F1 racing event enthuses much less

Despite slashed ticket prices, only 40% of venue capacity at Greater Noida sold

The earlier excitement over the Indian edition of the Formula One (F1) motor race seems to have dimmed, with only 40 per cent of the  available capacity of 100,000 having been sold over the three months  up to the event on Sunday.

The tepid response is despite the organisers, Jaypee Sports International (JPSI), cutting tickets prices for the three-day event by 30-43 per cent in the current season.

“We have sold around 40,000 tickets. All 55 platinum enclosures have been sold out. We are expecting around 65,000 visitors this year,” said an executive aware of the sales.

Ticket prices for the Friday-Sunday spectacle are between Rs 2,000 and Rs 21,000, as against to Rs 3,500-30,000 charged by the organisers in the previous season. Those for the Grand Stand are down as much as 40 per cent at Rs 21,000, when compared with Rs 35,000 charged during the inaugural edition at the Buddh International Circuit in October 2011.

The tag on corporate boxes (platinum enclosures) has come down to Rs 30-70 lakh an enclosure this year from a premium of Rs 35 lakh to Rs 1 crore commanded in the inaugural edition.

Turnout at the race has dropped for consecutive years to an expected 65,000 this year, from 67,000 in 2012 and 95,000 in the initial edition in 2011. JPSI is understood to have clocked revenue of Rs 100 crore and Rs 85 crore from ticket sales in 2011 and 2012, respectively.

The numbers for this year have not been compiled. Ticket sales are the primary source of revenue for the organiser, which has to pay $40 million (Rs 245 crore) annually in hosting the Indian edition of the race, at the circuit in Greater Noida.

The gloom over the poor traction in India and the regulatory issues which have resulted in the country being dropped as a host in 2014  apart, the F1 globally is set to rake record revenue of $2 billion in 2013, according to a report by Formula Money, the segment monitor.

The success of the sporting property has been such that F1 chief Bernie Ecclestone is said to be looking at an Initial Public Offering.

JPSI had built the 5.125 km track at Greater Noida at an investment of $200 million (Rs 1,230 crore). The company had earlier indicated it wanted to break even by 2015.

SC to hear plea against F1

Two days ahead of the Formula 1 race in Greater Noida, a petition seeking to stay the mega event was filed before the Supreme Court, which agreed to hear it on Friday. A bench headed by Chief Justice P Sathasivam, before whom the matter was mentioned, said the plea will be heard tomorrow. The petition has been filed by one Amit Kumar seeking the court’s direction to stay the event.

Was India an under-prepared market for Formula One?

2011: A brand-new $400-mn Buddh International Circuit laid out by Jaypee Sports International, a subsidiary of Jaiprakash Associates, saw a sell-out crowd and was widely considered a success

SPL VISITORS: Michael Schumacher, British actor Rowan Atkinson (who famously plays Mr Bean), co-owners of Force India, Vijay Mallya, Sahara’s Subrata Roy, Sachin Tendulkar

2012: Red Bull Formula One driver Mark Webber led a cricket game with Gautam Gambhir Brands said Formula One was an expensive proposition

2013: Jaypee Sports gets a service tax notice