Talks for New F1 Deal Gets Tougher

After negotiating Singapore’s current Formula One deal, Bernie Ecclestone said in 2012 the hardest thing was clarifying to the authorities that “we don’t race for free”. Even four years down the road, the F1 boss appears to be frustrated again as he tries to keep one of the glitziest races on the event calendar after the contract expires in 2017.
Negotiations are taking place in a time when the city-state is considering whether the event makes financial sense or not. With Singapore’s tourism industry progressively diversified, a stronger country brand than when it first hosted the event in 2008 and other major sporting events in the bag, Singapore seems to have the upper hand in talks with F1.

F1’s new owners US cable TV mogul John Malone’s Liberty Media, face a new threat with Malaysia pulling out of a new deal, they could altogether lose their entire presence in Southeast Asia. F1's 86-year-old commercial supremo first told German magazine Auto Motor und Sport that Singapore does not want to host F1 anymore, then explained he did not want to lose Singapore. His commentaries suggest discussions getting tougher.
"I think Singapore has come in and negotiated hard and has realised they are in a position of strength to do so," said James Walton, head of the Sports Business service line at Deloitte Singapore and Southeast Asia. "This is one of the top ranked grand prix ... and one of the markets that the key sponsors of F1 are most interested in."
Singapore's government funds 60 percent of the S$150 million ($105.13 million) it costs to host the race each year. Analysts say the city-state is weighing the costs, and benefits, of staging the event in the future. Singapore GP, the event's organiser, said it would not comment on “ongoing commercial negotiations". A decision is projected before year-end, Ecclestone has said.