Korean F1 Grand Prix Organizers Look For Ways To Cut Losses From Event
Organizers of the Korean F1 Grand Prix "face the monumental task of plugging a gaping hole in its bottom line and turning its finances around," according to Jung Min-ho of the KOREA TIMES. Two of the race's main sponsors have "pulled out, with the deficit estimated to reach 30B won ($27M)." Last year, the race lost 60B won ($54M). The contract to hold the F1 competition is until '16, but "it appears to be a toss-up whether it will make ends meet, let alone turn a profit." The organizing committee did not have any positive answers, but one of its senior officials defended the grand prix by saying its "long-term effects are more important than its bottom line." Korean F1 Grand Prix Organizing Committee Secretary General Park Jong-moon said, "Having worked in the sports industry for more than 30 years, I learned that operating a big sports event at a loss is inevitable. Even the 1988 Seoul Olympics was a money-losing event. It is worthwhile, considering other effects that were far greater than profit" (KOREA TIMES, 10/7).