Malaysia’s Sepang International Circuit (SIC) will host its final Formula One race this year after an agreement was reached to end its contract early.
The Malaysian government and the motor-racing series’ commercial rights holders announced today (Friday) that their hosting agreement will come to an end following this year’s event on October 1.
Malaysia’s Tourism and Culture Minister, Nazri Abdul Aziz, was in November quoted as stating its race deal would not be extended beyond 2018. It earlier emerged that Malaysia was considering ending the hosting of its annual grand prix after its contract ends in 2018 due to falling ticket sales and TV viewership. The SIC has been an annual fixture on the series’ calendar since holding its inaugural race in 1999.
Malaysia’s Prime Minister Najib Razak today said that declining ticket sales, viewership and tourism were behind the decision to end the contract early. “The Cabinet has agreed to end the contract for hosting the Formula One race starting 2018 after considering lowering returns to the country compared to the cost of hosting the championships,” he said in a statement.
State oil and gas company Petronas is the title sponsor of the race, along with holding a similar role with reigning world champion the Mercedes team. Petronas has been hit by falling oil prices, but Najib said its partnership with Mercedes will continue. He added that government funds allocated for the F1 race will be now go towards other motorsport, upgrading SIC and training future Malaysian Formula One drivers.
Sean Bratches, managing director of commercial operations at Formula One, said: “Over nearly two decades, the Malaysian Formula One fans have proven themselves to be some of the sport’s most passionate supporters.
“As we said in Melbourne (at the Australian GP), we have big plans for bringing our global fan base closer to the sport than ever before, providing an enhanced digital experience and creating new events. We’re looking forward to talking more about these plans as the season progresses.
“We will have 21 exciting events to look forward to in the 2018 calendar, with the additions of the French and German races.”
Malaysia and SIC remains firmly committed to the MotoGP motorcycling championship, which has proved more commercially successful for the venue located outside Kuala Lumpur. SIC will continue to stage a MotoGP event until at least 2021 after a new five-year agreement was reached between local organisers and Dorna Sports, the motorcycle-racing series’ commercial rights-holder, in October.
