COTA allowed additional time to pay race fee

[Paul Jeffrey]

Formula One supremo Bernie Ecclestone has confirmed he will allow the Circuit of the Americas track in Austin Texas additional time in which to pay its race fee amid a recent reduction in state financial support.

Said Bernie Ecclestone to the Austin American-Statesman,

"We said they can pay late this year. They get money from the state, and the money from the state is late, so that's why they are late."​

One month on from the torrential Grand Prix weekend and with still no payment being received from the circuit, Ecclestone has confirmed he is happy to wait for the Americans to get their house in order.

Traditionally, a $30 million hosting fee is due to be paid three months prior the event being held, but with Formula One keen to get a strong foothold in the United States it seems that Ecclestone's usual strict rules are being relaxed somewhat on this occasion.

COTA received $25 million dollar payments from the state of Texas in 2012, 2013 and 2014, but this is set to be cut by more than 20 per cent for 2015, to around $19.5 million, despite an annual hosting fee rise.

Rumors continue to linger about the possibility of the F1 circus courting other venues across the United States but one struggles to see a suitable alternative capable of hold Grand Prix races in the immediate future.

 

[randMracer]

Well ain't that mighty nice of Bernie. He is such a swell guy. Here's a double scoop of ice cream just for you.
Oh wait....is that not chocolate ice cream? Would you like some more greed sprinkled on top? It makes the crap easier to swallow.

 

[mclarenf1papa]

The amount of money it costs to host F1 is ridiculous...it's why we no longer see the cars at tracks like Indy.

 

[James Cook]

These hosting fees are ridiculously high. More evidence that F1 is eating itself.

 

[Torcano]

Sometimes I wonder if Bernie would do the whole "I'm a Nigerian prince, give me your account details so I can tak... erm give you money" scams if he wanted to and pull it off. But then I realize he is doing a much more efficient job than you could ever imagine of basically the exact same thing. The fact that he is gonna do this even if it meant the ship would go down is a bit sad I guess.

While everyone is bickering about how he likes money I see him doing literally this.

(Yes, behold my epic photoshop skills)

 

[RichardHessels]

Still don't get why any organisation want to host a F1 race.. You can only loose money on it.

 

[led00m]

Why on earth do the circuits have to pay FOM to host a grand prix? Surely FOM should be paying the circuits to host them and use their facilities??

 

[thewarmer]

Seeing as the is state money too is even worse , there for tax payers money been wasted on a sport run & driven by rich elitist & their toys & dodgy deals.

Bernie & his friends have been running one of the biggest money scam ever seen.

Its no surprise none of the venues can make it pay when all the money is traveling in one direction.
All the time its like have your cake & then have more & more Mr B & co can not loose no matter how my tracks go bust their is always another willing victim or how my F1 team go by the by .

Bernie then gets the rules re-written to his own laws & rule as he is above the this planets laws anyhow as we all know.

He as sucked all the good things out of the sport and turned into a black-hole to make money.
worst thing that ever happened to F1 was Bernie's take over.

 

[Andrew Harper]

There are very few grand prix that actually make money. British Grand Prix being one (the last time I read anyway, correct me if I'm out of date on this one). Monaco (not surprisingly) is another.

The Far East want them soooo much because of the glamour factor, they lose millions every year but some are state funded. I would love to see the Mexican finance books though, that place was packed every day.

I remember when the Hungarian Grand Prix was the only race they ran there every year, God knows how they survived so long. Marlboro money maybe?

I hate to think the millions that went into the Abu Dhabi Grand Prix each year. I went a few years back, branded back pack with t-shirt, cap, programme, lots of freebee vouchers. Entry to Ferrari world, free concerts every night, lots of entertainment which is all specially built for the event. Fake beaches at the track! lol. Simply unreal.

The one event I always feel sorry for is Turkey, fantastic track, great venue, no money, dropped like a stone from the calendar. Now it's a used car lot

 

[Deleted member 130869]

Why on earth do the circuits have to pay FOM to host a grand prix? Surely FOM should be paying the circuits to host them and use their facilities??

A few countries do so to be in the line of sight of the world as a new business "powerhouse", others to portray strength. $40 million on their expenditure is nothing.

 

[led00m]

A few countries do so to be in the line of sight of the world as a new business "powerhouse", others to portray strength. $40 million on their expenditure is nothing.

Doesnt make sense. My guess is in club racing, or at least in the case of track days, you pay a fee to rent the track out. Surely this whole pay me to come to you system is the source of so many of F1's problems?

 

[Philip Heck]

It used to be like that but when F1 started to become super popular during the 90's every track wanted to host a race, so Bernie started taking money for F1 to come to them...

 

[Deleted member 130869]

Malaysia began the state-funded stuff in order to show the world they were a prominent business opportunity country. It has worked for them and they've been adamant about it, you can find a couple of news articles.

 

[Terry Rock]

Greed knows no bounds.
While I realize the state will make some money and gain a few thousand temporary jobs from hosting, that price is way too high.
By the time they overcome that fee and start trying to make a profit, there won't be much left.