Report Bangkok's Formula One Ambitions Face Potential Financial Deficit

[snoop1130]

File photo for reference only

 

Thailand's plans to host a Formula One Grand Prix in Bangkok from 2028 to 2032 have gained momentum following Cabinet approval. The ambitious project aims to elevate Thailand's global standing through a five-year street racing event. However, a new analysis highlights significant financial risks, suggesting the endeavour could lead to substantial state deficits.

 

Costs and Concerns

 

With a projected cost of over 41.379 billion baht, the proposal relies entirely on public funding. This includes extensive infrastructure development and rights fees to host the championship. The Cabinet Secretariat has expressed concerns about the financial strain on state coffers, particularly amidst existing budgetary constraints and essential commitments.

 

Financial Risks

 

An internal analysis outlines bleak financial forecasts:

 

• Base Case: Deficit of 9.788 billion baht
• Better-than-Expected Case: Deficit of 6.824 billion baht
• Worse-than-Expected Case: Deficit of 10.752 billion baht

 

Each scenario predicts revenue falling short of the event's operational and investment costs, placing the entire financial risk on the government.

 

Policy and Objectives

 

Despite these projections, the Cabinet Secretariat acknowledges the policy's potential to boost Thailand's international image and foster sports tourism. However, to mitigate risks, several prudent steps are recommended:

 

1. Comprehensive Impact Assessment: Explore revenue-increasing and cost-reducing measures, engaging the private sector to share financial responsibilities.
2. Fiscal Prudence: Adhere to fiscal discipline laws, ensuring thorough cost-benefit analysis and fiscal sustainability.
3. Infrastructure and Community Impact: Conduct detailed studies on local infrastructure, environmental impacts, and community readiness, considering possible disruptions to daily life.
4. Public Engagement and Transparency: Ensure open public consultations and adherence to legal procedures to prevent long-term disputes.
5. Private Sector Support: Seek private financial backing and allocate surplus funds appropriately to minimise government burden.

 

As Thailand aspires to boost its global prestige through the Formula One event, these strategic measures aim to balance ambition with fiscal responsibility, ensuring a sound investment for the nation’s future.

 

  Adapted by ASEAN Now from The Nation 2025-06-23

 

 

[redwood1]

Some people enjoy watching disaster movies...

 

I have changed my mind about this race,The Land Bridge, and The ridiculous bridge to Koh Samui.....

 

Now

 

I hope they go ahead with all of them.....I have my popcorn and I am ready to watch some real epic disaster projects....

[quake]

Good luck.

 

[Upnotover]

Fools.

[dinsdale]

"We should try and get the F1." "Good idea. I'll get a team on it for costings." "No. We'll do the costings after we get it."

[newbee2022]

Is this the never ending story?

Not every week once only, but twice.

I would fancy DAILY.

[bg53]

Recoupment of expenses for mega-events like F1 is by no means guaranteed.

 

Good luck!

[Patong2021]

The only group which  makes a large profit with little risk are the owners of the F1 business. 

[Liverpool Lou]

1 hour ago, dinsdale said:

"We should try and get the F1." "Good idea. I'll get a team on it for costings." "No. We'll do the costings after we get it."

That's exactly what hasn't happened...well done.

[Liverpool Lou]

1 hour ago, newbee2022 said:

Is this the never ending story?

Not every week once only, but twice.

I would fancy DAILY.

...and is your exaggeration never-ending?

[LennyW]

The last thing F1 needs is another street race!!

[WHansen]

6 minutes ago, LennyW said:

The last thing F1 needs is another street race!!

Totally agree.

The cars have outgrown many circuits, they have one racing line and it turns into a boring procession.

 

[hotchilli]

15 hours ago, snoop1130 said:

The ambitious project aims to elevate Thailand's global standing through a five-year street racing event. However, a new analysis highlights significant financial risks, suggesting the endeavour could lead to substantial state deficits.

A bit like hosting the Olympics... looks great on paper.

[wensiensheng]

Recommendations 1 - 4 all involve extra cost.

 

Not saying they shouldn’t be done, if done transparently and effectively, but those things should be automatic and have been included in the review package prior to approval.

 

The scope for corruption in this is tremendous. Even in Singapore a cabinet minister was found guilty of corruption involving their F1 race, and Singapore is usually squeaky clean.

Of course, in their case once discovered corruption is investigated and punished. In Thailand a discovery of corruption, is an opportunity for more corruption.

[wavodavo]

23 minutes ago, wensiensheng said:

Recommendations 1 - 4 all involve extra cost.

 

Not saying they shouldn’t be done, if done transparently and effectively, but those things should be automatic and have been included in the review package prior to approval.

 

The scope for corruption in this is tremendous. Even in Singapore a cabinet minister was found guilty of corruption involving their F1 race, and Singapore is usually squeaky clean.

Of course, in their case once discovered corruption is investigated and punished. In Thailand a discovery of corruption, is an opportunity for more corruption.

Here's Thailand's chance to hold a very unique F1 race. Instead of a boring old street race they could stage the world's longest race down Sukumvit Road. Starting at Nana plaza and finishing at Soi 6 in Pattaya via Beach Road and Walking street 448 kilometers.This would get world wide publicity and be a winner !! Good idea or what ??

