US GP in Austin Discussion and Speculation... | Page 120 | FerrariChat

US GP in Austin Discussion and Speculation...

Discussion in 'F1' started by Simon^2, Jul 5, 2010.

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Now that Austin is on the official FIA calendar, will the race really happen?

  1. Yes, it will happen.

  2. No, no way for construction to finish.

Multiple votes are allowed.
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  1. Simon^2

    Simon^2 F1 World Champ

    Oct 17, 2005
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    I agree with you completely RE the mfg.'s / and the engines... however, the sponsors would likely want exposure to the US market.
     
  2. 4rePhill

    4rePhill F1 Veteran

    Oct 18, 2009
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    Is it just Me or is anyone else getting a sense of Deja Vu here?

    Were there no lessons learned from the whole Donnington fiasco?

    Lets look at the details:

    1) Promoter announces big plans for an amazing future GP and MotoGP venue. ✔
    2) Promoter announces big commercial interest in project. ✔
    3) Circuit owners start construction work on circuit. ✔
    4) Promoters and circuit owners have disagreements. ✔
    5) Part way through circuit development promoters deny there are financial issues. ✔
    6) Promoter finally admits to some contract and financial issues. ✔
    7) Construction work stops part way through due to contract and financial issues. ✔
    8) Announcements are made that race may be delayed by a year. ✔



    Mmmm...., That all seems to sound very familiar!


    Now the only things yet to happen in this latest case to complete the cycle are:

    1) The Promoter gives up on GP idea and owes a lot of money to various people.
    2) The race get cancelled and never happens.
    3) The Circuit owners are left with partially built circuit that's of no real use to anyone.
    4) Bernie gets a race where he really wants it to be. (NY in this case).

    I'd say these two posts cover it nicely:

     
  3. Simon^2

    Simon^2 F1 World Champ

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    http://houston.culturemap.com/newsdetail/11-19-11-23-29-why-formula-1-failed-tavo-hellmund-bernie-ecclestone-and-the-clash-of-super-rich-egos-houston/

    Tavo admits COTA was way behind schedule and couldn't be ready for a june 2012 race date.

     
  4. Simon^2

    Simon^2 F1 World Champ

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    Here's a printed transcript from Tavo's thursday press conference.

    http://www.racintoday.com/archives/31639

    I find it hard to believe Tavo is so in the dark regarding all issues financial.

    I also find it impossible to believe that he doesn't know what the current sanctioning fee offered to COTA is.

     
  5. DF1

    DF1 Three Time F1 World Champ

    #2980 DF1, Nov 19, 2011
    Last edited: Nov 19, 2011
    MikeSRT had the construction piece nailed all along......'behind schedule'. That means money. "The project has been underfunded. That’s not a surprise to anyone."

    BigTex what do you see happening in TX about this?
     
  6. WCH

    WCH F1 Veteran
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    Mar 16, 2003
    5,186
    Anyone else find Tavo's interview amusing? Especially where he says that he offered to buy out Epstein and McCombs? I would love to have been in the room when that offer was made.
     
  7. brian.s

    brian.s F1 Rookie
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    I know Chris Pook has a big smile on his face.
     
  8. Sellnit

    Sellnit Formula Junior

    Mar 22, 2010
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    Yeah I made an offer too, my college pals and I broke our piggy banks, they said they would not accept coins......
     
  9. Simon^2

    Simon^2 F1 World Champ

    Oct 17, 2005
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    I e-mailed them offering to buy the COTA sign. A friend has a small go-kart track on his property,... I was going to give it to him. No response,... yet.
     
  10. brian.s

    brian.s F1 Rookie
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    A good one to have alongside the USF1 toaster,
     
  11. Simon^2

    Simon^2 F1 World Champ

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    Just set the DVR to record Speed Report and Wind Tunnel... curious if they have Varsha / Hobbs / Matchett on to discuss the Austin situation...
     
  12. Axecent

    Axecent Formula 3

    Oct 15, 2008
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    #2987 Axecent, Nov 20, 2011
    Last edited: Nov 20, 2011
    And then there will GPWeek's article about the demise of COTA written by..............PW.



    Yeah, him.
     
  13. BigTex

    BigTex Seven Time F1 World Champ
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    We build starter tract homes on it and sell them to the illegals.
    That is where we started.....
     
  14. speedmoore

    speedmoore Formula 3
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    Apr 15, 2003
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    $100M plus spent by last August. I'll bet money on the fact that they will work it out.
     
