Malaysia should stop hosting F1
F1 is one of the most expensive sports to sponsor, with an average cost per sponsor of between $5 million and $10 million (source: Sports Business Global 2013). However, top sponsors contribute up to $100 million per year.
(MMO) – Malaysia should stop hosting Formula One races as such events cost too much and raked in limited returns, youth and sports minister Khairy Jamaluddin said today.
The minister weighed in the matter on Twitter hours after Sepang International Circuit (SIC) chief executive officer Datuk Ahmad Razlan Ahmad Razali said the fate of F1 events in Malaysia would be decided by this Thursday.
“I think we should stop hosting the F1. At least for a while. Cost too high, returns limited,” Khairy tweeted.
New Straits Times Online quoted Razlan as saying that although SIC had a ‘watertight agreement’ with the license holders until 2018, a special meeting would be held with SIC’s major stakeholder, the Ministry of Finance on the issue of F1’s future.
He reportedly said that F1 ticket sales have on the decline since 2014, and that recent sales only reached between 55 and 60 per cent.
Comparatively, Razlan pointed out that tickets were consistently sold out for Moto GP.
Razlan added that initial reports for the last F1 race showed that it scored the lowest ratings in TV viewership here.
“Maybe it will do Malaysia good to take a break.
“I think the product (F1) is no longer exciting. It’s being dominated by one team,” Razlan was quoted saying.