Motorsport accepts cancellation

Category: Business News

Date Added: 10 March 2010

MOTORSPORT SA says it understands the Gauteng government’s decision to cancel its international contracts with the sport beyond this year.

STAFF REPORTER

While it was a huge disappointment not to have an event like the World Superbikes on home soil, it supported the government’s stance, Francois Pretorius, MD of the sport’s controlling body in SA, said in a statement.

Economic development MEC Firoz Cachalia announced on Monday the provincial government’s decision to cancel its contracts with the sport beyond this year, thus saving about R700m.

The savings had been reallocated to the provincial treasury.

The remaining two motorsport events scheduled for this year would still be funded by the Gauteng government, he said.

Cachalia said all contracts had been cancelled in an amicable manner to avoid legal action by the motorsport organisations involved.

In the 2008-09 financial year the department spent R167m on hosting rights for motorsport events, and in the 2009-10 financial year R118m was to be spent. Cachalia said the benefits to the province of hosting motorsport events were inflated.

Pretorius said Motorsport SA once again urged promoters to work through and consult the controlling body before entering into commercial agreements with rights holders of international motorsport.

“Motorsport SA was not party to the negotiations, nor has it had sight of the contracts between the parties,” he said.

Pretorius confirmed that a round of the World Superbikes would be held at Kyalami on May 16. Sapa

Source: Business Day