$71 million fee for ex-F1 grand prix to return, "it is very hard to get it back"

The head of the Sepang International Circuit has admitted that Malaysia made a “mistake” by pulling the plug on its annual Formula 1 race.

Sepang kickstarted the wave of modern grand prix venues in Asia, hosting its inaugural race in 1999 just outside Kuala Lumpur. It remained on the calendar until 2017, when the event was dropped amid rising hosting costs and diminishing returns.

Malaysia's exit coincided with Liberty Media’s takeover of F1, which has since propelled the series to record global popularity, with many venues now recording sell-out crowds after years of poor attendance.

$71 million price-tag to join F1 again

Sepang CEO Azhan Shafriman Hanif believes the Malaysian GP should have never been axed, especially with F1’s popularity now making it incredibly difficult to regain a spot on the calendar.

"We do not want to repeat the mistakes of the past,” Shafriman was quoted by the New Strait Times. We let Formula One go and now it is very hard to get it back. I hope we don't make the same mistake with MotoGP.

"There is a waiting list to get back in (for Formula One) and of course, the costs are very expensive. We were quoted US$70 million race fees (by owners Liberty Media).

"That is for each event (edition of Malaysian GP). That does not include our setup costs which are in the region of RM10 to RM20 million for each event.

"In total, it would cost us more than RM300 million ($71 million) to bring back the race (annually).

"A lot of people (countries) are queuing so it won't be easy. But if we are really serious about it, then maybe we can start the conversation."

Sepang hosts successful MotoGP race

Following F1’s exit, MotoGP has become the flagship event for the Sepang circuit, with this year’s race scheduled on 26 October.

Sepang’s contract with Dorna Sports expires after 2026, and the circuit is keen on signing a fresh contract that will secure the future of the race till the late 2020s.

Shafriman also revealed that there is also a mutual desire between the circuit, authorities and local businesses to bring F1 back to Malaysia, pointing to the success of the Singapore Grand Prix as proof of the series’ economic impact.

"It is not just SIC that wants Formula One. Many other stakeholders from both the government as well as the corporate sector also want it back," said Shafriman.

"We have to look at how Singapore is hosting it. They have everyone on board in making it a success, from the ministries to the corporate sector to the hotels. Everybody contributes.

"It has to be like that if we bring it back here."

Shafriman warned that turning an F1 race profitable for the community is a time-consuming process.

"It will take time. Even with MotoGP, it took time for us to increase the ROI," said Shafriman.

"The important thing is that everyone (stakeholders) comes together.

"All this while people view MotoGP and Formula One as SIC's events, when they are actually national events.

"We are at the forefront in terms of managing the thing, branding and so on, but essentially they are Malaysian events."