Singapore’s street race could be the key to the stock market floatation of formula one.
The Business Times reports that with the sport apparently wanting to float on Singapore’s exchange, the first step will be a new contract for the Asian city-state’s annual night street race.

The current race contract expires this year.

“Negotiations are underway but it is understood that one sticking point is the sanction fee,” the report said.

The Business Times said the Singapore government currently pays about $40 million for its race every year; a figure “roughly twice” the amount paid by Malaysia.

“The Singapore government wants formula one to be listed here and for that to happen, it knows the race has to remain here,” an unnamed banker said.

“But at the same time, it doesn’t want to pay top dollar again. So the bargaining should continue for some time.”

The banker added that F1 chief executive Ecclestone also holds a strong negotiating hand.

“(He) knows Singapore needs him because the SGX (exchange) hasn’t had any big names in recent years. Being the shrewd businessman that he is, he will play hardball.”

 Singapore, the southeast Asian city-state and the scene of F1′s annual street night race, could be at the centre of the sport’s plans for the future.
Sky News reports that Temasek Holdings, one of Singapore’s principal sovereign wealth funds, has been approached by F1′s majority owner CVC with a proposal to buy into the sport.

It is also rumoured that F1 could be floated on the Singapore stock exchange.

F1 chief executive Bernie Ecclestone admitted last November that, “It would be better (for CVC) to float the company in Singapore than sell it”.

The Singapore Exchange (SGX) would not comment.

“It is not our practice to publicly comment on our dealings with individual entities,” a spokeswoman told the AFP news agency.

Even if Singapore decides against extending its current F1 race contract, the Asian city-state will host at least four more grands prix.

Last month it emerged that the government was yet to decide whether to extend its current race contract beyond 2012.

Senior minister of state S. Iswaran said the government wants to “make sure the economic benefits are justifiable going forward”.

But even though Singapore’s contract expires in 2012, Formula One Administration has a five-year option to extend the deal, according to Singapore news network Channel NewsAsia and the Straits Times broadsheet.

The reports said that even if the government decides against a new contract, it will have to serve notice and host the sport until at least 2014.

Trade and Industry minister Lim Hng Kiang said in parliament on Monday that the government’s decision about F1 “will be based on an assessment of the costs and benefits to the economy over the long term”.

He said the outcome of the review might not be known for a year.

The Singaporean government is yet to decide whether to extend its formula one race contract beyond 2012.

Earlier this weekend, F1 chief executive Bernie Ecclestone said he would be happy if the sport continued to return to the Asian city-state for another 20 years.

Singapore, which became F1′s first night race in 2008 with a five-year deal, has become a highlight of the annual calendar.

But senior minister of state S. Iswaran said on Sunday the government would need to weigh up the costs and benefits before making a decision about the future of the event.

“We want to make sure the economic benefits are justifiable going forward,” he told reporters at the Marina Bay circuit on Sunday night.

“I would say the decision to proceed will rest on a robust cost-benefit analysis, and clearly the terms on any deal we get going forward,” Iswaran added.

Local reports said the current deal includes a two-year option.

As afternoon becomes evening in Singapore, the storm clouds are gathering above the city street circuit.

As the experience of the past week has shown, any significant rain from now until the race-start at 8pm is likely to guarantee a wet track for the grand prix.

“The track dries incredibly slowly,” observed Red Bull’s Mark Webber.  “It’s something I haven’t seen in my entire career.”

Until late afternoon on Sunday, the sun had been shining in the Asian city-state’s Marina Bay area.

But with three hours to go until race time, the skies have darkened, the wind is picking up, and there has been the odd drop of rain.

There is rain showing on the longer distance radar, but most paddock sources believe the race should be dry.

“If it does rain, the track will never dry out.  It takes so long,” agreed McLaren’s Lewis Hamilton.

Bernie Ecclestone says he would be happy if Singapore emulated the success of its night race with an unchanged format “for 20 years”.

The F1 chief executive expressed his delight with the sold out event in the Asian city-state late on Friday at the opening of a Hublot watch boutique near the Marina Bay venue.

According to the local Straits Times newspaper, Ecclestone wants the Singapore race to stay the same until 2030 “and then see what needs to be changed”.

The 79-year-old Briton said the race is a jewel in F1′s crown and “keeps getting polished”.

He did not mention two criticisms of the event.

After practice, having seen his friend Adrian Sutil’s Force India launched spectacularly, Lewis Hamilton slammed the re-profiled turn 10 chicane as “ridiculous” and “the worst corner I’ve ever driven in formula one”.

And reigning world champion Jenson Button pointed to track drainage as a problem, explaining that long after the rain had stopped, there was “a lot of water coming up through the circuit”.

As has become the trend in Singapore this week, it has been raining once again on Saturday afternoon, prior to the evening practice session on qualifying day.

The F1 circus is generally very happy with the event, however, despite Nico Rosberg arriving back at his Pan Pacific hotel at 2pm on Friday night to find the kitchen had stopped serving dinner.

The German told AFP news agency: “The atmosphere is incredible and the concept of a night race works really well once you get into the routine of staying on European time.”

Mercedes insists it is still not worried about Michael Schumacher’s outings on the saddle of powerful superbikes.

Immediately before travelling to Singapore this week, the seven time world champion tested 180 horse power KTM and Honda bikes at the Sachsenring circuit in Germany.

It was on the same sort of German IDM championship bike in early 2009 that Schumacher fell and hurt his neck; an injury that prevented him from racing in injured Felipe Massa’s Ferrari cockpit last August.

But Mercedes’ Norbert Haug said in July that if “Michael can deal with the risk, so can we”.

And a spokesman for the German marque told DPA news agency on Wednesday: “Michael has fun riding bikes and knows exactly what he is doing, and we know that too.”

Schumacher arrived in Singapore on Wednesday, and immediately headed to the Marina Bay area to inspect the street circuit on a scooter.

The German has never raced in the Asian city-state, nor in a formula one car under lights.

“Driving a new track has never been too complicated for me and I am usually very quick to learn and find the rhythm,” he said.

Fellow Mercedes driver Nico Rosberg was asked in Singapore on Thursday if he will be offering advice about night racing to his famous teammate.

“He will probably ask, I probably won’t tell him anything,” he joked.

F1 drivers have admitted they are concerned about the prospect of rain under the Singapore lights this weekend.

During the first two editions of the sport’s first night event in 2008 and 2009, wet weather did not fall on the city street circuit.

“I’ve never driven in the rain at night,” said F1′s most experienced driver Rubens Barrichello in the Asian city-state.

“I really don’t know what to say about that. We just have to wait and see,” added the Brazilian.

The worries are that the bright overhead lights will reflect off the wet surface of the track, and perhaps even the rain droplets themselves.

There was a huge downpour in the Marina Bay area on Wednesday, and on Thursday another severe storm rolled in.

“It (Wednesday’s rain) was so heavy that rivers of water flooded the track to a point where the tyres can’t deal with it,” said Sir Jackie Stewart.

“In daylight, we can see beyond the track if we’re heading into rain. But here, the light is contained on the circuit and everything else is dark.

“So it’ll be very challenging on the drivers’ peripheral vision,” added the triple world champion.

Red Bull’s Sebastian Vettel commented: “We’ve yet to experience any wet running on a floodlit track, so it will be interesting if that happens.”

Nico Rosberg admitted he is “definitely worried” about the weekend’s weather forecast.

“It’s going to be rather interesting if it rains, but I hope it doesn’t because it will be quite messy,” said the German.