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Started by natsirht28, June 16, 2013, 06:59:19 PM
Quote from: Brent on June 16, 2013, 09:41:27 PM1. Ideally near a major transportation hub.2. Up to Formula 3. Investing in an F1 track is really nonsense since you only get to host a race once a year if you get a license. Something that can be split up into two would be ideal.3. Corporate events.4. Propoer hospitality suites, grandstand, space for food concessionaires, ample amount of toilets.5. FIA specified standards for up to Formula 3.
Quote from: Paul on June 17, 2013, 10:34:36 AMi think from a business standpoint, there's not much money to be made in a racing circuit. consider first the cost of the land, if ever you're gonna buy it. you're gonna need big space, maybe 5 hectares. so that means it has to be in a province. then the cost of constructing an FIA-grade circuit itself, plus hospitality suites, plus proper garages, would certainly be astronomical.now how can you make money out of it? the best way would be advertising. how do you attract companies to advertise in the circuit? best way is to have TV coverage in all the racing series being held at your circuit. here now lies the problem, do we have a local racing series right now that has a contract for TV coverage? no. you're gonna have to host a regional motorsport event like GP2 asia, AFOS, asian touring cars and the like. i'm not sure, but you're still going to have to pay for hosting license, if ever they consider the venue. when hosting international motorsports, you're area should be prepared for the influx of foreign people coming in. so facilities such as hotels, restaurants should be present.another way to recoup your expense would be some form of subsidy from the local government, since you could argue that you are boosting local economy by attracting visitors to the area. holding track days will also net you some money, but i imagine this will be small amount. rely on it solely, then you grow old and still not get ROI. an example of corporate events brent mentioned are the porsche driving clinic, or BMW media tests. i don't know how much they pay but surely more than track days.it's a vicious cycle this business is. personally i wouldn't recommend it. if you're going to depend your daily life on it. don't. but if you already have an existing business and you're bleeding money from every orifice, then as a die-hard motorsport fan, DO IT!
Quote from: natsirht28 on June 17, 2013, 10:15:38 PMThank you very much for the reply and help. I do agree with you, but my plan is to do a phasing construction development w/c means is to build only a few facilities like drag racing and off-roading facilities at first and then eventually, to add or build new improvements so as not to be burden of the total initial cost. My another question is how/why racing circuit here in the Philippines like the BRC,CRC, etc. are still in operation if it is not that profitable? Thanks
Quote from: Vivo on June 18, 2013, 11:05:08 AMHow about a race resort like Ascari... membership fee with annual fee, you can have access to the race track, luxury hotels, condos, spa, helipad, beach, And your market would be local rich guys and foreigners... maybe attract those rich Japanese race boys too... they pay a lot just to play on the race tracks...http://www.ascari.net/
Quote from: Paul on June 18, 2013, 10:21:20 AMi'm not saying it's not profitable, i'm just saying don't make it your day job. once upon a time we had a local touring car series and hosted an asian formula 3 event in BRC. so i'm guessing BRC has recouped its expense already, but clark i reckon still has yet to. impressive as the clark facilities are, it has yet to host a proper racing series. i would also suggest you add karting to your proposed track as the shell super kart series i think is still alive.let me also just state that what i am saying are just my personal opinion and specualtion from a business standpoint and until we get a chance to talk to the owners of these circuits (and divulge infos) and take a looks at their books, we can only have these discussion.
Quote from: Vivo on June 18, 2013, 01:10:52 PMRace track country club is the trend right now... this is the new alternative to golf...