I doubt they have $400MM worth of investors. Seeing as how they put the deed up to secure $250MM. What I'm guessing is happening, is there was probably an equity buyout arrangments between Tavo, and the COTA people, and he's trying to exercise that option, and they don't have the $$ to pay.....
Ben, are you coming to the dark side??? You have been the point man in the "money is no problem" cheering section. BTW, do you know anything about construction over the last few days?
As I stated some time ago, this has always been a plan to sell a plan for a profit. Since they dont have the $$ to pay, or dont want to pay the US again looks like amateurs as the fans suffer. Pathetic. No wonder NJ/NY came up so fast. Bernie again is the star/expert making things happen. If this comes off and a race is run in Austin, its not because it was well planned thats for sure.
Not quite yet. I just never thought the whole project was a sham. they have money; the question now, is it enough? Hopefully Epstein secures some more funding, or someone else steps up. nope.
Just for clarity, not a single one of us ever said they had NO money. The question has always been if they have enough money that they intend on spending on this.
http://www.austinpost.org/content/f1-gentleman-stop-your-engines-we-were-duped-0 Don't Say We Didn't Tell Ya So We were duped. At least many racing fans who never questioned the public subsidies and the decision-makers were, (sans the two dissenting members of City Council.) It wouldn't be the first time Richard Suttle strutted into City Hall on behalf of out of town developers promising the moon, the sun and the stars, and city leaders became all googly-eyed, only to find out not a sunspot, a moonbeam nor starlight were actually on the table. But in this case, when the public actually got wind before Council voted on the "risk free" deal, we had a couple of shots to convince them that supporting F1's lust for public monies was not the best thing since sliced bread. Many, many people brought many, many well-researched facts before Council showing there was plenty of reason to slow the train down. Council, except for two members (Laura Morrison and Kathie Tovo), chose not to listen to reason...to caution...to the public. $250 million of Texas public funds are on the table, spread out over 10 years (plus $4 million in a local contribution, which Circuit of the Americas, "COTA," says they'll pay--we'll see). With $15 billion in budget cuts this past legislative session, one would think the City of Austin wouldn't so foolishly jump into an arrangement putting all Texans in harm's way. Besides some community members dismantling many of F1's "facts" and figures, it should have been evident something was going to blow up in our face based solely on who we were dealing with: F1 CEO Bernie Ecclestone, for one, who loves him some "efficient" Hitler --and is fond of bribing folks to avoid paying taxes. Local attorney and former Judge Bill Aleshire said: Those of us trying to convince our state comptroller not to pay the $25 million F1 Texas tax kickback recognize the sad irony that Mr. Ecclestone testified that he bribed a German bank official with $23 million in order to avoid a tax audit. Painful irony. Hiring Richard Suttle as their local go-to man should have been Clue #2 this was a shady deal, and that all their "hurry hurry hurry! offer ends soon!" b.s. was just that: b.s. to get their hands on public monies before anyone was the wiser. Jabs from Jersey As we are finding out, a New Jersey race in 2013 had long been secretly in the works and was being negotiated for June that year. We were never going to have a June race in 2012 or any year thereafter (yet that was the reason Council had to quickly approve contracts that weren't yet written), and it's now questionable we are going to have a 2012 race at all, as noted by Autoweek: "There might not be an F1 race in Texas in 2012, and there might not be a track for the series to race on." With the internal strife in COTA and Hellmund's bitter departure, delays in construction, rumors of construction workers going unpaid, the track may not just be delayed - it may not be built. If I were an investor, I'd be pulling out right now. (If it goes unfinished, should we rename it the "Intel Memorial Racetrack"? Maybe we can turn it into a dirt bike park.) New Jersey Gov. Chris Christie is laughing at us right now...laughing all the way to the bank...for our promising millions in public funds to these people. He knew he didn't need to offer any giveaways to get his race, and pointed that out in his F1 announcement as a not-so-subtle jab at Texas. So unlike the deal we agreed to, NJ isn't using any public money to pay F1 fees and they are getting reimbursed for public expenses and they are keeping any and all sales tax proceeds. If only we had skilled policy makers like that around these parts. Meanwhile, we were negotiating investing much-needed state dollars under the false premise that we'd have the exclusive rights to the only F1 race in the US, such that we'd be rolling in tourist dollars. Ooops! Don't Worry! Steve Sexton said their "funding is secured..." Ehhh...not so much. The Major Events Trust Fund money isn't in the bank quite just yet. They haven't turned in their application to the Comptroller's office. They can't, as they have to do it within a year before the event (Nov. 18 would be the earliest they could, IF anyone still believes at this point the event will happen at this time next year). It will be in December that the World Motor Sports Council votes to formalize the dates of races - so they shouldn't apply until after that happens. All that aside, it may not be legal for the Comptroller to grant them the METF money if there's a competing event in the US - which there now is. If they go after it, and Combs grants it, and somene sues over it, that too will cost us all money we don't have. Never Too Late to do Right Although we spent $13.5 million on water/wastewater (and were duped on that too), and we spent a good deal of staff time and energy on this deal with the devil, it's not too late to fix this. The City has not yet signed, that we know of, the "events support contract" (it should have been in a publicly announced COTA meeting) that would officially sanction F1 being eligible for funds from the state coffers, as they need a local host. That doesn't address other requirements, however. Now is the time for us to cut and run. Cancel the interlocal agreement we signed, and let COTA figure out how to pull this off. This should not be on the public's back. Now is the time for LEADERSHIP. Wipe the egg off your face, Austin officials, before it hardens into a permanent, smelly mask.
