With the night race event organisers still up in the air about whether to extend its current contract to host the race beyond its current 2012 contract deadline, it turns out that the event is still contractually bound to host at least for more Grands Prix even if it doesn’t extend the deal.
It turns out that Bernie Ecclestone’s Formula One Administration (the group that secures all hosting venues for Formula 1) has a five-year option to extend the deal irrespective of Singapore’s wishes, meaning that if the option was exercised immediately, then the metropolis country will continue hosting duties until at least 2014.
Failing that, it will have to heavily compensate FOA to the tune of its hosting rights fees it pays to Ecclestone’s company, which is believed to be in the region of $40 million per race.
The matter was addressed in Singapore’s parliament yesterday, with the nation’s Trade & Industry Minister, Lim Hng Kiang, stating that the government’s decision to continue with hosting a Formula 1 race “will be based on an assessment of the costs and benefits to the economy over the long term”.
The outcome of the review may not be known for up to a year.
[Original image via Boston.com]