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Buddh International CircuitBuddh International Circuit hosted hugely successful India’s inaugural F1 Grand Prix on October 30, 2011. The 5.14 km long Circuit has been designed by world-renowned German architect and racetrack designer, Herman Tilke, who has also designed other world-class race circuits in Malaysia, Bahrain, China, Turkey, Indonesia, the UAE, South Africa, South Korea and the US.Buddh International Circuit has been designed as one of the fastest and most exciting motor racing circuits in the world. It is well suited to the requirements of powerful, high-spec racing cars and motorcycles and will host some of the most challenging motorsport events on the planet. The track’s combination of 16 corners, high-speed straights and dramatic changes in elevation has been designed to provide ample opportunities for overtaking, which is what makes motor racing exciting. At the same time, in terms of adherence to safety norms and regulations, run-off areas, medical facilities, facilities for the media and overall infrastructure,BIC is among the best in the world.

Fig: Layout of the Buddh International circuit

BIC: Philosophy behind the name and the logoThe name ‘Buddh International Circuit’ has been chosen with reference to the area where the racetrack is situated – Gautam Budh Nagar district (near Greater Noida). Because of its location, naming the circuit ‘Buddh International Circuit’ was a logical choice for the company.The BIC logo is a stylized ‘B,’ the letter that stands for ‘Buddh’ and for ‘Bharat.’ The orange, green and white colours used in the logo are representative of the Indian flag, while the curves in the stylized ‘B’ in the logo represent the lines of a racetrack.

Buddh International Circuit: fact sheetLength: 5.14kmTurns: 16Highest point of elevation: 14mWidth of the track: Between 18m – 20mTop speeds on the circuit: About 320km/h, for an F1 carTotal seating capacity: About 100,000Approximate cost of building the track: US$400 millionDistance from New Delhi: 40km approx.

About Jaypee Sports International Limited (JPSI)Established in October 2007, Jaypee Sports International Ltd., a subsidiary of Jaiprakash Associates Ltd. (JAL), has constructed India’s premier motorsports destination – Buddh International Circuit (BIC) – which hosted India’s first ever F1 Grand Prix on October 30, 2011. In addition to F1, the track is also expected to host other top-level international motorsports events.BIC will be a part of Jaypee Sports City, which is spread over 2,500 acres. This facility will include a Cricket stadium that is being developed in two phases and which will have a seating capacity of 100,000 people. There will also be a hockey arena, a sports training academy and infrastructure for other sports.Jaypee Sports City, the country’s first fully integrated megacity built around a sporting lifestyle and featuring premium residential and commercial spaces, has been designed by world renowned architects and planners, WATG. One of the world's leading design consultants for the hospitality, leisure and entertainment industries, WATG has made a significant contribution to making Jaypee Sports City the best of its kind anywhere in the world.

Why Jaypee invested $400 million   Apart from the initial investment, Jaypee group will also be spending another 200 million dollars over five years, 35 million dollars will be spent per year on formula 1 license fee and the rest of the amount will be spent on the maintenance of the circuit. The current operating structure of F1 is such that it gives nothing to race circuits except a global calling card. But it's a card opens many, many doors.A week of F1 will only build brands: of the Buddh International Circuit as a motor-racing venue, of the Rs 18,500 crores ($4 billion) Jaypee Group as an organiser and developer, of India as a market with possibilities. The business the circuit does in the other 51 weeks will determine if it turns a profit. It's the other 51 weeks that needs to be worked to cover costs.

THE F1 DRAIN...F1 is controlled by Formula One Management (FOM), in which private equity firm CVC Partners holds 70% and financial services firm JP Morgan holds 20%. But the face, voice and spirit of FOM is minority shareholder Bernie Ecclestone—a diminutive, 80-year-old, with a clump of white hair.

He is the gregarious power broker who negotiates with teams and circuits, among others. He tends to give them a deal they resent, after they see what he has kept for the people he represents, but grudgingly play along because what is left is still a fair bit. Form is the supreme power in the sport. So, it receives all revenues from the sale of TV and Internet rights, gaming rights, and event and track sponsorships.

And the $1.5 billion entity doesn't pay a circuit to host an F1 race—the circuit pays it an annual fee. Since FOM is a private company, official numbers are unavailable, but it's widely quoted that 50% of its revenues are divided among the teams in a certain formula. However, nothing from that central pool comes to circuits. Circuits reportedly pay FOM $35-45 million a year as licence fee; the initial contract is for five years. Jaypee will also spend $15-20 million in operational costs—track and event management, logistics, and transport. That's a total operating cost of $50-65 million.

On the revenue side, the 125,000-seater circuit has basically one contributor: ticket sales. Tickets are priced in six slabs, from Rs 2,500 to Rs 40,000. Then, there are 55 corporate boxes, which reportedly went for Rs 30 lakh each initially and are now commanding Rs 50 lakh. On the basis of viewership figures from Star Sports which broadcasts F1 in Asia, the channel drew 26 million viewers in a recent F1 race. Even if 5% come, that is 125,000.

Expectations are of Rs 80-150 crore ($15-30 million) from ticket sales. Revenues from everything else that matters—title rights (sold to Airtel for $6-8 million a year), track advertising, the privileged $5,000 per person 'paddock club'—goes to FOM. In other words, Jaypee Sports will lose $35 million from the race. And it also has to recover the track's $200 million capital cost.

What creates the gain?

Motor racing will be the mainstay for the circuit. Besides F1, there's only one motor-racing series that requires a circuit to pay its race organisers: MotoGP, the F1 equivalent of motorcycle racing. The amount, though, is much lower— reportedly $3-4 million per year. All other lower series—Formula 3, Formula Asia and GT3, among others— pay the circuit.

Lower series are packaged for TV. For example, Formula 3 logs about 12,500 hours of TV time in 100 countries. Series like this share TV and advertisement revenues with circuits and therefore, most other races will be better revenue spinners.

Top companies have been bought in as partners for sponsorships for races.  Mercedes Benz has already offered their support and will setup a race car academy. This will be the German auto makers 4th such academy. The others are located in the US, Germany and China. The German luxury automobile manufacturer is also providing a fleet at the 2011 Indian Grand Prix.Mahindra and Mahindra (M&M) will also be proving support vehicles at the 2011 Indian Grand Prix, apart from using the Buddh International Circuit for future sports events. There's also the 5 year race lease contract with the international motor sports body FIA. There are

plans to open the track for public on Saturdays and Sundays. Aspiring racing car drivers and motor sport enthusiasts can come over here to practice.