Analysis: The prospect of a South African Grand Prix return
New Formula 1 boss Stefano Domenicali has joined the chorus of calls for Formula 1 to return to South Africa, more precisely Kyalami. Speaking in broad terms on his ideas on shaking the sport up in his new role as F1 CEO, the former Ferrari team boss and more recently Lamborghini CEO admitted that an African race is high on the agenda. “There are countries that have shown interest in Formula 1; one of them being South Africa,” Domenicali confirmed. “This is something very important having new places and old places that have a great heritage in Formula 1. We need to decide what is the right balance for the number of races, to see what areas we need for strategic interests, for team interests, for broadcaster interests, for media interests and decide what will be the right way to go.”
Domenicali’s hints are only the most recent in the perennial story of a South African Grand Prix return. Most recently it was Lewis Hamilton on the blower a year ago in response to where he would like to see F1 go next. “Easy” the seven-time world champion told fans in a question and answer session last June. “We need to go to Africa. It’s such an important place to go back. At the moment Formula 1 goes to countries and doesn’t really leave much behind, if anything. F1 has to shift to being a sport that does go to places and leaves behind something that can really help the communities. I think bringing the attention back to Africa and really highlighting the beautiful place that it is, that’s the most important place we have to go to. It needs to be held where it’s not all about money it’s about the people. In business, that’s not always the case that’s something I’m really pushing for.”
The latest South African Grand Prix bid is well established. Fronted by Warren Scheckter, son of multiple South African Drivers Champion and former F1 driver Ian and 1979 Formula 1 World Champion Jody’s nephew, the new South African GP company has the prime intention of returning South Africa to the Formula 1 World Championship with Jody Scheckter himself as founding president. Jody’s presence brings great credence to this latest bid to see a race that was once an integral facet of F1 back into the world championship. The company had planned an F1 Festival at Kyalami and Johannesburg last year, which was cancelled as lockdown commenced, when plans were already well advanced. The South African GP initiative has been active since 2015.
“We planned the Festival as part our efforts to bring Formula 1 back to South Africa,” Warren Scheckter confirmed a year ago. "Our objective is to successfully secure and promote Formula 1 events in this country. South Africa has a rich heritage of Formula 1 racing with a large and enthusiastic fan base, it’s also a destination country, which makes it an ideal location for the Formula 1 brand. F1 also has no events in Africa and South Africa offers huge potential market for the sport". Scheckter, however, remained coy on a timeline for a race at the time: “We are in advanced negotiations with Formula 1, but these initiatives take time. We hope it will be quite soon. Toby Venter has rebuilt Kyalami, which has a significant historic association with Formula 1, to a very high standard and the circuit is now a suitable Grand Prix venue. That also now makes bringing Formula 1 back to South Africa far more viable. Formula 1 also makes significant and positive impact to all the countries where it races and the sport will generate substantial value to the South African economy. It will create thousands of jobs and attract tens of thousands of tourists every year,” Scheckter concluded. “The Grand Prix will put South Africa into the global spotlight in the most positive manner it is the kind of positive stimulus this country needs right now.”
The South African Grand Prix has a glorious history that stretches back to the
1930s at East London and went on until the final race at Kyalami has remained intact and was five years ago acquired on auction by local Porsche distributor Toby Venter, who completely restored, renovated and lengthened the circuit. While it is not yet fully F1 graded, according to Venter Kyalami “will not take very much to achieve Formula 1 specification”. The Johannesburg businessman has never hidden his desire for his circuit to host a Grand Prix again. There have since been several attempts to bring a South African Grand Prix back, including two plans in Cape Town as well as various apparent Kyalami efforts. New F1 boss Stefano Domenicali’s comments this week now suggest that such plans could emerge from their lockdown hiatus perhaps even sooner than what most expect.
Several 2021 F1 venues remain uncertain under lingering lockdown pressure. But Most interestingly, Kyalami last year most successfully hosted probably the only flyaway international race in lockdown, when the ICGT Challenge converged on the circuit for its season-ending 9-hour finale in December. The circuit was also earmarked for a World Endurance Championship 6-hour race around now, but that also succumbed to the effects of lockdown. International motorsport is on the rise following a recent drought in South Africa, World Rallycross is expected to return to Cape Town in December, where a Formula E bid is also in its advanced stages.
Getting back to his briefing this week, new F1 boss Domenicali also hinted as a return to a second US Grand Prix, plausibly in Miami and that “Vietnam is no longer on the calendar but it’s still an open option.” He also mooted a “Saturday sprint race concept without a reverse grid is on the cards to be trialled as early as this year,” and that the sport needs to address the quality of its F1 rookies considering the rise in moneyed drivers placed before talented youngsters. Whatever happens, there is no doubt that Formula 1 mad South Africa will fully embrace a Grand Prix return. Kyalami attracted huge crowds when the circuit briefly hosted F1 pre-season tests in the early 2000s, not to mention that Africa is currently the only continent not featured in F1’s ever-growing calendar. A South African grand Prix certainly would be a welcome and wonderful addition to the Formula 1 calendar.
Daimler to disappear and change name to...?
Daimler AG, the parent company of Mercedes and thus of the Formula 1 team, is to change its name to Mercedes-Benz, the company announced on Thursday. Not an earth-shattering change, but the company's structure is also going to change. The name Daimler is a relic of a merger between the company of Karl Benz and Gottlieb Daimler in the 1920s. Although the company had long been virtually synonymous with Mercedes, the Daimler name stuck around for almost a century. This is now coming to an end and Bloomberg reports that the Daimler share has immediately risen nine per cent. In the world of passenger cars, Mercedes-Benz is simply a stronger brand, so this is a logical step.
But that is not the only change. The bus and truck divisions of Daimler are to be separated and become a separate company. However, the Daimler name will remain. "Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different companies with specific customer groups, technology paths and capital requirements," says CEO Ola Kallenius.
F1 could waive $200m anti-dilution fee for potential new teams
Formula 1 could be prepared to waive the $200 million “anti-dilution” fee for new entries into the championship, according to F1 CEO Stefano Domenicali. The fee is aimed at compensating the existing teams for any potential future loss of earnings that the arrival of a new constructor could result in. Under the current revenue structure, every team in the championship receives a pay-out, rather than just the top 10 finishers in the standings as was previously the case.
Asked if the fee could be waived in certain circumstances, Domenicali told reporters that it would be considered in “cases that need to go deeper into the discussion without that money.” The quotes suggest that F1 would be open to new entries in the future and Domenicali restated that the sport is currently in discussions with manufacturers that had an interest in joining the series. “We are receiving a lot of interest from OEMs who want to understand the future of Formula 1,” he said. “We are receiving, it seems strange from outside, but I’m very happy for that some new requests for teams or other organisations that want to see if there is a possibility to invest in Formula 1. These are a sign that the foundation and ideas we have on the table are good for the benefit of a positive future for Formula 1.”
Additionally, co-founder of rumoured prospective constructor Panthera, Benjamin Durand, said that they were still considering the options available to them. “We welcome Stefano’s comments but we need to understand under which circumstances the fee could be waived,” he said. “We are currently investigating other options, including investments in existing teams. This could alter that.” Haas was the last new team to enter F1 when they made their debut back in 2016.