M'sia may face legal implications
Published on: Wednesday, October 26, 2016
Kuala Lumpur: Malaysia may face legal implications if the Formula One is scrapped before the contract expires said Sepang International Circuit (SIC) chief executive officer Datuk Razlan Razali.In denying claims that Malaysia would scrap the prospect of hosting the F1 race, Razlan said SIC had a contract with the organisers of F1 until 2018 and cannot be terminated easily."It will involve legal issues if the SIC breach the contract which was signed last year and runs through 2018. SIC will review the host job when the contract expires in 2018 but the race will certainly be held next year," he said Tuesday.
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Local media reports claimed that the Malaysian F1 Grand Prix at the Sepang International Circuit may be scrapped. Malaysia have been hosting the F1 since 1999.Meanwhile, Malaysian F1 Grand Prix main sponsor, Petronas are also expected to review their sponsorship pledge with SIC and Formula One Management (FOM) with regard to Malaysia hosting the F1.Petronas Group Strategic Communications Senior General Manager Rizan Ismail said Petronas has not received any information about such an issue from the FOM or SIC.
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"Well for us, obviously we will listen to the decision, Petronas contract is with the FOM, so that is something SIC and FOM have to come up with. Once we have come to a decision, I'm sure we will inform the relevant parties, review it and take further action," he told reporters Petronas Talent Development Programme in Petaling Jaya, Tuesday.It was earlier reported that Malaysia was planning to take a "temporary break" from Formula One because of mounting losses, officials said on Tuesday, in ominous signs for one of Asia's longest-running grands prix.
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Officials are due to meet this week to discuss the future of the Malaysian Grand Prix after its current contract expires in 2018."The locals are not buying the tickets to watch F1," Razlan was reported as saying by AFP. "If there is no economic value, why should we continue? We better take a temporary break." Falling ticket sales and ebbing TV viewership have sapped enthusiasm for the race, which has been held at the Sepang circuit near Kuala Lumpur since 1999.It has become overshadowed by the glittering night grand prix in neighbouring Singapore, while Malaysia is also in the grip of political and economic problems.Formula One races are often run at a loss but they are attractive to many cities because of their prestige and exposure to global audiences.Razlan said Sepang, which can accommodate 120,000 fans, drew just 45,000 to last month's grand prix, and added that race-day TV ratings were also poor. He noted that hosting F1 is "very expensive."In comments on Twitter, Sports Minister Khairy Jamaluddin said competition from other events outside of Malaysia was also taking its toll.Stay up-to-date by following Daily Express’s Telegram channel.
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