South Africa one step closer to hosting F1
South Africa has the backing of the private sector, should the country get the green light to host the Formula One Grand Prix.
South Africa's private sector has committed to funding the estimated R2.1 billion licence fee the country will require if it gets approval to host the Formula One Grand Prix in 2027.
Sport, Arts and Culture Minister Gayton McKenzie said that the department had submitted its bid to host the prestigious sport to Formula One Management (FOM).
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He added that his department submitted "more than what was asked for."
“F1 asked for 10 things, we have done 15. We are ready. None of the other African countries bidding has a track … We have the sponsors, the track, and the money,” McKenzie said.
According to The Sunday Times, he added that the bid was "hugely attractive for F1 to come to Africa."
McKenzie reportedly approached 203 CEOs asking for their assistance with the funding. He noted that seven companies had signed on, among them a bank, a telecommunications provider, and a group involved in gambling and hospitality. Each had committed at least R100 million.
The companies would only be disclosed if South Africa secured the licence, which was estimated to cost between $35 million (R600 million) and $40 million annually. Under Formula One Management’s requirement of a three-year contract—priced at $40 million per year—the total expense would amount to roughly R2.1 billion at the current exchange rate.
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Although Cabinet approved the Department of Sport’s proposal to bid for hosting rights at Kyalami in 2027, McKenzie stressed that President Cyril Ramaphosa had been unequivocal that public funds would not be used.
“Don’t even think about asking me,” McKenzie quoted Ramaphosa as saying.
The potential return of Formula 1 to South Africa would be welcomed by fans across the country, many of whom currently rely on pay-TV broadcasts each weekend to experience the sport’s high-speed excitement.
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Image: AFP