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Pricing 

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INTRODUCTION

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Formula One- (Formula 1 or F1) - Officiallyknown as the FIA Formula One WorldChampionship, is the highest class of singleseater auto racing sanctioned by (FIA)

• The "formula" designation in the name refersto 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, GrandPrizes), held on purpose-built circuits andpublic roads

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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

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Construction cost BIC

•10-year contract for the race given to Indianconstruction company Jaypee SportsIndia(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/€216million, at exchange rates of 21 August 2009)

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TICKET PRICING

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Prices ranging from Rs. 2,500- 35,000•Differential pricing based on stands and turnson 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 ticketsales

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ECONOMIC BENEFITS

• Delhi- Lot of infrastructure developments for the 2010Commonwealth Games However, there has been no directfunding 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 togenerate around $170 million in revenue and employ as many as

10,000 people

• The opportunity in advertising tie-ups between manufacturers& F1

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AD INVENTORY- pricing

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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 WorldCup earlier this year

• Corporates have made a beeline to purchase spots for the event

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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 inIndian currency

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F1- TURBO CHARGE 

TOURISM

• F1- Generates interest among Indian F1 enthusiastsand overseas’ tourists 

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Tour operators- Devising various travel packages• Cost of packages is also expected to go up

• Hilton and Double Tree, Hilton Worldwide’s twohotels in the vicinity of the F1 venue, have almost full

bookings for the F1 weekend

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Kingfisher holiday package• Official F1 website

Tickets only

Tickets and holiday

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PROMOTING TOURISM

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CONTROVERSY 

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August 10, 2011- Letter to Sports Ministry- One of theconditions for approval to the F1 event- JPSI makes a“contribution” of Rs 10 Crore/annum to the National SportsDevelopment 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 theevent 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)

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