The future of the Korean Grand Prix seems to have been secured after a successful deal to renegotiate its hosting and TV license fee has been accepted by FOM.
The organisers approached Bernie Ecclestone in 2011 to reduce costs in an attempt to stem its losses which were estimated at £35 million ($56m) last season
The new deal, according to the organisers, will see savings of over £12.5m ($20m) annually, thanks to a 10% reduction in the hosting fee which cost £22.7m ($36m) last year and massive reduction in the annual TV license fee until 2016 – when their contract expires.
“With the successful negotiation, we’ll be able to save a significant amount of money this year,” Kang Hyo-Seok, director of the Korean F1 organising committee, told the Korea Herald.
Despite the savings, the event is expected to continue losing money in the region of £16.5m ($26m) per year, which Hyo-Seok admitted was a “difficult situation,” but they are “trying hard to improve it.”
