What's wrong with Texas?
#1
Posted 11-16-2011 11:45 AM
Game over for the U.S. Grand Prix and the Circuit of the Americas
http://www.autoweek..../FREE/111119900
Texas World Speedway is up for sale???
http://www.hfflp.com... Flyer.pdf&DT=1
Toby Linder
powered by X-Factor Racing
#2
Posted 11-16-2011 12:03 PM
2011 National points champion!
WWW.MOTORSPORTHEAVEN.COM
#3
Posted 11-16-2011 12:12 PM
If true about the F1 track, that is a shame since it would be nice to have seen V8 Supercar and F1. But doesn't surprise me too much. Big $$, even bigger egos. If he didn't like the deal with Ecclestone before the NJ announcement, he better get ready to get bent over now if they want a race.
James York
sponsored by:
Stan's Auto Center, Lafayette LA
powered by:
East Street Racing, Memphis TN
2003 Spec Miata
#03
#4
Posted 11-16-2011 05:26 PM
- State of Texas agrees to put up $ 25,000,000 in advance to secure race date
- Gov. Perry announces he's running for President
- Gov. Perry's primary support is from Tea Party
- State of Texas withdraws agreement to put up $ 25,000,000 in advance
Ole Gov Perry may play a dummie on TV , but you can bet the farm on him being smart enough not to invest $ 25,000,000 in taxpayer money into a Bernie Eccelstone F1 deal during the presidential primary season.
I kind of wish Perry would have let it happen , I'd pay may share of the $ 25,000,000 just to watch the media circus
#5
Posted 11-16-2011 07:26 PM
Jim
East Street Auto Parts
Jim@Eaststreet.com
800 700 9080
#6
Posted 11-16-2011 07:53 PM
All the C.A.V.E.s (Citizens Against Virtually Everything) are rejoicing now. I hope to see them very disappointed in a few weeks.
Steven Holloway
Artist formerly known as Chief Whipping Boy for Lone Star Region
#7
Posted 11-16-2011 08:06 PM
#8
Posted 11-16-2011 08:20 PM
#9
Posted 11-17-2011 01:34 AM
I bet it all works out and they will be racing there next year.. Lots of games at play here
Jim
I wouldn't count Red Mc Combs and CotA out yet. The event trust funding isn't pulled, they just won't get it until after the event. Word is Tavo Hellmund who held the F1 date tried to power play Mc Combs and Bobby Epstein, two powerful business men. Tavo had the race, but no money. I'd bet a call was made to the state and now those funds are no longer available to Hellmund. Mc Combs could easily fund the event. Rumor mill in F1 is that Hellmund had a $25 million deal a year and when Epstein approached FOM the price went up to $35 million. Mc Combs and Epstein called BS and have stopped the deal. Ecclestone would be one in a long line of people that have under estimated Red Mc Combs. He's ruthless. Ecclestone's fortune came from one thing, the sale of the commercial rights of F1 (twice) to people that overpaid and are now heavily leveraged. OTOH, Mc Combs has several diversivfied interests and terms of wide scale business saavy has much more than Ecclestone. Ecclestone doesn't like to be confronted, but he's never dealt with a hard core Texan before. Until the WMC meets in Dec I wouldn't call the date off just yet.
- john mueller likes this
#10
Posted 11-17-2011 08:15 AM
Because we are passionate about racing I think we over-estimate the general interest in motorsports. The average person has no idea what F1 is, and if they think about racing at all NASCAR comes to mind.
I'll believe this event will happen when I see it - Same goes for NJ.
#11
Posted 11-17-2011 09:08 AM
I'm no high powered businessman like McCombs but it sure seems like Eccelstone has the leverage here. F1 has no shortage of tracks or countries that want a track and a race. Circuit of the Americas has spent 40 M according to the article, that all gets flushed if the F1 contract is not delivered. It sure seems like McCombs needs Ecclestone not Ecclestone needs McCombs. If Circuit of Americas was set up as a limited partnership and McCombs/Epstein are the general partners and put in the customary 10%, they will be less likely to protect 4 million in a negotiation vs 40 million. If I was a LP in the venture, I would sure have my attorney sending love letters to the GP right about now.
The 25 million fee is a true stumbling block if the state will not committ to funding after the first race. If it isn't ever going to happen then that is a huge expense for the partnership to eat each year for 10 years, almost doubling the investment required.
Always thought the state funding anything was a bit odd, Perry is not the fiscal conservative that he proclaims to be, if there is a chance of lining his pocket post political career he will make a deal that makes no sense for the state, see the NAFTA Super Highway that started but never finished.
Personally I hope this works out.
#12
Posted 11-17-2011 09:15 AM
I thought the same thing. Eccelstone probably couldn't care less about having a race in the US. F1 has never been very popular, and he has plenty of other potential suitors willing to pony up the $$$. I am sure it's his way or the highway on this.
But, like you, I hope this track and event happens.
James York
sponsored by:
Stan's Auto Center, Lafayette LA
powered by:
East Street Racing, Memphis TN
2003 Spec Miata
#03
#13
Posted 11-17-2011 09:38 AM
Bernie is nuttier than a fruitcake if he thinks I'll pay $300 + to attend a race, and the State of Texas would be nuts to pony up $25 mil to host a race.
