Texas comptroller says money not guaranteed for U.S. Grand Prix By: Adam Cooper on 11/15/2011 Source - Read more: Formula One: Texas comptroller says money not guaranteed for U.S. Grand Prix - Autoweek
Sounds more and more like it will be a no go in Austin.. I don't follow F1 too much and not at all on the money side of it but how do they justify charging 25 million per race to the track!!! 16-18 races a year is a TON of money for someone!!! Then you have the TV contracts, sponsors etc... which monies I assume goes to the track to help pay the 25 million to start with???
As purely a F1 fan this is very disappointing. From a business owner and a tax payer in my state, I would understand and support Ms Combs's position, were it to be here in NC. Bernie also has way to many flights of fancy for me to give him $25million up front.... Bernie and F1 are for sale to the highest bidder, previous commitments be damned....
There are two main formulas in Formula One. One has to do with the cars and the racing and the other is Bernie Ecclestone's revenue formula. I'm no expert but as far as I can make out all non-ticket revenue goes to FOM, the company Bernie runs F1 for. This does not include money raised by teams through team sponsorships, etc, but all TV revenue and anything under contract to F1 in general. Some of this is shared with the teams based on a percentage, don't know what the numbers are but of course the teams are always talking about how they get too little. In addition, if you want to host a race, you have to pay Ecclestone/FOM for the privilege. Speculation is Austin's $25M bill is actually lower than normal and the cost is typically closer to $35M per venue, per year. Local race hosts/organizers make all their money from ticket sales, other sales, and anything else they can arrange like maybe an event title sponsor. Bernie thinks his prices are cheap because after you pay him you'll be left with tons of money and will make a fortune. Of course he assumes race organizers will make most of this money through exorbitant ticket prices (from hundreds to thousands per person per race weekend) and he sees nothing wrong with that. In his view, you shouldn't even ask to host a race unless 1) local gov't is willing to pay even if it's a losing proposition because they want the influx of income F1 ought to bring to the local economy, or 2) you're sure you can fill the stands with many thousands of fans willing and able to pay high prices, or 3) both. To him, the $35M price tag is just his cut of the fortune you'll make.....
All well and good Steve if you can trust him to abide by the deal. There are an awefull lot of variables in one of these deals, variables that Bernie can use to snatch an event away from you when a better offer comes in... Look what he's doing in Austin, already setting up his escape as everyone clamors for their piece of the F1 pie in in the US... ....pie....big pie....they couldn't even come close to matching the NASCAR attendance at Indy. Me thinks Bernie knows he has to pocket all the money he can up front...
I didn't say it was a good formula...sarcastic attitude isn't easily expressed via text. You're right, Bernie honors his contracts if he wants to honor his contracts. Ya pays yer money (up front) and ya takes yer chances.
Gah. I really appreciate Mrs. Combs position. She sees the benefit and wants to support it but isn't going to waste tax-payer's dollars. Good on her. Being an F1 fan I would have loved to see a race in Texas. It's looking like there will be a seriously PO'ed track developer in the near future. I'm honestly not interested in the F1 race in New Jersey. I'll watch it on TV but I have zero motivation to go there and see the race. I've been to there. The area around the course is a hole, and staying in New York is BLOODY expensive. No thanks.
I hope this doesn't die, though I think it probably will.. As much as I would love to see an F1 race local to me, I want to race on the track even more.
How the......do you start building a $300million facility for an event with the likes of Bernie behind it without having all the tees crossed and eyes dotted. Way more than just the $25million going on here.... This is the kinda crap that makes taxpayers not support projects like this......and rightly so. You wait, it will get done in the end but Bernie will wind up with way more in his pocket$. New Jersey taxpayers, pay close attention.....
$300MM is easy. I worked on the $8.6B (yes, Billion) CityCenter project in Las Vegas as a Financial Analyst. It was amazing to watch. The project was still in the midst of being DESIGNED when it was already being built. There was sooo much money wasted on that project it's not even funny. So $300MM is easy to do. :frown5:
I just want to see a F-1 race in this country. Its been to long since I when to one. (Long Beach 1981)
Bernie changes the game...don't cross Bernie, he will win and he will take more of your money in the process. Sorry but my opinion is Hellemund should climb down into the same hole as Peter Windsor and Ken Anderson.
Agree. Guess a ten year contract in hand is not really in hand with this bunch. As much as I would love to see F1 here; piss on Bernie and the whole lot and until they go the way of the Buffalo, this race fan will not spend one cent in support of F1.:incazzato:
Normally closer to $35M from what I've read. Speculation is Bernie gave Hellmund a discount price of only $25M (where's that code for sarcasm...) as a favor because they're old friends. I have no trouble believing Bernie would push the price back toward his regular even more ludicrous levels for anyone else. Also, check the attitude: "All they need to do is sign a contract." Right, that's all there is to it, just a signature. Just another sign he thinks his fees are a pittance and you shouldn't be playing his game unless you think of that kind of money as pocket change. Of course I think if he didn't already have a contract with the folks in New Jersey, and a number of prospects in other countries which he'll only have room for on the calendar if he can find venues to drop, he might be slightly more inclined to deal...maybe... Demand is high elsewhere and he has other options so he can afford to set the price wherever he likes...greedy, money grubbing so and so... :mad5:
Integrity - adherence to moral and ethical principles; soundness of moral character; honesty ....an attribute that Bernie is sorely lacking in.