South Korea to compensate for axed GP
Organisers failed to host race in 2014 and have backed out of 2015 calendar
The organising committee, comprised of officials from the South Jeolla provincial government and others, failed to host the race in 2014 and backed out of the 2015 calendar, citing financial problems. PHOTO: AFP
SEOUL:
Organisers of the axed South Korean Grand Prix are facing breach-of-contract demands from Formula One's commercial operators that could run into tens of millions of dollars.
The organising committee, comprised of officials from the South Jeolla provincial government and others, failed to host the race in 2014 and backed out of the 2015 calendar, citing financial problems.
A senior committee official said on Wednesday that Formula One Management (FOM) had sent a formal notification that failure to open a banking letter of credit needed to host the 2015 event had constituted a ‘grave breach’ of contract. "We plan to visit London for talks with the FOM," said the official.
According to media reports, the contractual penalty for not holding the 2015 event involves payment of twice the annual $43 million licence fee.
"We cannot reveal the amount of compensation demanded by FOM," said the official, while adding that it was only a ‘fraction’ of the $86 million maximum.
Like Sports on Facebook, follow @ETribuneSports on Twitter to stay informed and join in the conversation.
Organisers of the axed South Korean Grand Prix are facing breach-of-contract demands from Formula One's commercial operators that could run into tens of millions of dollars.
The organising committee, comprised of officials from the South Jeolla provincial government and others, failed to host the race in 2014 and backed out of the 2015 calendar, citing financial problems.
A senior committee official said on Wednesday that Formula One Management (FOM) had sent a formal notification that failure to open a banking letter of credit needed to host the 2015 event had constituted a ‘grave breach’ of contract. "We plan to visit London for talks with the FOM," said the official.
According to media reports, the contractual penalty for not holding the 2015 event involves payment of twice the annual $43 million licence fee.
"We cannot reveal the amount of compensation demanded by FOM," said the official, while adding that it was only a ‘fraction’ of the $86 million maximum.
Like Sports on Facebook, follow @ETribuneSports on Twitter to stay informed and join in the conversation.