[ronster]

Funny how they were not sure if they could meet the remaining budget of a few million bht for the Moto GP to continue , yet can suddenly find billions for this farce ! 🙈

[ikke1959]

It is like the casino bill... the F1 is only to please the Shinawatra family...They will earn a lot of money with this event and so it must come to Thailand... The PM did not went for nothing to Monaco to talk about it... It is no wonder that the PM doesn't step down until the budget for 2026 is approved.. All this kind of events and benefits for this family should pass...Kick them out let them organize things in other countries

[Grumpy one]

11 hours ago, LennyW said:

The last thing F1 needs is another street race!!

If you add the soi dogs the food sellers along with taxi and bus drivers, it could be a very interesting race

And let's not forget the potholes 

[MalcolmB]

13 hours ago, Patong2021 said:

The only group which  makes a large profit with little risk are the owners of the F1 business. 

And hotels, restaurants and local businesses of course.

[kingstonkid]

13 hours ago, newbee2022 said:

Is this the never ending story?

Not every week once only, but twice.

I would fancy DAILY.

 

The f1 study is being pushed for one reason and 1 reason only.

 

To give the press something to cover besides the disastrous Casino/entertainment plan, the fact that people do not have enough money to eat, the fact that Thailand is losing major businesses instead of gaining, the education system sucks, and none of the university students got the 10k they were promised or the 25k a month jobs that the PTP promised.

 

 Saturday is going to be interesting, not just for the number of people that show up, but the demographics.  I think a lot of the youth that support PP will be there in droves, expect to see a lot of ORANGE

[kingstonkid]

1. Fiscal Prudence: Adhere to fiscal discipline laws, ensuring thorough cost-benefit analysis and fiscal sustainability.

Where is the money coming from, and what could it have been spent on to provide a better lifestyle for Thais?

1. Infrastructure and Community Impact: Conduct detailed studies on local infrastructure, environmental impacts, and community readiness, considering possible disruptions to daily life.

If they hold it at MorChit Then the following has to happen

 

1 JJ market has to be closed a year in advance ( this is the only logical location for the Pits and the housing of teams and cars.

 

2.  The traffic of fans walking and staying in the Parks is going to hurt the environment. Not even adding the fumes and air pollution from the cars in the different events running there.

 

3.  MorChit, which is one of the busiest bus areas, will have to be closed and everyone re-routed away from the BTS transit line not only for the weekend of the race but also for months in order to build the road.

 

1. Public Engagement and Transparency: Ensure open public consultations and adherence to legal procedures to prevent long-term disputes.

 

LOL, just imagine the lawsuits that will be filed, the protests that will happen, and the job losses that will be announced.  This will never happen in time because the courts do not move fast enough and we have professionals who can write charges and complaints faster than the court can read them.

1. Private Sector Support: Seek private financial backing and allocate surplus funds appropriately to minimize government burden.

The silence of PTT, CP and RedBull has been deafening.  Do you not think if they thought it possible, they would be jumping in with both feet

[AustinRacing]

What percentage of the estimate relates to bribes/siphoning especially if it’s public funds. 

[newbee2022]

20 minutes ago, kingstonkid said:

 

The f1 study is being pushed for one reason and 1 reason only.

 

To give the press something to cover besides the disastrous Casino/entertainment plan, the fact that people do not have enough money to eat, the fact that Thailand is losing major businesses instead of gaining, the education system sucks, and none of the university students got the 10k they were promised or the 25k a month jobs that the PTP promised.

 

 Saturday is going to be interesting, not just for the number of people that show up, but the demographics.  I think a lot of the youth that support PP will be there in droves, expect to see a lot of ORANGE

Yes, the opposition is growing.

Also the opposition against casinos, against F1 expenditure, against govt unfulfilled promises, against derailed economy, against rising prices, against insufficient pension plan against, against, again.

And?

[FritsSikkink]

15 hours ago, dinsdale said:

"We should try and get the F1." "Good idea. I'll get a team on it for costings." "No. We'll do the costings after we get it."

You don't get an F1 event that easily, needs years of preparation.

[StayinThailand2much]

What ever happened to the proposed Thailand space program? 😆 

[DaRoadrunner]

Ah yes but, the Thai Customs Dept will impound all 20 cars and demand fees for their release. Plus F1 will have to bribe countless officials to make it happen in the first place. They tried before and it fell through due to a lack of brown envelopes and the lack of a professional track.

[mikeymike100]

3 hours ago, hotchilli said:

A bit like hosting the Olympics... looks great on paper.

Wait that's an idea!

Next we'll be hearing Thailand has a put a bid in to host the  Olympics!!

[hotchilli]

40 minutes ago, mikeymike100 said:

Wait that's an idea!

Next we'll be hearing Thailand has a put a bid in to host the  Olympics!!

Don't even go there, they might be reading this.

[CLW]

Why no sponsoring from private companies? PTT and CP come to my mind instantly. They always first when it comes to government subsidies but quiet when it comes to spending 

[watchcat]

2 hours ago, StayinThailand2much said:

What ever happened to the proposed Thailand space program? 😆 

 

They're still looking for a pilot...?