F1 another ratepayer burden
WHAT is it about major sporting events that make citizens of potential host cities gaga? Cape Town is struggling to amortise the “iconic, white elephant” Cape Town Stadium but is once again considering a bid to host another major event – the F1 street race. The madness continues.
Costs will be significant. It is likely ratepayers will pay for the upgrading of the streets and erection and dismantling of structures and equipment in the week of the race. There will be noise pollution and disruption to traffic and daily business and social life. The effect on quality of life is not factored in the promoter’s calculations but is priceless.
Except spectator fees, revenues accrue to the F1 organisation, FIA, headed by billionaire Bernie Ecclestone who is “working hard to bring the event to South Africa”. However, an article recently in Car magazine says spectator numbers have been declining at traditional fixtures like Silverstone and Nürburgring, and Ecclestone doesn’t care how well events do provided his organisation gets its hosting fee.
Total Sportek website (Jan 2015) said: “In most cases local governments assist race promoters to host a Grand Prix, but hosting is not cheap.”
Excluding other event costs, the average hosting fee is around $40 million a year, escalating for the 7 to 10 year contract. The Albert Park Australia street circuit costs over £600 million for 10 years.
The cost of a building a new F1 circuit – track, pit and paddock, special electronics etc. – is £175m. A street circuit will offer savings but will still be in the hundreds of millions of rands.
Motor racing is a niche sport in South Africa. Aside from the sentimental argument that “Africa is the only continent not to host a F1 race”, why push to have it here again? If spectator numbers are declining at international venues, why would a local event surpass their numbers, especially a street circuit where non-paying viewing is possible from various points along the Sea Point and Green Point circuit. Motorburn website suggests a Cape Town F1 will fail like the Turkish event due to a lack of interest.
The economic benefits are probably thumbsuck, as usual. Like World Cup 2010, profits will not recoup capital, plus interest, and opportunity costs of the outlay.
Media reports imply the decision to host the Cape Town event rests with the City and Green Point Ratepayers’ Association. The latter say they do not object in principle, but who gave them the mandate to decide on behalf of all citizens?
A street circuit is on public property in an urban area with lasting impacts should it proceed. If council, not having learnt the lessons of the World Cup, is seriously considering it then a public participation process must be held in terms of the Municipal Systems Act. This would include not only Atlantic seaboard and Green Point residents, but all citizens who live, work and recreate along or near the proposed route. That’s the majority of Cape Town.
This scheme sounds like wasteful expenditure waiting to happen. Better yet, tell the F1 snake-oil promoters to hitch their wagon and not bother us again. We have a long list of priorities that include shoring up (R40 million a year for no return) repairs to Parow and Uitsig sports facilities, and other issues too numerous to mention.