56 replies to this topic

[Johnny D]

 

The future of Formula 1 in Austin, Texas appears to have taken a serious hit when it was revealed Circuit of The Americas lost its state funding.

 

According to a Wednesday story in The Austin American-Statesman newspaper, Gov. Greg Abbott’s office rejected COTA’s annual application for reimbursement following the 2018 F1 race. Officials in the governor’s office said track representatives failed to meet the deadline for submitting a required human trafficking prevention plan as part of their reimbursement request.

 

It means the track will forfeit $20 million or more in state funding through the Major Event Reimbursement Program. The state reimbursed COTA $27 million through that program in 2017, $26 million in 2016 and $22.7 million in 2015 for the only F1 race in the United States.

 
More Formula 1!

 

Track officials have said in the past that funding, which has topped $100 million since 2012 according to The Statesman, was critical to the success of the F1 race.

 

COTA officials had not yet commented to The American-Statesman.

 

Since it debuted in 2012, Texas has helped subsidize F1, which carries a hefty seven-figure sanction fee.

 

The American-Statesman also said the governor’s office has paid millions to Texas Motor Speedway for its annual NASCAR race, the 2018 NCAA Final Four and Super Bowl LI. The NTT Data IndyCar Series is set to make its track debut March 22-24.

 

Payments to COTA are reportedly based on how much economic activity the F1 race generates for Texas and it’s estimated 175,000 attend the race.

 

According to an October 2018 letter from the governor’s office that was obtained by the American-Statesman, the Circuit Events Local Organizing Committee (CELOC) missed a deadline to submit a required anti-human trafficking report 30 days before the 2018 U.S. Grand Prix this past October. Bryan Daniel, the governor’s executive director of economic development and tourism, wrote that because CELOC failed to meet the deadline, its application for reimbursement had been rescinded.

 

“In this case, the law is clear that if a human trafficking prevention plan is not submitted 30 days prior to an event, a reimbursement from the Major Events Fund cannot be issued,” Abbott spokesman John Wittman said in an emailed statement. “The State of Texas and COTA have a productive partnership that has had a tremendous economic impact on the city of Austin and the state as a whole, and our office is already working with COTA on next year’s race.

 

The governor’s office gave preliminary approval for providing state funds for the US Grand Prix on Sept. 24. But after economic development officials there realized they had not received a human trafficking prevention plan, the rescinded approval, the letter said. The plan was due on Sept. 19, but COTA did not submit the plan until Oct. 3.

[mhiggins10]

COTA issued a statement saying the plan was in place for all of 2018 (check their Facebook page). Seems the governor was looking for a way not to pay- this is a tricky tack excuse (though, I'm sure, legally solid enough to at least not make an initial payment). It'll end up in the courts to decide.

[Johnny D]

So it may turn out like Utah ?

https://www.utahmoto...rts-campus.html

 

Maybe hosting of the olympics will solve all their problems.

https://www.business...r-budget-2016-7

 

J~

[LarryKing]

I have yet to see a first draft of the Spec Miata report on puppy juggling prevention.

[LarryKing]

Private sports venues should not receive taxpayer support. Goes for stadiums, arenas, race tracks, Amazon hubs, etc.

[Jim Drago]

Private sports venues should not receive taxpayer support. Goes for stadiums, arenas, race tracks, Amazon hubs, etc.

Larry
Your girlfriend AOC would be proud of that post

[LarryKing]

I would think a fiscal conservative would like my post. 

 

The cost-benefit analysis studies generally do not account for the full costs of the proposed subsidy. It's a "benefits-only" analysis. Increases in tax revenues linked to these sports facilities rarely, if ever, equal taxpayer subsidies. Only the facility owners and politicians benefit from these deals.

 

My question is what does a race track have to do with human trafficking prevention?

[Jim Drago]

My question is what does a race track have to do with human trafficking prevention?

I had the same thoughts? That was very strange

[Jim Drago]

I was informed that human trafficking is a huge problem at all of these large events like super bowl etc. I am assuming prostitution etc?
So it seems like a very valid request to put in place especially if they are getting 20 million a year

[LarryKing]

I knew there was a reason

[Bench Racer]

It must be catchy down that way. Mexico has cut their F1 state funding after 2019.

[EricJ]

If COTA's business model is not successful without corporate welfare, then maybe they should get a new business model. As a Texas tax payer, I'd rather the $20M spent on salaries for more teachers.

