G Noida: UP govt agrees to raise ₹80cr for 2025 edition of MotoGP Bharat
Fairstreet Sports has said they have paid some dues and the rest will be paid once the state releases the additional funds, and there’s no irregularity in the event organisation
The Uttar Pradesh government officials said the state will sign a contract with Spain headquartered Dorna Sports and its Indian partner, Fairstreet Sports, to organise MotoGP event in Noida next year, and will keep organising the annual event till 2029.
In order to organise the event through its Invest UP department, the state government will raise ₹80 crore to cover Dorna Sports’ one-year licensing fee, officials said.
To be sure, the government has decided to arrange ₹80 crore even as Fairstreet Sports is facing allegations of fund embezzlement in organising the 2023 MotoGP event in Greater Noida’s Formula One Circuit.
Fairstreet Sports is facing a probe by Yamuna Expressway Industrial Development Authority (Yeida) for failing to pay over ₹30 crore to different vendors who were engaged in track revamping and other services at the Buddh International Circuit in 2023.
Yeida, under whose jurisdiction the track falls, has threatened to blacklist Fairstreet Sports if these dues remain unpaid.
“We have paid some dues and the remaining will be paid once the state releases the additional funds that we sought. There is no irregularity in the event organisation,” said Fairstreet chief operating officer Pushkar Nath Srivastava.
According to the audit report by Yeida, Dorna Sports did not receive the entire ₹80 crore licensing fee for the 2023 event.
The audit said the total expenses for the event held in September 2023 was ₹159 crore. Fairstreet Sports could only arrange ₹52 crore. The remaining ₹18 crore was paid by government bodies such as Yeida.
Following fund mismanagement allegations, Dorna Sports sought a financial commitment from the Uttar Pradesh government. And, the government agreed to arrange ₹80 crore in view of the importance for the state’s branding, business scope, and investment potential.
In a letter to Fairstreet Sports, and all stakeholders, including Invest UP and Yeida, in May-end, 2024, Uttar Pradesh’s additional chief secretary and the industrial and infrastructure development commissioner Manoj Kumar Singh promised an environ for the smooth functioning of the event.
According to the letter, a tripartite agreement between Dorna Sports, Fairstreet Sports, and Invest UP will be signed for organising the event.
The Invest UP is tasked to arrange ₹80 crore via sponsorship, and funds from agencies.
“The annual cost of hosting the MotoGP event may be ₹150 crore and to organise the event, the government will open an escrow account to manage the sponsorship and ticketing money. Invest UP will arrange any funds that is needed beyond ₹80 crore,” said Singh.
Officials said that the 2024 MotoGP Bharat event has been deferred to March 2025 for want of suitable weather.
Fairstreet Sports confirmed the postponement, maintaining their commitment to host the event in the rescheduled slot in March 2025, anticipating better weather conditions for spectators, and riders.
“The probe has established that Fairstreet has not paid the dues to half a dozen vendors. We have decided to recommend that the blacklisting of the company,” said Arun Vir Singh, chief executive officer (Yeida)