NOVEMBER 18, 2005
FOM and the Malaysian government
It is no secret that some of the Formula 1 race promoters are less than enthused by the demands placed upon them by Formula One Management and that a number of them would happily disappear off and do deals with the F1 manufacturers, as they might then have some chance of making some money out of the events. There are problems in Belgium and elsewhere, nowhere more so than in Malaysia where Malaysia Airport Holdings has been trying to sell the facility as part of its restructuring plan. The country's finance ministry agreed to buy the track two years ago but that sale is currently held up because a contract between FOM and Malaysia Airport Technologies, a wholly owned subsidiary of MAH, requires that the government guarantee the fees which are due to be paid. The government does not wish to do this. The contract goes on until 2010, which leaves plenty of room for the government having to pay up. The track does not make a profit but hopes to one day as more racing activities develop. The race brings in income for the Kuala Lumpur region but this is not as great as had been hoped.
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