Indian GP to ‘break even in four years’

Indian Grand Prix organisers said they hoped to break even within four years and were talking to MotoGP and other race series in a bid to make up for their limited profits from Formula One.

The private Jaypee infrastructure group revealed the plans as other grand prix organisers struggle, including South Korea which is trying to renegotiate its Formula One contract just a year after its debut.

Jaypee spent $200 million building Buddh International Circuit and another $200 million on their Formula One licence fee, spokesman Askari Zaidi told AFP.

He said the Formula One profits were confined largely to ticket sales as revenues from sponsorship and broadcast rights were controlled by the sport.

But the company will also profit from building and selling houses and commercial space on a large new development around the track, known as Jaypee Greens Sports City.

“In Formula One there’s not much scope to make money barring the sale of tickets but there are other races which we’re planning to hold, like MotoGP, and some other race organisations have contacted us,” Zaidi said.

“So whatever we spend we hope to recover in four years.”

Zaidi said Jaypee’s agreement with the government was to fill 35 per cent of the 2,500-acre site near New Delhi with sports facilities including a 100,000-seat cricket stadium, a golf course and a shooting range.

“The rest we can develop and sell as commercial space or houses.

“That’s how we intend to recover the money,” he said.