US GP risks 'penalties' for failure

Organisers of a United States Grand Prix risk penalties if the race does not go ahead in 2012.

That is the warning of F1 chief executive Bernie Ecclestone, who more than a month ago announced a 10-year contract for a race in Austin, Texas. The contract, with promoter Tavo Hellmund's company, involves the construction of a purpose-built circuit.

But given a lack of details so far, and the famous Indianapolis Motor Speedway's failure to make the US GP a success, some pundits are sceptical about Austin's bid. For example, the source of the bulk of the funding is a mystery, with Ecclestone revealing nothing more than that the backers are from the US.

It has also been suggested that 2012 is an overly optimistic race debut date, but Briton Ecclestone insists it will take place then.

"That's what the contract says," he said. "It might turn out to be expensive for Tavo. We've got some penalty clauses, although I wouldn't want to use them."

Ecclestone said he is confident Hellmund's project will succeed.

"Until he doesn't [succeed], we won't know," Ecclestone added. "You might say I couldn't run the 100 metres in seven seconds, but until I try, you don't know."

http://en.espnf1.com/f1/motorsport/story/21905.html

 

That's the most recent discussion, in the other thread on the Austin Texas GP............

 

If you need a stick to make it happen, it can't be that good.

 

Between USF1 and this new "US GP" I'm starting to wonder if this is some sort of plan by NASCAR to scuttle any interest inF1 stateside..

 

I was thinking the same thing.

 

It is a win/win for Bernie no matter what:

- if Austin happens, he gets richer and has fulfilled his obligation towards the teams
- if Austin fails, he gets richer and has fulfilled his obligation towards the teams

It sure sounds like another Donington in the making. Hopefully the Austin people have deeper pockets than Donington (I believe they do).

 

Pipedream springs to mind.......

 

This is either Bernie trying to pressure another track in Europe to come up with more money OR pressure on Indy.... OR his way of saying to all the teams ... I tried and it does not work... so you cant complain to me.

 

I heard it was a mere $10MM if they failed to deliver timing wise. No big deal......probably better than most Vegas action as gambling goes. Consider the upside.

 

Here we go again...

 

Strange analogy to use... because we all know he damn well can't! Why do I think Bernie is having a little fun with that analogy?

If the planned track site isn't fenced off by now,... with major survey work in progress... no way in hell is this going to happen.

 

My thoughts exactly. Comparison to something else which obviously can't happen is very interesting.

 

IMO the odds of this happening within two years is nil.

 

if the objective is not possible, why do these seemingly smart business guys engage in a fruitless activity. who are the money winners? promoters w/ investors standing on the sidelines shouldering the losses? i do not understand this way of business. is it a scam from the getgo?
ed

 

The guys at Montecito (sp?) seem to think they have a valid shot still as well. Either way the US needs a GP sooner than later.

 

I have lived and worked in the area nearly 40 years and I must respectfully disagree.

I believe you've greatly overestimated the probability of success.

 

We've had five days of rain from the Hurricane, so it's definately behind schedule!!!!

 

..underestimated....

But he's right there's a LOT of pieces to fall into place....better go "fabric" on the roof, like the Woodlands Pavillion...

No time, for any of the fancy Renzo Piano precast!!

 

My supposition...

Bernie was under pressure from the FOTA teams to deliver a USGP. It was part of what they demanded of him to return to the FOM fold. This puts Bernie between a rock and a hard place. He delivers the Canadian GP which placates them a little. As for the USGP, he knows there is $$ in this country and the USA can afford to pay him like Bahrain or Malaysia... he doesn't want to settle for less. But the only track in the USA that can host the race is Indy. Indy knows that, and they will only do it if it makes financial sense (they can turn a profit). This pisses Bernie off.. he is used to gov'ts fawning over his show and subsidizing it. He has FOTA on the other side telling him he needs to deliver a USGP.

He tries to play hardball with Indy, throwing out a NYC GP, a New Jersey GP, a Montecito GP - nothing is working... the folks at Indy are sticking to their guns. He has to accept their demands or go nuclear. He goes nuclear... he takes the option of putting together a race that will never happen. Giving the rights to some unknown guy.

If the hail Mary pass works, the unknown guy gets a lot of $$$ out of it, so of course he's game. Bernie can tell FOTA it's a real plan for a real race. He can also secretly negotiate with Indy at any point until the Austin GP is officially dead and have a stronger hand against Indy.

It's all a sham. There will be a future USGP, but it won't be in Austin, it will be in Indianapolis. Bernie is just "negotiating".

 

In general I agree. As I said earlier in my post, it is a win/win for Bernie. He'll get richer either way and the FOTA monkeys off his back.

That said I have been told that the people behind the Austin offer have really a lot more cash than e.g. the Donington fools. So there is a chance this comes to fruition.

At least that's what I'm hoping and I'm arranging my travel schedule accordingly.

 

If it does happen, I'll be on the phone for tickets (and recommendations on hotels). Austin looks beautiful.

 

+1

Texas is a very cool state to visit as a tourist. I only hope they don't hold the race in the middle of summer. Chances are it will take the spot of the Turkish GP, so it'll be early June. Already pretty hot in the Lone Star State.

Anyway, if it happens I predict the biggest FerrariChat Reunion ever.

 

Did ANYONE think Bernie would go into this and NOT be guaranteed money one way or another? Folks had to put up deposit money to have a race - they didn't just pencil in a race - they don't race, he keeps the deposit monies.

 

As soon as they post the date, BOOK IT. You can cancel it later if you need to.

 

I don't understand this.
I was at the last few F1 races @ Indy. Lots of PAYING people, the last one (2007) was PACKED.

the biggest "failure" was that of the Michelin tire "issue"

Sure, you can say Indy is not a cosmopolitan city, not as sexy as many of the other places, but a "failure"? Failure to do what? Give Bernie a few extra Million USD? Exchange rate was bad at the time?