Two people at this table believe in urbane, international Austin, $400 million ain't nothin', Red McCombs and Don't Mess With Texas. Image Unavailable, Please Login
Combs: No METF funds before the race http://www.texastribune.org/texas-taxes/comptroller-of-public-accounts/combs-taps-brakes-formula-one-racing/ Another source... http://www.statesman.com/blogs/content/shared-gen/blogs/austin/racing/entries/2011/11/15/comptroller_no_state_funds_for.html?cxntfid=blogs_formula_austin
Autoweek says Susan Combs will not fund the $25 million any sooner than race day (but I am a bit behind the above post for completeness) : http://www.autoweek.com/article/20111113/F1/111119950 The prospects of the United States Grand Prix in Austin actually happening suffered a blow on Tuesday when Texas state comptroller Susan Combs confirmed that no state funds would be paid out in advance of the event--if they are paid at all. Combs, who visited the 2009 British Grand Prix and met with F1 boss Bernie Ecclestone, has been a keen supporter of the race from its inception. She has fought off any criticism of public money being used to fund an F1 race. The race was built around the expectation that the state's Major Events Trust Fund would pay an annual sum of $25 million, which would, in effect, cover the sanctioning fee collected by Ecclestone. The trust-fund rules were adjusted to allow the F1 race
http://www.statesman.com/blogs/content/shared-gen/blogs/austin/racing/entries/2011/11/15/developers_suspending_construc.html To the sound of Taps playing... [ame]http://www.youtube.com/watch?v=Wn_iz8z2AGw[/ame]
Ok, I just switched teams. If the $25 million (and remember, it's actually 250 million!) really isn't there, this thing is dead. I hope they at least finish the track, so we have a new LeMons/Chumpcar/NASCAR playground
This is a Mexican Standoff (to those watching at home) With apologies to any legitimate Mexicans in the room... In one corner Tavio tries to outbluff the opposition that HE is in charge, because "he has Bernie's contract"...."leave the briefcase there on the table, non sequential bills, I'm leaving for Acapulco" In the other corner Red and the Hedgies say "we know about money, because we actually HAVE some!" Stay tuned.... It isn't about the $25M, that's State TAX money and they'll pony it up when they see an event that cash flows into Texas. (It's really a reimbursement or subsidy, depending on how you view it) Yeeee Haah! Bring that Red Bull car back, I didn't get chance to drive it!
Tavio is back to being Tavio.........IMO he didn't stick it out to "see" if the race event is profitable, he's sticking all the risk to the track investors..asking for a buyout this early. NOT nice. He's (trying to) bail out before the mission is over....in the case of Houston the track builder and race promoter were in fact the same entity (Newman/Haas) The way Tavio has structured this reflects his lack of business experience, IMO.. Maybe Red's attorneys can line him out on the finer points....
That's just the MAJORITY partner ($400M) of the venture flexing muscle..... Tavo tried to rob them early for a payout, and they are now saying "oh Yeah???" Let's flip it around....what's Tavio's 'deal with Bernie" worth WITHOUT a venue to hold it?? That was Bernie's point he was trying to get across, in London. Stay calm.....don't panic.
Tex, I think this has been going on behind closed doors for the better part of 2011. Once this devolved into public blame and finger pointing everyone loses. Your MAJORITY partner ($400M) lost $25M upfront money today. Pretty crap business move if you ask me. Pretty dumb if it's just "chest thumping" (flexing muscle) if you ask me
Who rights letters to Bernie? He doesn't have an email address? Try [email protected] I bet it will go straight to his blackberry.
Most likely so.......I have wondered the whole time about Full Throttle Productions. It's an empty storefront that should be cash flowing ticket sales by now (again going from the groundwork required for the Houston race which was a TEMPORARY street circuit) but otherwise required the same support logistics. I'm not sure what the timing of the States money has to do with anything really they have not 'lost' it only now it's not prepaid but post event....again a negative move to the cash flow model but not a deal breaker. I'm sure all concerned had hoped to be "happily married" as Bernie put it. But I assure you that this "stop work" by the Track Owners is pure theater......they cannot do that more than the Rain Day variance in the Contract Schedule before they trigger a deluge of Change Requests based upon schedule alone. Luckily for them we are 50% behind normal rain day count here, it's been dry as a bone. That's all the float they have without spending money... Anybody know much about this Hedge Fund guy???
No panic as the NJ/NY race laughs all the way to the bank and Texas looks...well alot like the smileys you posted. Rather silly.
It ain't over 'till it's over..... The NJ Track runs around a Waste Water Treatment Plant for NYC........have you ever toured a Waste water Treatment Plant???? They have their own special aura........
