MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

Formula 1 Funding Model

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Dear Editor

As a self-confessed cynic of our 30 year old governing cartel cum government of national unity [GNU], whose current governance ripple effects were seemingly blue-printed during the Convention for a Democratic South Africa [CODESA] horse-trading negotiations; I am of the belief that politicians, charlatans and/or opportunists must largely hold a ceremonial stake in the proposed hosting of Formula 1 races in South Africa [Nathan Swarts, Action SA branch chair, The Herald 23 December 2024 referral]; the exaggerated R2bn funding thereof from the public purse being an insulting misnomer to boot.

Real motorsport technocrats and enthusiasts should have the executive overview and strategies in the hosting groundwork of F1 in South Africa; especially its funding model. First things first, I am still behind the nowadays lukewarm Cape Town bid as in my personal hashtag #CapeTownOrNoF1, since Gautengers tend to arrogate themselves into being the cat’s whiskers when it comes to the entire African continent’s financial muscle, as in the naive and albeit condescending propaganda regarding their poseur little Switzerland within Africa called Sandton with the vain and delusional tag line: The Richest Square Mile In Africa; wherein anything & everything must be enforced into happening.

The Cape Town bid will, however, need some tweaking here and there too, as the harebrained idea of racing through the Green Point Stadium as part of the Cape Town bid won’t wash with the F.I.A as the said organisation’s executives regard Formula 1 as their crown jewel of motorsport and not a mere cars & chassis circus.

Formula 1 partners like Allianz, Heineken, Pirelli, TAG-Heuer, GULF Oil, Rolex, Petronas, Oracle, AT&T, Dell, T-Mobile etc. can take the majority tab of funding the South Africa Formula 1 races; with crowdfunding from our homegrown deep pockets & supporters balancing the monetary scales in the long run.

Telecommunications companies like American Telephone & Telegraph [AT&T], Orange and/or Germany’s T-Mobile can even buy a large portion of Telkom shares as leverage into the Pan African Telecoms Market through the co-funding of F1 in Africa, let alone Allianz being an alternative to our already saturated insurer market for South African Mobility as in Road, Air, Rail & Sea transportation; not forgetting the buying and renaming of Gqeberha’s Nelson Mandela Bay Stadium to a distinctively Allianz Arena Africa [AAA] as in A³ or 3A for short.

Regards

Luyanda Marlon Kama
Kwa-Dwesi, Gqeberha.

Joe McGluwa MP, DA Spokesperson on Sport, Arts and Culture, had this to say about the Formula 1 Bid:

The DA welcomes the announcement by the Minister of Sport, Arts and Culture, Gayton McKenzie regarding the formation of South Africa’s bid steering committee (BSC), the committee will manage the process of bidding to host Formula 1.

As one of many passionate Formula 1 fans, I, Joe McGluwa, recognise the excitement and opportunities such an event could bring to our country

South Africa has a proud history of hosting F1 events, which continued until the early 1990s before the Kyalami circuit ceased hosting races. Bringing this iconic sport back to African soil would be a significant achievement, but it cannot simply be viewed as a project benefiting a select few.

The Democratic Alliance (DA) will keep a close eye on the tender and bidding processes and ensure that it’s open, transparent, and accessible to all interested parties. Detailed bidding documents must be made publicly available, and the government must play an active role in ensuring that this event delivers benefits beyond just Formula 1 itself.

We also call on the bidding committee to consider all suitable race tracks and bidders from all provinces.

We will also request that the Portfolio Committee on Sport, Arts, and Culture invites the Minister to provide Parliament with a detailed briefing on the negotiations and discussions related to hosting this major event. Such oversight is a standard protocol to ensure that public funds and interests are safeguarded.

This is not just about hosting a race; it’s about tourism, job creation, economic growth, infrastructure development, transport, funding, sponsorships, and broader social and economic benefits.

The DA will demand a thorough impact assessment of the event, focusing on its long-term legacy and financial benefits. For us, it is about creating sustainable jobs and driving inclusive economic growth. An event of this magnitude requires careful planning, extensive stakeholder engagement, and coordinated efforts to ensure that it delivers tangible benefits to all South Africans.

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