I’ve debated in this forum previously, the merits of various activities calling themselves “sport”. In a nutshell, sport is competitive activity that can be won outright and which raises a sweat through the competitor working physically for his or her victory. Thus running, jumping and swimming are sports. Darts, golf and anything synchronised are not.

Whither motorsport? Clearly a machine bears the brunt of the load, but having lived in Formula One for a while, I can testify that F1 drivers definitely sweat in pursuit of victory and need to be fine physical specimens in order to pilot their machines at all. Motor racing, and Formula One in particular, is definitely a sport.

But not according to the Indian government.

India’s aspirations to join the developed world as a sporting venue are well documented. The Commonwealth Games beckons and F1 is supposed to visit an as-yet un-built circuit somewhere in Uttar Pradesh in 2011.

F1 has a record of attendant commercial prosperity: witness the annual $500m delivered in attributable commercial benefit to Bahrain and the (admittedly unlikely) $570m claimed by Valencia in relation to its 2008 race. F1, commercially speaking, will be A Good Thing for the good people of Uttar Pradesh.

Which makes it surprising that the Indian authorities this week refused to allow a special tax allowance to the company seeking to build the circuit and promote the Grand Prix, on the grounds that Formula One is not a sport. The tax allowance relates to foreign currency transfers and applies to sport, but not to entertainment.

F1 has been deemed an “entertainment” rather than a sport (please, Indian government, what is the difference?) and, more pertinently, a “commercial exercise” (again, what is the difference?) and therefore not eligible for the allowance.

This decision will cost the promoter about $36.5m. Not enough to slow development, but enough to leave a sour taste in the mouths of those seeking to develop one of the world’s emerging economies through the unifying medium of sport.

Shame on you India. This is a very poor advertisement for your country as a sporting venue and one which will, for a while, drive potential investors elsewhere.

By Scott Garrett on August 26th, 2009

Tags: Commonwealth Games, Formula 1, Politics, Sport