Bahrain to decide F1 ticket prices for Malaysia race: Sepang chief

SEPANG – The Bahrain government will determine Formula One ticket prices and keep ticket sales revenue for its one-off race at Sepang in October, said Sepang International Circuit (SIC) chief executive officer Azhan Shafriman Hanif.

He said SIC was still negotiating with Bahrain to secure more affordable ticket prices for Malaysians, but stressed that the final decision rests with Bahrain.

“All the ticket sales revenue will go back to Bahrain, so we don’t have the absolute power to determine certain things,” Azhan told reporters at a media session at Sepang on July 28.

“I will try my best to negotiate for a special price, maybe a MyKad price for Malaysians, but the final decision is with Bahrain because they are paying the rights fee.”

Azhan also clarified that while Bahrain is paying the F1 hosting rights fee, SIC will share operational costs with Bahrain, including track preparation and event staging.

He said the operational cost is estimated at about RM40 million (S$12.7 million), excluding the hosting rights fee.

“We are looking at a ballpark figure of about RM40 million to be shared between SIC and Bahrain,” he said.

He added that the rights fee alone was estimated to cost between US$70 million (S$90.5 million) and US$80 million, with the overall cost of hosting the event potentially exceeding RM300 million.

However, Azhan said the expenditure must be viewed alongside the wider economic returns expected from hosting F1.

“Looking at the total picture, we have to look at the spillover effect. From reports of countries that host Formula One, they can get more than three times the value,” he said.

“This means Malaysia has the potential to gain more than RM1 billion in economic impact.”

Azhan said F1 representatives had conducted an initial inspection of the Sepang circuit and found no major issues preventing it from hosting the race.

He said the circuit would not require resurfacing, although several upgrades, including improvements to run-off areas and infrastructure, would be completed ahead of the Oct 2 to 4 event.

With only about two months before the race, he said that preparations were being carried out around the clock to meet F1 requirements.

Azhan also expects the race to generate significantly greater economic benefits than when Malaysia previously hosted a grand prix, citing the sport’s rapid global growth under Liberty Media.

“In the past, we had to work hard to sell tickets. Today, Formula One has built a huge global fan base and created a fear of missing out,” he said.

“Since the announcement, we’ve received inquiries on sponsorships, festivals and commercial activities. It’s a good problem to have.”

He said F1’s popularity today would translate into stronger tourism, business opportunities and economic spillover for Malaysia.

However, Azhan stressed that SIC remains focused on successfully delivering the one-off event before considering any long-term return of F1 to Malaysia.

He said any future bid would depend on the government’s willingness to fund hosting rights and the availability of a slot on the F1 calendar.

“We’ll focus on delivering this event first,” he said. “If we gain the confidence of all stakeholders and produce something special, then perhaps we can look at the future.” THE STAR/ASIA NEWS NETWORK