Bangkok: The Sports Authority of Thailand (SAT) has dispelled misconceptions and concerns surrounding the organization and renewal of the MotoGP contract at Thailand's circuits by releasing comprehensive information.
According to Thai News Agency, the SAT's report, "9 facts about MotoGP at Thailand's circuits: Not worth it, private sector not supporting, no spectators, is this true?" highlights the economic value and clear returns the country receives from hosting the prestigious event.
The report clarifies that Dorna Sports, the copyright owner of MotoGP, mandates direct contracts with government agencies, ensuring stability and supervision. The SAT, as the government agency, directly contracts with Dorna Sports, with licensing fees allocated annually without private sector intervention. Revenue from competitions, including ticket sales and sponsorships, is funneled back to the SAT, alleviating government budget burdens.
Amid concerns about increasing copyright fees, the SAT has successfully negotiated to maintain Thailand's fees at a lower rate compared to other countries. The inclusion of a Sprint Race and a Race Day has boosted spectator interest, enhancing competition value. The SAT emphasizes that the negotiations are in the country's best interest amid global price increases.
Addressing budgetary concerns, the SAT distinguishes between sports and disaster relief allocations, underscoring that the MotoGP budget does not impact funds for flood victims. The request for a 4 billion baht budget for the 2027-2031 contract is separate from disaster relief budgets.
The SAT refuted claims of rushed contract renewals, explaining that the current negotiations are timely, ensuring Thailand retains hosting rights against global competition. The economic impact of hosting MotoGP is estimated at over 28 billion baht in the next five years.
Despite misconceptions about declining attendance, the SAT reports consistent growth, with a record attendance in 2018 and gradual increases post-COVID-19. The event has generated nearly 25 billion baht in economic value over the past eight years, with future projections promising even greater returns.
Contrary to claims of waning private sector support, the SAT highlights successful partnerships with major sectors, reducing government financial burdens. Even during the COVID-19 crisis, the SAT secured funds from private sectors and ticket sales. The upcoming contract aims to raise over 700 million baht from private support, maintaining Thailand's reliance on the private sector.
The SAT clarified that Chang International Circuit, the only FIM GRADE A stadium in Thailand, donates its facilities for free, saving 72 million baht in rental fees over six years. This strategic use of the venue stimulates the local economy and tourism.
Revenues from the MotoGP tournament are managed by the SAT, prioritizing state interests and transparency. Hosting MotoGP has been consistently supported by successive governments, recognizing its economic benefits and contribution to Thailand's national image.
In summary, the SAT's comprehensive report addresses misconceptions and highlights the substantial economic, strategic, and governmental support for MotoGP in Thailand, reinforcing its value and ensuring continued success.