Singapore’s inclusion in 2018 F1 calendar does not mean deal sealed: Experts

SINGAPORE — It may have been listed as one of the 21 stops on the 2018 Formula 1 race calendar, but that does not mean that the Singapore government and F1 owners Liberty Media have come to an agreement on a new contract extension for the Singapore Grand Prix (SGP).

This was the general consensus among industry experts and observers when asked by TODAY this past week about Singapore’s inclusion in next year’s F1 schedule.

However, they were also optimistic that a deal will eventually be agreed upon.

Media reports on the 2018 calendar this past week had noted the Republic’s presence in the list of stops released by F1, although the Sept 16 date also came with the note “subject to confirmation by rights holders”.

First staged in 2008, this year’s race is the last of Singapore’s current five-year deal with F1 but negotiations for a renewal are currently underway with new owners Liberty Media.

When contacted by TODAY, race promoter Singapore GP told TODAY they were “unable to comment” as discussions are still ongoing.

Similarly, a Ministry of Trade and Industry spokesman said to this paper: “Negotiations for the term renewal for F1 is ongoing and a decision has not been reached. More details will be shared when ready.”

Corporate lawyer Anthony Indaimo, a partner at international commercial law firm Withers KhattarWong, told TODAY that it is “too early” to gauge the status of negotiations based on the first release of the calendar.

“There are many issues and interests to address when negotiating or re-negotiating these types of long-term contracts especially where public-private partnerships are involved,” noted Mr Indaimo, who has been a leading adviser to motorsports teams, sponsors and investors for over 25 years.

“If history is any guide to what may happen, the negotiations involving various other host races, such as Silverstone and Monza, had been intense, complex and protracted. In some cases, they were only concluded at the last minute.”

A business analyst, who declined to be named due to potential sensitivity issues, noted that the perspectives on the status of the Singapore race have two extremes.

“Here, this is being presented as a positive sign, but interestingly in Europe, the media are reporting this as a bad sign for Singapore,” he told TODAY.

“The fact it says ‘provisional’ shows that a deal is still not done and that the longer it drags on, the less likely it becomes as F1 needs to fill the calendar with confirmed dates sooner rather than later.”

Significantly though, new Formula One group chairman and chief executive officer Chase Carey has publicy expressed his confidence at reaching an agreement with Singapore and China, the only other stop with the same caveat.

“We’re engaged with them,” Carey was reported as saying at the FIA Sport Conference on Tuesday in Geneva.

“We’re negotiating new agreements, we’re having good, constructive discussions and expect to get there… We wouldn’t have put it (the calendar) out if we didn’t expect it to be 21 (races), but the reality is we don’t have a completed agreement.”

British veteran F1 journalist Joe Saward of the e-magazine GP+, who has attended every Grand Prix since 1988, praised the SGP as a “terrific event” and fully expects Singapore to commit to a renewal.

“It has done wonders for Singapore’s international exposure and tourism (and) it has been great for F1 as well,” he told TODAY.

“Singapore has been put on the calendar because F1 wants the race to continue and they expect Singapore to agree to a deal because it is in the interest of the city to continue to use F1 to publicise its charms.

“Losing Singapore would be a blow for F1, but one senses it would be a bigger blow for Singapore.

“I would be shocked if the government did not agree a deal. If the public-private arrangement needs to be altered, then I expect the government to find a way to make it happen.

“They just need to find a deal which everyone is comfortable with for the future.”

The sports analyst who declined to be named believes it’s “still about both parties wanting to do a deal at what they believe is the right price for them and a gap between those positions”, adding that he also expects a renewal as “Singapore remains a priority for Liberty and their sponsors”.

Mr Indaimo agreed, noting that F1 has been on a “listening tour” to obtain feedback from fans, drivers, teams and sponsors, and the SGP is highly regarded.

He said it would be a “great shame” if it was to lose its spot as a F1 host city.

“In many ways, Singapore represents a new and innovative model in terms of building tourism, music, food, events etc. around a F1 GP,” he explained.

“Combined with the country’s reputation as the asset management capital of Asia, it also means there are meaningful opportunities to mix business around and with motor racing, given that most successful people share a passion for competitive sport.”

“This, together with the organisational precision and collaborative partnership that Singapore is synonymous for when dealing with foreign businesses investing in Singapore, makes Singapore a natural choice for hosting such a showcase spectacle in Asia.”