Let the blame game begin! You'd think with 100 million $ going into the economy they could have found a solution.
While I agree in principle, at the end of the day it all boils down to $$$. If the race brings 100 million into the region, then there should be enough political will to find a solution: The government could subsidize the race to some degree (and end up with a net profit or at least a zero/zero situation) and raise a temporary tax on all the hotels, restaurants, taxis etc for the race weekend to come up with the money Bernie is asking for. A GP weekend in Montreal costs me as a fan somewhere between a thousand and two thousand dollars. Would an increase of e.g. $ 100 make me turn away? Hell no. I don't know what the $ difference was between Ecclestone and the organizers, but $ 100 increase on taxes would create about 10 million. Let the government throw in another 10 million and I'd think that should patch the gap. The same situation applies to Indianapolis btw.
that's a hundred million in projected revenues. Not profit. I imagine the profit is more like 25-50m. but i don't really know.
That was my point, too. You're already heading into a GP weekend knowing you'll be spending that much. A little extra is acceptable. It's the first couple grand that's holding me back at the moment
I realize that. So let's say they make a 10% profit, that's 10 million, which is what I suggested the government throws in as a subsidy. The town/area *LOVES* their Grand Prix for many reasons, economic, fanwise and prestigewise giving them a world renowned link back to their "motherland". So even if they come out zero/zero financially, there are still plenty of reasons to do it. Bernie charges currently around 30 million per GP. I'm sure the organizers make 10 million on the race. Add another through a temporary tax and another 10 as a subsidy. I'm sure it'd work out financially, but probably some egos got in the way. As usual.
Fact is: - funding for many other programs is being cut; - the various gouvernments are investing enourmous amounts in our crumbling roads and infrastructures; - the economy (in general) is going to the dogs; - lately we've had a few too many scandals involving misuse of public funds. Bottom line, government funding for the GP would be a VERY hard sell at this moment.
Plus...more and more people (here) are asking themselves: "when is it time to say when? How often (and how far) are you willing to bend over for Bernie and his wallet?" Even I am beginning to the realize that the world does not revolve around F1. So for the time being, 2009 is history. 2010? Who knows.
Revenue for the Montreal race tops out at $80,000,000. I can't imagine the race costing $50,000,000, so that's 30,000,000 left over for business and government alike.
Well if the promoter is $30M in debt; and the race is almost always a complete sell-out, that points to expenses being too high. What's the biggest expense? The sanctioning fee. Follow the money - it leads back to Bernie....that's where the problem starts... Kevin
with Montreal's mayor suggest Bernie's sticking on his exorbitant demands. Seems to me like the money is still on the table... let's hope the little man accepts it as his apparent divorce could be costly!!
Here you go folks; get ready to be pissed off. Details from the press conference: Bernie has flat out refused the offer that was made by Canadian Goverment. Bernie wanted 31 million for 2009 with increases the next 4 yrs till 2013, with the 2013 GP would be for 38 Million. Bernie was not flexible and also demanded a letter of guarantee of 175 million for the next 5 yrs by the banks or from the Goverment. Goverment stated that that Bernie profits from all the sponsorship that is on the track and from the Paddocks in the pit area all goes in his pocket. The Goverment offered Bernie 21 million per yr and offered Bernie 75% of ALL the profits which he flat out refused. Guy Laliberte (Owner of Cirque De Soliel) and the Gillette Group (Owners of Montreal Canadians Hockey team) were willing to help with the marketing, but were not willing to do it if they would be in a deficit. Also local restaurants and Hotels were willing to increase their taxes to raise 5 million in order to help keep the Grand Prix here. Goverment decided not to continue negotiations due to Bernies inflexability.
F-ing little troll, why doesn't he just go ahead and put all races in asia or the middle east. That seems to be what he wants. I hope his soon to be ex wife takes him to cleaners.
Wow, BE really is grinding here. He has to play catch up for signing everything over to his wife and she now wanting a divorce. OTOH I can't imagine that he doesn't have some other off shore accounts that are hidden.
To me the bigger concern is; is the Canadian GP done for good? Seriously - what promoter would ever agree to Bernie's terms? The government probably won't step up with everything else going on... Kevin
Let Bernie take F1 to Asia and to the sandy countries. With SPA, France, Canada, probably a couple more "founding" circuits left out, and the FIA squeezing the manufacturers more and more each year, the conditions are ripe for another series to develop. I won't miss the politically compromised, commercial nightmare F1 has become.
Sounds like negotiations have completely ended: A real pity. No Canadian GP. No French GP, and probably no British GP soon. What next?
But at the same time, if they can invest in the race to infuse tourism money into the local economy, all the better. But it sounds like Bernie is the biggest hurdle. Well, so to speak...
I heard on the news this morning the FIA wanted $145 million to allow the Canadian GP to happen in 2009. Way to go, Bernie.
Sounds like they are both posturing. Sad part is the weekend would cost us US based fans less - stronger dollar, cheaper gas costs. Probably would have been 20% cheaper in '09 - more money for go karting and other discretionary things which benefit the host city and organisers. Really unbelievable that that dweeb can't see the forrest through the trees.
