Important note: Information in this article was accurate in 2004. The state of the art may have changed since the publication date.
Sunday Times (Johannesburg) - November 7, 2004
David Isaacson
But David Gant, SA Grand Prix Bid Company CEO, says even that kind of money is a drop in the ocean compared with the financial benefits of top-flight motor-racing.
The company needs government approval and funding to seal a seven-year deal, starting in 2007, with Bernie Ecclestone's Formula One Management.
Their proposal is that national, provincial and local governments buy a joint 20% stake - about R100-million - in the envisaged public-private partnership, which would build a track near the Mother City airport. Then, it seems, they need only sit back and wait for the money to roll in.
Apart from dividends, government would also get income tax and VAT from the company, which Gant estimates would total almost R1-billion over the seven years.
"Our first round of talks with all three levels of government indicated political will and the potential of real financial commitment," said Gant, adding they had already secured about R200-million in capital from the private sector.
"However, our attempts at engaging in a second round of talks [with government] have not been very successful."
Each Grand Prix would bring in R1-billion annually through tourism. Indirect financial spin-offs include creating thousands of jobs and generating R1.8-billion in industrial property development near the track, he said.
While Gant is confident of convincing government of the figures, the bid committee may have a harder time persuading them to allow an exemption on anti-tobacco advertising legislation for the three days of the event each year.
However, he said half of the F1 teams don't have cigarette sponsorships and three Grands Prix on the annual calendar are already tobacco-free.
There would also be social benefits, such as using the track's medical facilities as a clinic for nearby communities.
"We will also divert revenue for Aids awareness and anti-drug abuse programmes and the Drive Alive campaign," said Gant.
Denver Hendricks, director-general of Sport and Recreation SA, said the matter had been referred to the ministry of trade and industry because sport did not "have access to that kind of budget".
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