F1's exorbitant $355M race fee sabotages iconic track's return to the calendar

F1 has lost out on a potential return to one of its most iconic circuits because of the exorbitant costs to the host country. On Thursday, August 21, Malaysia, which hosted the Malaysian Grand Prix at the Sepang International Circuit from 1999 to 2017, ruled out the pinnacle of motorsport's return.

During the Dewan Rakyat sitting, Youth and Sports Minister Hannah Yeoh shared that hosting an F1 race would cost them RM300 million (~ $71 million) annually. With the Liberty Media-owned series requiring a five-year commitment, Malaysia would have to shell out RM1.5 billion or approximately $355 million.

"Generally, Malaysia would need to sign a hosting contract for three to five years with Liberty Media, which would involve a commitment of around RM1.5 billion in hosting fees over that period," Yeoh said via Sinar Daily.

She also highlighted that the costs of preparing the Sepang International Circuit, which is an FIA Grade 1 circuit, would require an additional RM10 million (~ $2.37 million) annually to ensure the highest standards of safety and supporting facilities. Instead, Malaysia could spend the same amount of money to implement and grow 20 sports.

"For example, with such an allocation, we could implement 20 sports involving 363 podium athletes and 9,834 talent development athletes at a total cost of RM124 million per year," Hannah Yeoh added.

The Malaysian Grand Prix was a staple on the F1 calendar between 1999 and 2017. However, with the series' high hosting costs and disappointing ticket sales, the Malaysian government, which used to fund the race, pulled the plug on it.

Ferrari was the most successful team at Sepang with seven race wins, while Sebastian Vettel led the driver list with four wins. Reigning F1 champion Max Verstappen won the last iteration of the Malaysian GP in 2017, securing his second career victory.

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Why letting F1 go was a mistake on Malaysia's part

Malaysian F1 Grand Prix (Race Day) - Source: Getty

Sepang International Circuit (SIC) Chief Executive Officer Azhan Shafriman Hanif recently disapproved of the government's decision to let F1 leave in 2017. He shared that many important stakeholders from the government want the race back, but with the sport's booming popularity, the waiting list to join the calendar has gotten longer.

"It is not just SIC that wants Formula One. Many other stakeholders from both the government as well as the corporate sector also want it back. We have to look at how Singapore is hosting it. They have everyone on board in making it a success, from the ministries to the corporate sector to the hotels. Everybody contributes. It has to be like that if we bring it back here," Shafriman said via NST.

Shafriman also explained that it would take a few years before the Malaysian GP turns profitable for the organizers.

"It will take time. Even with MotoGP, it took time for us to increase the ROI. The important thing is that everyone (stakeholders) comes together," he added.

F1 currently has three Asian races on its calendar - the Japanese GP (at Suzuka), the Chinese GP (in Shanghai), and the Singapore GP (at Marina Bay).