The decisions have been made following the completion of the tender process undertaken by the Department of Economic Development to find a commercial promoter for the TT, Classic TT and an international TT Series.
Minister for Economic Development Laurence Skelly MHK said:
‘The Isle of Man TT Races are iconic. They are very special to many in the motorsport community. They also play a huge role in our community, bringing over £20m into the Island’s economy. The TT brand helps raise the image and awareness of the Isle of Man globally.
‘Given this, the Isle of Man Government is committed to growing both the TT and the Classic TT sustainably and in a manner that works for both fans and the Island. To do so, we need to invest in the events so that we can bring exciting new content while maintaining our proud heritage.
‘My Department has shown we can manage this delicate balance through the highly successful Festival of Motorcycling as well as the growth we have delivered in the TT in recent years, both in terms of the visitors drawn to our Island as well as the global TV audience of over 30m.
‘We must continue to seek new opportunities for growth – it is in that spirit that we entered into the procurement process this year to seek a private promoter with the right skills and resources to help us grow the TT and Classic TT as well as launch a new, ambitious international TT Series.
‘My Department has learned a great deal over the last year, both through this process and through the excellent growth we have continued to deliver in 2015. We were very fortunate that we received strong bids from several organisations.
‘As a result, I am more convinced than ever that we need a private promoter partner who can bring relevant expertise, commercial acumen and new ideas so that the TT and Classic TT can continue to grow. This is also consistent with our policy to deliver a smaller, simpler Government.
‘With regard to the proposed TT Series, this has always been a relative high risk idea – indeed, some people have voiced concerns that the TT Series might fail or might dilute focus on the Isle of Man events, either of which could harm the TT and the Island’s economy.
‘My Department therefore considered very carefully the bids to see whether we could be confident we could deliver the proposed TT Series while managing the risks. If we were a private business, then I think we may have been prepared to take the risks associated in pursuit of the substantial benefits offered in at least one of the bids.
‘However, Government must be mindful of the importance of the TT to many other stakeholders including local businesses, so my Department has applied a higher threshold of risk than say a private organisation would apply. We have therefore decided that the best way forward is to focus on growing the home events and making them more appealing. In a few years we can then re-consider the TT Series idea with a stronger proposition to take the global motorsport market.
‘I am announcing that we will soon commence a new procurement process to find the right promoter partner to help us grow the TT and Classic TT. Government must be seen to be fair to all potential bidders, both local businesses and others, so given this is different in scope to the previous procurement process it is necessary to commence a new process.
‘We expect to be able to complete this new process prior to TT2016, which will enable us to maintain the momentum we have already built in our plans to date. I believe this is the right way forward to deliver best value for the taxpayer, grow our economy and respect the TT’s loyal fan base.’
The Isle of Man Government spends over £5m annually to host the TT Races and Festival of Motorcycling and recoups a similar sum from the associated sponsorship and tax receipts. As a result, the Island’s economy gains an annual boost of over £20m as well as invaluable international publicity. The Department believes that a private promoter partner can help to continue to grow visitor numbers, media coverage and sponsorship, helping to deliver further economic growth and Government income.