[Steve Scheifler]

...
The cost-benefit analysis studies generally do not account for the full costs of the proposed subsidy. It's a "benefits-only" analysis. Increases in tax revenues linked to these sports facilities rarely, if ever, equal taxpayer subsidies. Only the facility owners and politicians benefit from these deals.
...

I’m always highly skeptical, but I haven’t seen the projections and calculations. And it’s never, ever just a matter of direct $$ and math. Like it or not, elected officials place a lot of value on things perceived to improve a city’s overall image as a place to live, work and visit. Whether courting convention business, tourism, corporate headquarters, concerts or hollywood film crews, Austin has gone all-in on being seen as a hub for cool stuff. Everything feeds everything else so you can’t place a simple $$ figure on any one thing.

Not saying I’d be in favor or against if I lived there, but if I cared I’d probably get more information before making a lot of noise either way.

Likewise the Amazon deal. I’m not saying it was a good deal for NY, I frankly don’t know, nor does almost anyone voicing an opinion. In all of my memory I’ve seen/heard a lot of stupid shit from people in positions of power and influence, but none more telling than AOC’s blindingly, stunningly, ignorant comment about what they can now do with the $3B tax break Amazon won’t be getting. I had to replay it a couple times thinking “did she really just say that?”, as if the money exists at all without Amazon. (Unless she has a secret plan to have someone else move into that space and employ 25k people in the immediate future with no incentives.) Between that and her fantasies about a green new deal she is not only on the distant fringe but the hopelessly ignorant fringe.

[Bench Racer]

If anyone has interest in $ political buying, keep track of the Wisconsin Foxconn $4.5 billion with 13,000 jobs, maybe.

[LarryKing]

Shoot, with $20M you could buy, like, 4,000 feet of wall.

[Cnj]

Private sports venues should not receive taxpayer support. Goes for stadiums, arenas, race tracks, Amazon hubs, etc.

Your facts are sketchy. The Texas Major Events program is NOT paid for by tax payers. It’s simply a tax abatement/give back from the tax revenues that are generated BY the event. No schools, police, etc are losing their income because of this. Put more simply, if the large sports events did not happen, then the revenue would not occur to generate taxes. It’s not a zero sum game.

CNJ

[Steve Scheifler]

Your facts are sketchy. The Texas Major Events program is NOT paid for by tax payers. It’s simply a tax abatement/give back from the revenues that are generated BY the event. No schools, police, etc are losing their income because of this. Put more simply, if the large sports events did not happen, then the revenue would not occur to generate taxes. It’s not a zero sum game.

CNJ

So the theory of economic impact goes, but you want to talk about “sketchy”, try digging into the details. Again, I have no knowledge about this particular case except what I’ve just learned here, but it sounds like an actual check is written and that certainly doesn’t come from funds collected directly from a particular event. Very different then from a tax abatement, right? Here the city levies addional “tourism” taxes on hotels and such, is the money coming from something like that? In any case, however they are funded it seems extremely unlikely that the major event program can collect anywhere near $20M from revenues generated by a single F1 weekend. But as I said, it’s never anywhere near that straightforward.

[Tom Sager]

Likewise the Amazon deal. I’m not saying it was a good deal for NY, I frankly don’t know, nor does almost anyone voicing an opinion. In all of my memory I’ve seen/heard a lot of stupid shit from people in positions of power and influence, but none more telling than AOC’s blindingly, stunningly, ignorant comment about what they can now do with the $3B tax break Amazon won’t be getting. I had to replay it a couple times thinking “did she really just say that?”, as if the money exists at all without Amazon. (Unless she has a secret plan to have someone else move into that space and employ 25k people in the immediate future with no incentives.) Between that and her fantasies about a green new deal she is not only on the distant fringe but the hopelessly ignorant fringe.

 

Maybe getting too far into the weeds here but my wife was throwing stuff at the TV about 3 weeks ago regarding all of the fawning AOC coverage.  I told her "don't worry, at the rate she's going it's only a matter of time until she lights herself on fire."  Amazon lit the match. 

[Johnny D]

https://www.cnbc.com...-so-simple.html

 

J~

[Waterboy]

If COTA's business model is not successful without corporate welfare, then maybe they should get a new business model. As a Texas tax payer, I'd rather the $20M spent on salaries for more teachers.

deleted because CNJ explained it perfectly