MUMBAI: Machdar Motorsports, the company behind the Indian motorsports league, plans to raise Rs 1 billion from private equity investors to fund the operational expenses of the championship.

"We are in advanced stage of negotiations with several private equity investors and banks to raise capital for organising the event. We are looking to raise Rs 1 billion which will be used to pay for race drivers, cars, venues and so on," a company source told Indiantelevision.com on condition of anonymity.

The inaugural season of the i1 Super Series as the league is known was scheduled to take-off in December last year but had to be postponed due to unavailability of Buddh International Circuit, one of the most important component in the league‘s plan.

The league, which was rescheduled for February, had to be put off again till 2013 due to clash with Uttar Pradesh assembly elections. The organisers are now looking at a beginning of March date to organise the championship.

For starters, the i1 Super Series will have nine franchise owned teams with each team being represented by two drivers, one of them being a certified Indian driver by mandate. The championship carries prize money of $2 million.

The organisers have selected Radical SR3 supercar for teams considering the drivability and safety features. The Radical SR3, organisers say, will give a level playing field to all the teams and will make the race competitive.

Taj Television-owned Ten Sports has signed a multi-year deal with Machdar Motorsports that is a mix of annual broadcast fee as well as revenue share arrangement.

The organisers have already signed five out of the nine franchises which includes Chennai franchise (Ind-Barath Power Infra), Delhi franchise (Arindham Chaudhary-promoted Planman Stars), Hyderabad franchise (Actor Nagarjuna), Bangalore franchise (Arjun Baljee and Rudra Dalmia), and Mumbai franchise (Actor Shah Rukh Khan and Jay Mehta).

The franchises will be given for a period of 15 years with a base price of $5 million which was later reduced to $3.5 million and a $1 million per year payment commitment.

The business model of the league includes broadcast rights and sponsorships as central revenue pool with 60 per cent of that being shared with the franchise owners.

Master Blaster Sachin Tendulkar has come on board as brand ambassador and advisor of i1 Super Series.

The media duties of the event have been assigned to Disha Communications while UK-based Interstate Associates is managing the creative duties. ITW Consulting is working with Machdar Motorsport as the sponsorship management agency for the event.

i1 Super Series has got the recognition of F?d?ration Internationale de l‘Automobile and Federation of Motor Sports Clubs of India, the governing body of the sport in India.

The races will be held across multiple international racing circuits including New Delhi, Chennai, Abu Dhabi, Doha, Kuala Lumpur and Pattaya.

Drivers in the inaugural i1 Supercar Series will include 1997 Formula One Champion Jacques Villeneuve, 2011 Formula One drivers Vitantonio Liuzzi and Karun Chandhok, and former F1 race winners Giancarlo Fisichella, Heinz-Harald Frentzen, Jean Alesi. The Indian drivers include Armaan Ebrahim, Aditya Patel and Parthiva Sureswaren.