2014 GP - New Jersey

Any update on the likelihood of this race happening next year? I drove much of the course this past weekend, although not where the garages are being built. It will be very interesting, as buildings and houses are VERY close to the roadway in certain portions of River Road and Boulevard East.

 

Found this interesting update:

SPEEDWEEK - New-York-GP: Termin-Konflikt mit US Open

Article states that the race is currently scheduled for the week after the Canadian GP (no surprise) but that this causes a conflict for NBC, which also airs the US Open golf tournament.

So there is now talk about moving the NY GP to the week before Canada. That would obviously be a logistical nightmare for the teams as it would only give them one week to pack things up from Monaco, haul it across the pond and set up shop in Montreal.

At any rate, the mere fact that NBC is having these discussions now with Bernie is IMHO a very good indication that this event is gonna happen.

Note to self: Need another hotel reservation

 

Ron Howard made a comment while Buxton was interviewing him prior to Monaco about hoping the NJ race would go through

 

If nothing else its a good sign about how NBC values F1.

 

I dont think NBC will choose F1 over golf, this was the story a year ago and nothing has changed.

 

A year ago Fox had the F1 rights, not NBC

 

but even a year ago it was known that NBC was going to have F1 in 2013 and thats why the race fell through for this year

 

Gotta beg to differ there..... It fell through because they didn't have a track! [Still don't it seems. Although, the Pygmy says he may step in.....]

Cheers,
Ian

 

Interesting anatomy of a corpse (well, I hope not).

IIRC the race didn't happen because the organizers didn't pay Bernie (and the track wasn't complete, but I think that is a smaller issue as there is much less to build).

So why didn't they pay? Because they didn't get the TV money from NBC, in which case Duck Hollywood has a point or did they simply run out of cash regardless?

However since NBC is apparently talking to Bernie to move the date, this shows me real interest and we know Bernie wants the race. So if the teams are willing to hurry up and go after Monaco, this just might become reality.

 

I guess they realized they couldn't get 'er done in time? Given that little issue, why pay!

Bernie gets NBC's money, not the track!

I'd love to see it. But a weeks gap between races half a world apart is a *big* ask. Particularly as it's Monaco.

I guess not even Bernie can get the US Open moved!? [Is he losing his touch I wonder? ]

Cheers,
Ian

 

I still believe construction isn't/wasn't the issue. The track exists. It's a matter of paving it over and build some pit garages. The US builds stuff really fast, they could have done that given enough $.

Oops. Yes of course.

Will be interesting to see how Bernie will put that peg through a round hole. All the races he is talking about, more events than dates in the calendar.

 

Indeed.

What a wonderful position to be in! Seems he's got entire nations lining up to host a race!...... No wonder he's a gazillionaire! [and made many others really wealthy along the way of course.]

Cheers,
Ian

 

Guys, the situation is as simple as it's always been : NJ hasn't happened (yet) because the business model isn't attractive enough to investors (yet).

The track still needs substantial investment dollars before it's viable. The asphalt still needs work ... serious, expensive work ... before it's ready. I'm not just talking about paving over a few potholes ...

Also, the costs associated with organizing, advertising, promoting and executing a street race every year are substantial. Grandstand rental alone is staggering ...

Then there's that pesky issue of who owns all the property around/bordering the track ... where all the grandstands, concession stands, porta-potties, etc must go.? If it's not under direct control of the track organizers/promoters ... would you invest in this venture?

Let's not forget that NO taxpayer/government funds will be used to support this track

Bernie can certainly help, by reducing his typical ~$25 Million sanctioning fee that he charges every other track (except Monaco, which is grandfathered-in). But for how many years will Bernie be happy leaving money on the table, money that he can easily get from any number of other new tracks (that have government support)?

The bottom line is this : F1 street races where Bernie gets his full sanctioning fee, and where government support ($$) is non-existant, are just not economically viable ... even with FULL attendance every year. And if the business model just isn't profitable with FULL attendance, all the glitz & glamour of NYC doesn't matter one bit.

I'd still love to see this race on the calendar. But, as i see it, several things need to happen before the business plan tips from negative to positive:

- Bernie makes substantial reductions to his typical sanctioning fee, reductions which are guaranteed-by-contract to last for several years.

- The track organizers/promoters demonstrate that they directly own, or at least control, all of the (significant) property surrounding the track.

- NJ finds some tricky loophole to get taxpayers to cough-up some dollars.

It's my working assumption that the race will get full attendance ... so the attractiveness of NYC as a destination doesn't "lessen" any of these concerns.

I hope it happens I'll be there for the first race, and (hopefully) many to follow ..

 

If that's the case I'm not sure I'd even call it a business model.

Texas surprised many so who knows?

 

Well, the Texas model is certainly different ... and long-term success in Texas is, of course, not yet certain. A purpose-built facility is a different model altogether ... MUCH higher up-front construction costs, naturally ... but investors at least have a tangible "asset" at the end of the day. You've got a year-round opportunity for generating revenue in Texas, and at least the possibility of government/taxpayer support.

Time will tell. If Bernie wants it to happen, he can choose to reduce or eliminate his sanctioning fee in New Jersey ... but for how long, will Bernie leave money on the table (that he can readily get from other venues)?

Plus, no matter what Governor Christie said, maybe NJ taxpayers will be "tapped" in one way, or another. For instance, taxpayer funds could be used for the necessary asphalt work, and maybe an argument can be made that it's not solely for F1 ... ??

 

the lack of a network TV deal in the largest media market in the world was a deal killer, it took to much potential revenue off the table. this is exactly what I heard from one of red bulls marketing reps last year.

I think their best bet would be to figure out another date later in the summer.

 

Remember where all the F1 TV revenue goes it never shows up on the balance sheet of the track owners/investors. Apparently, Bernie isn't willing to walk away form too much money, to make NJ happen

 

NJ ain't Monaco.
It's not going to get a Monaco style deal.

 

That's certainly the conclusion I've come to.

Bernie won't reduce his sanctioning fee dramatically to make NJ happen. And now it seems that he won't accept dramatic reductions in his F1 TV revenue to make NJ happen, either.

 

Tracks make income from ticket sales or from government subsidies.
NJ will not subsidize (at least not to the levels needed) and other interests own most of the areas grandstands would go.
You don't need a Bowmar Brain to do that math.

 

Pretty much how i've seen it for a long time now, and certainly from my first post in this thread.

 

Ah, thanks for that info.

 

You think Bernie's willing to give them a Monaco deal?

Start that sort of precedent and other tracks get ideas and CVC gets nervous.

Aren't the TV deals already in place?

 

AFAIK each track has an individual deal anyhow.

Also keep in mind Bernie is currently renegotiating the deal with Montreal. Coincidence ? I think not

 

Individual TV deals? As I understand it none, save Monaco, have TV rights.

No doubt that the Canadian race negotiations play a part.
Can you spell Donington?