Decision on F1 racing deal could come Sunday
A go-ahead will put S'pore on world motor racing map
By SAMUEL EE
(SINGAPORE) Singaporeans, get ready to start your engines. After
years of waiting, you could know as early as this weekend whether
you are going to get your own Formula One motor race.
Mr Ong: Had talks with Formula One Management supremo Bernie
Ecclestone
Formula One Management (FOM) supremo Bernie Ecclestone, who stopped
off here en route to the season's first F1 race in Melbourne this
Sunday, may say when he gets Down Under that a draft deal has been
reached to hold a race in Singapore.
Mr Ecclestone had talks with local property tycoon Ong Beng Seng.
The deal is not in the bag yet but sources say key people working
for Mr Ong are already in Melbourne working on the fine
print.
If Mr Ecclestone does announce a Singapore race to the world media
gathered there for this Sunday's event, it would catapult Singapore
to the world motor racing stage.
Under a draft deal, the rights to host an F1 race here for seven
years from next year could be awarded by FOM.
It is understood that a stumbling block could be the upfront
'sanction' fee required by FOM - the amount paid for the right to
stage an F1 race. Apparently, the total fee for all seven years is
being sought - and it is rumoured to be around US$250
million.
Mr Ecclestone, who arrived in Singapore on Monday night, is said to
be seeking a guarantee from the Singapore government rather than
from Mr Ong, who bid for the rights in his personal capacity and
not with his listed HPL group. Despite not being involved in the F1
bid, HPL shares yesterday closed 32 cents higher at $4.52.
Parliament was told last week that the government is willing to
provide financial and other support for any venture staging an F1
event here. It is keen to pick up half the tab, which is crucial
because a typical race weekend can cost anything from US$70 million
to US$75 million, including the sanction fee and organising
costs.
Besides Mr Ong, SUTL Group's Arthur Tay - best known as the
developer of the luxury marina at Sentosa Cove - has been linked to
the F1 bid.
At one point in discussions with FOM, Mr Ong and Mr Tay were said
to have considered joining forces to put forward a combined
proposal. But it has now turned out that Mr Ong is the front-runner
in the race to the chequered flag.