Pricing

INTRODUCTION
Formula One- (Formula 1 or F1) - Officially known as the FIA Formula One World Championship, is the highest class of single seater auto racing sanctioned by (FIA) The "formula" designation in the name refers to a set of rules with which all participants' cars must comply The F1 season consists of a series of races, known as Grand Prix(in English, Grand Prizes), held on purpose-built circuits and public roads

AIRTEL GRAND PRIX INDIA

Title Sponsor: Bharti Airtel Other Sponsors: Jaypee Sports India(JPSI) Venue: Buddh International Circuit (Greater Noida, UP) Dates : 28th 30th October, 2011

Construction cost BIC

10-year contract for the race given to Indian construction company Jaypee Sports India(JPSI), a subsidiary of Jaiprakash Associates Core area of the circuit- 4,000 hectares Cost of the circuit- between Rs 12 billion & Rs 15 billion (US$309 million/188 million/216 million, at exchange rates of 21 August 2009)

TICKET PRICING
Prices ranging from Rs. 2,500- 35,000 Differential pricing based on stands and turns on the racing track Capacity of BIC- 1,20,000 No. of tickets to be sold- 1,00,000 7,000 tickets worth Rs.2500 sold out already JSPI expects to garner- 150 Crores from ticket sales

ECONOMIC BENEFITS
Delhi- Lot of infrastructure developments for the 2010 Commonwealth Games However, there has been no direct funding provided for an Indian Grand Prix First mover advantage to the companies supporting the sport The hotel and tourism industry- Immediate boost The country's profile, too, would get a lift Once the Indian Grand Prix kicks off, it has the potential to generate around $170 million in revenue and employ as many as 10,000 people The opportunity in advertising tie-ups between manufacturers & F1

AD INVENTORY- pricing

Official Broadcaster ESPN Star Sports (ESS) Entire advertising inventory- 800 seconds- for the Grand Prix has been sold Sponsors roped in by ESS
Sony, Samsung, Vodafone & Petronas (Sponsors for the entire season) MRF, Shell, BPCL, Tata Motors and Bharti Cellular (Spot buyers)

10-second slots- Around Rs 1.5 lac Though these rates are not comparable with Rs 4 lac it charged for quarter finals and league matches of the ICC Cricket World Cup earlier this year Corporates have made a beeline to purchase spots for the event

COMMUTING EXPENSES

JPSI- Grand Prix bus services running from no. of pick-up points in Delhi, Noida & Gurgaon directly to BIC 'Park and Ride' facility- At a convenient distance from the circuit Car Parking Permit to park in 'Park and Ride' lot can be purchased subject to availability of parking space BIC- Facilitated access to Meru, Easy & Mega Radio Cab services to the circuit Bookings can be done via the internet or customer care numbers Delhi Metro Rail service- Connected to most parts in Delhi, Gurgaon & Noida- A cheap & convenient mode of transport Payment can be made through Credit / Debit cards or cash in Indian currency

F1- TURBO CHARGE TOURISM

F1- Generates interest among Indian F1 enthusiasts and overseas tourists Tour operators- Devising various travel packages Cost of packages is also expected to go up Hilton and Double Tree, Hilton Worldwides two hotels in the vicinity of the F1 venue, have almost full bookings for the F1 weekend

PROMOTING TOURISM
Kingfisher holiday package Official F1 website Tickets only Tickets and holiday

CONTROVERSY
August 10, 2011- Letter to Sports Ministry- One of the conditions for approval to the F1 event- JPSI makes a contribution of Rs 10 Crore/annum to the National Sports Development Fund for the entire duration of the contract (2011 to 2015extendable by another 5 years) To set up sports academies September 14, 2011- Reports in National media about the event being scrapped due to tax issues JSPI- Will pay custom duties, taxes Equipment worth- 150 Crore (INR) Duty- 2% (98% refundable) 8 Crore INR (approx)