  15. BigTex

    BigTex Seven Time F1 World Champ
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    I feel the same David, that's a heck of a lot of cash burn to let a Sanctioning Fee stop the show.

    But in case you have not chatted with a banker lately, money is "tight"!!!! :D :D :D
     
  16. DF1

    DF1 Three Time F1 World Champ

    If they wait a year, and NJ/NY F1 goes well and the sad and bad taste this has left in people's mind Im not sure this will fly or be a big hit. Bernie all but saying its dead and defacto backing the NJ race as the preferred choice.

    They need to sort this fast. The public has a short memory and F1 is not a sport that has permanent traction in the US. They will be climbing a steep hill.

    They have done zero marketing and the news of late is all bad. Not a strong position to begin with. Id say in fact, they are starting over. The issue with the state is also a huge drag on this.
     
  17. DF1

    DF1 Three Time F1 World Champ

    Wow. That would make an interesting Plan B!
     
  18. Simon^2

    Simon^2 F1 World Champ

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    David,

    Not arguing, just asking... what is the source of that number?

    I'd also be curious of the breakdown... any money spent on land isn't really spent. It's just money in dirt form, but still a recoverable asset.

    I think it really comes down to,... is the project viable w/o the METF money?

    They had money trouble when the METF money was guaranteed,... now that it's no longer guaranteed... the situation must be considered worse, correct?
     
  19. iamthesimpleone

    iamthesimpleone Formula 3

    Aug 23, 2005
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    No less guaranteed than originally allocated. It's just not going to be dispersed a year in advance.

    Besides, next budget they pass, they could appropriate more funds to be put in the trust fund to cover any increase in Bernie's fees. All they have to do is have the tax revenue increases to back it up....;)
     
  20. stever

    stever F1 Rookie
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    Isn't the dispersal now(maybe before, too)a function of realized taxes from the event?
     
  21. stever

    stever F1 Rookie
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  22. BigTex

    BigTex Seven Time F1 World Champ
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    It was Plan A actually, the TRACK is Plan B!! :D :D :D
     
  23. BigTex

    BigTex Seven Time F1 World Champ
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    #2998 BigTex, Nov 23, 2011
    Last edited: Nov 23, 2011
    It's a little more convoluted than that.....as I understand it, it's tax credit to "the event" in recognition of "other sales tax" generated within the State.

    Maybe someone could explain that better?

    The trouble is that it will be diluted attnedance figures once NJ race is on line, but that would have been the case anyway over the ten year period.

    Tavos deal with Bernie never had an exclusive "only one in America" stipulation, that has ever been mentioned.
     
  24. Simon^2

    Simon^2 F1 World Champ

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    My understanding based on Combs comments last week are that the entire METF issue will be revisited if and when reapplied for. And that after the race, calculations will be made to create the amount of moneys that could be reimbursed. And that is if the event is deemed eligible...

    The bigger issue is,... Combs seems to have backed away from this rattle snakes nest. She is a political creature,... and the political fortunes seem to have changed (at least for now,...).

    As I've said before,... I don't know how any politician stands up and says,... lets give $25M of tax payer money to Bernie Ecclestone to get a GP in Austin when the taxpayers of the state of New jersey didn't pay a penny...

    The tide could changed again, but I'm not sure anyone is willing to bet another $325M on it. (400M - 100M spent +25M sanctioning fee). The words, throwing good money after bad come to mind.

    Now, could this latest squabble all be about Bernie trying to get a larger fee out of COTA than originally contracted to Tavo? Sure. But if they (COTA) had the $25M they would have just paid it, and not risked losing the contract. They certainly weren't getting a lower fee. There is no sensible reason why COTA wouldn't have paid Bernie his money to keep the project alive if they had the money. Remember,... if you want to believe this is all just negotiation,... this fabulous business acumen cost them at least $25M of state money this year,... and up to $250M over 10 years I don't believe for a second Red McCombs or Bobby Epstein are that dumb.
     
  25. iamthesimpleone

    iamthesimpleone Formula 3

    Aug 23, 2005
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    Yes. if they went with the METF, the comptroller was going to be able to pay out in advance based on her projections of what tax revenue the event was going to generate...

    Just because it is possible, doesn't mean it would happen. If someone is going to complain about "giving $250 MM to build a race track". Might as well, shoot for $350MM to build a race track; They're always going to complain.

    It would be deemed eligible, because if they can't get the money in advance, they can apply through the events trust fund if they wanted to

    I don't see where the controversy is. If they don't get the tax credits, they aren't going to build the facility; the State doesn't get the tax revenue either way.
     

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