- US Grand Prix
Ecclestone on verge of scrapping Austin Grand Prix
ESPNF1 Staff
November 16, 2011
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Bernie Ecclestone is ready to call the US Grand Prix off © Press Association
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Bernie Ecclestone has said he is prepared to scrap the 2012 US Grand Prix in Austin after revealing there is no longer a valid contract to run the race.
It emerged this week that construction at the brand new circuit had ground to a halt amid contractual dispute between promoters Full Throttle Productions and the Circuit of the Americas (COTA). But Ecclestone has now revealed to the Press Association that the original race contract, issued to Full Throttle Productions, has been cancelled and that he is waiting on COTA to prove it has the money to pay for the race before he issues another.
"We've done everything we bloody well can do to make this race happen," Ecclestone told the Press Association. Asked if it could be dropped ahead of a meeting of the World Motor Sport Council on December 7, where the 2012 calendar will be ratified, he added: "Yes, it will be, for sure, 100%."
"We had an agreement with Full Throttle Productions," Ecclestone explained. "Everything was signed and sealed, but we kept putting things off like the dates, various letters of credit and things that should have been sent, but nothing ever happened.
"Then these other people (COTA) came on the scene, saying that they wanted to do things, but that they had problems with Tavo. They said they had the circuit, and that they wanted an agreement with me. I told them they had to sort out the contract with Tavo, which they said they would.
"But that has gone away now because we've cancelled Tavo's contract as he was in breach. We've waited six months for him to remedy the breach. He knows full well why we've cancelled. He's happy. But these other people haven't got a contract. All we've asked them to do is get us a letter of credit.
"We are looking for security for money they are going to have to pay us. That is via a letter of credit, normally from a bank. If people don't have the money they find it difficult to get the letter of credit, and so we don't issue a contract."
Part of the funding for the race fee was supposed to be coming from the Texas Major Events Trust Fund, but state comptroller Susan Combs revealed on Tuesday that the $25 million set aside would only be made available after the race.
"Let me state clearly: We have not paid out any money for the Formula One event," she said in a statement. "The only dollars that can be spent on the United States Grand Prix are tax revenues attributable to the successful running of a race. The state of Texas will not be paying any funds in advance of the event. Further, as is the case with all METF events, each application will be reviewed and analyzed for its likely economic impact and only after the race occurs would any funds be disbursed."
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ESPNF1 Staff
Money problems and scandal in F1, wow who'd have thought it?
Posted byWith so many places to run a f1 race in the US, why must choose a new yet to be built/finish track. Invest in road atlanta! Bring back Indy! Etc! As for letters of credits issued by banks....speaking from personal experience....good luck! Even asthe banks do secure all the funds on a frozen account for the duration of the bond terms, risk management wont allow it to be issued! Banks just dont want any risk anylonger! Good luck finding someone that knows LC's!!
Posted byCOME ON BERINE BRING THE GRAND PRIX TO SOUTH AFRICA YEAH
Posted byIncredible thoughts you guys have... Nowhere in the article was mentioned about race in NY. You guys should run a future teller's shop. Learn to manage and hey FIA is not a not-for profit organization. If you want the license then you have to pay the fees and if you WON'T pay the fees then run your own cars there... Just like, if you want to run an organization in the state of Texas you should have a permission from fire department, police, etc. and for these permissions you need to pay a FEE...
Posted byNow, where are those individuals who were saying Indian Grand Prix wont happen...hahaha Everything from race contract to construction is a part of successfully running a Grand Prix. Now, you guys got an answer in your own words... I wonder what more EMBARRASSMENT you have to face???
Posted byI've been looking forward to the Austin race since it was first talked about. I geared next year's vacation around the fact that I would be attending. Disappointing to say the least.
Posted byIt's likely that Bernie knows darn well that he won't be able to get away with Two F1 races in the USA. Now that he's got a 10-year deal with New Jersey, he probably is looking for a way to dump the Austin race. There is LOTS more money to be made in a race in the metropolitan New York market than down in Texas.
Posted byYes, the man obviously has no clue about how to run a multi-billion operation like F1 Sarcasm aside ... I sure would hope the US GP @ COTD will go on, since it looks like a great circuit. But you really can't blame Bernie for doing his job. It's neither his, nor F1's problem if the people who need to make it happen make a mess of the contracts, and the business side of the race. But then ... I like Bernie :)
Posted byUGH, I hope the people in Austin can squash their beef with one another and get their act together. I've been waiting since the day they announced this race to go to it. I already have a way of getting in the race and a pit pass and everything. PLEASE DON'T LET THIS RACE GET AXED!
Posted byAndrew, you are not wrong but when Bernie comes out with a 'cast in stone' statement the opposite usually happens. Not long ago he vowed the BBC was essential to F1 in the UK and then sold half the races to Fox! There are probably some twists left in this story too.