#14
Posted 11-17-2011 10:57 AM
Michael,
I thought the same thing. Eccelstone probably couldn't care less about having a race in the US. F1 has never been very popular, and he has plenty of other potential suitors willing to pony up the $$$. I am sure it's his way or the highway on this.
But, like you, I hope this track and event happens.
My only fear is with the NJ/NY apparently happening... It is no secret that Bernie has always wanted NYC deal for a long time.. Hopefully it will all work out... Lots of tracks built in last 10-15 years that were run a few years and dropped..
Jim
East Street Auto Parts
Jim@Eaststreet.com
800 700 9080
#15
Posted 11-17-2011 11:11 AM
The money comes from a Major Events Trust Fund designed to bring major events (sports, music, etc.) to Texas. It has been used in the past to attract the superbowl to Dallas and the NCAA Final Four basketball tournament to Houston. In each case, state taxes collected due to the event (sales, hotel, alcohol, rental cars) are used to pay the $$ from the trust fund. It's no give away from the state, just a reallocation of tax revenue to encourage major events to come to Texas. All in all it's designed to be revenue neutral for the state.
The issue has become that they were already promising the $25 million before the race has been scheduled. Now they are pulling back from that and sticking to the facts, which are that money will only be provided based on the economic impact of the event. FWIW, the 2011 Superbowl in Dallas received over $26 million from the state. However, with the Bernie show, you're never entirely sure the event will happen until it actually does...
#16
Posted 11-17-2011 11:43 AM
Toby Linder
powered by X-Factor Racing
#17
Posted 11-17-2011 02:47 PM
I'm no high powered businessman like McCombs but it sure seems like Eccelstone has the leverage here. F1 has no shortage of tracks or countries that want a track and a race. Circuit of the Americas has spent 40 M according to the article, that all gets flushed if the F1 contract is not delivered. It sure seems like McCombs needs Ecclestone not Ecclestone needs McCombs. If Circuit of Americas was set up as a limited partnership and McCombs/Epstein are the general partners and put in the customary 10%, they will be less likely to protect 4 million in a negotiation vs 40 million. If I was a LP in the venture, I would sure have my attorney sending love letters to the GP right about now.
The 25 million fee is a true stumbling block if the state will not committ to funding after the first race. If it isn't ever going to happen then that is a huge expense for the partnership to eat each year for 10 years, almost doubling the investment required.
Always thought the state funding anything was a bit odd, Perry is not the fiscal conservative that he proclaims to be, if there is a chance of lining his pocket post political career he will make a deal that makes no sense for the state, see the NAFTA Super Highway that started but never finished.
Personally I hope this works out.
The money from the state comes from tax revenue generated by the event. If it doesn't generate the offset, funding would be eliminated or decreased. Under TX the fund could only be used for this purpose. IOW, they couldn't decide to spend it on teachers, etc. No one blinked and eye when the fund gave Jerry Jones
I think the idea that the track wouldn't be built if there was no F1 date is a bit of a stretch. In fact I go as far to say that it's more of a break even or loss leader, much like most of the other Grands Prix. Without having to homologate to FIA circuit Grade 1 and provide FOM mandated media, hospitality and garage facilities the cost will be reduced and they are likely, probably guaranteed to make more money with Moto GP and the other forms of racing. Miller has done alright without a GP, as well Barber and many, in fact all road circuits in the US have done well without a GP. F1 needs the US market for the sponsors far more than the US needs to hast a GP.
Dave
#18
Posted 11-17-2011 04:27 PM
F1 needs the US market for the sponsors far more than the US needs to hast a GP.
Dave
How would one additional race in the US signficantly change the exposure of F1 sponsors stateside? All present 18 races (or is it 19?) are broadcast in the US, but we both know, the viewership of F1 is tiny in terms of sporting events. Unfortunately, the US audience attention span is mostly held by crashes, violence and sex. Wise marketing dollars are spent toward the more cavemanish type events.
James York
sponsored by:
Stan's Auto Center, Lafayette LA
powered by:
East Street Racing, Memphis TN
2003 Spec Miata
#03
#19
Posted 11-17-2011 07:05 PM
How would one additional race in the US signficantly change the exposure of F1 sponsors stateside? All present 18 races (or is it 19?) are broadcast in the US, but we both know, the viewership of F1 is tiny in terms of sporting events. Unfortunately, the US audience attention span is mostly held by crashes, violence and sex. Wise marketing dollars are spent toward the more cavemanish type events.
It's been no secret in F1 that the sponsors and the big teams want a US presence to activate sponsorhip. The big money at the track doesn't come from fans as much as it does, in terms of profit margin from Paddock Club and sponsor hospitality. The same is true to various degrees in all forms of big time motorsport. As an example the US is Ferrari's largest market. We're still the richest market in the world and many still want a piece of it, regardless of economic climate right now. It's been sponsors and teams clamoring to get back to the US even though the F1 footprint here is smaller than for example, western Europe.
#20
Posted 11-17-2011 07:38 PM
James York
sponsored by:
Stan's Auto Center, Lafayette LA
powered by:
East Street Racing, Memphis TN
2003 Spec Miata
#03
Also tagged with one or more of these keywords: Austin, Grand Prix, Circuit of the Americas
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