I meant in regard to Bernie's race fee, which can be anywhere from 5 million (ok, that was a long time ago) to 25 million. What Monaco has is a grandfathered in price. No rising price etc. Absolutely. Bernie truly is a master of his game. He manages to have just enough irons in the fire at any given time to play the tracks against each other while negotiating a new deal. You don't like it Montreal? I'll set up a race in NY. You don't want to pay up Austin? Well, I was thinking about a race in Long Beach anyway.
Bernie can cut the costs for NJ but if the revenue streams aren't there is that enough to make it financially viable?
I'm sure it would be. The race in that location will be a sell out and they will also make a ton of money from concession and souvenir stands. That should easily set off costs for maintenance and setting up grand stands etc. That's how it works at every other temporary event/race around the country and they seem to be continuing doing it. Financially the real issue is whether it brings in enough to meet Bernie's fee or not and in all likelihood it won't. Pretty much all F1 races are loosing money against that fee but they are done because overall they provide a benefit to the region (revenue through tourism, tourism taxes, status, recognition etc). This article sheds some light on the these costs/finances: SPEEDWEEK Formel 1 - Formel 1 in Kanada: Montreal-GP vor dem Aus? It is about the negotiations regarding Canada as this year is their last year of the current contract (panic!). Some key points from it: - It is speculated that the fee for Canada is 15 million. - The government of Canada pays 5 million, the province of Quebec pays 4 million, 1 million comes from Montreal. - The remaining 5 million come from an organisation set up to support tourism in Montreal. That organisation is fed 30 million a year by a special hotel tax. - Canada obviously wants to keep its GP (and if you have ever been there you see how much it means to them in the sense of having a connection to their motherland France and its culture, which ironically abandoned GP racing). - Bernie now wants to automatically rise the fee by 5% every year (and allegedly in some races that's even 10%) and that's the part of the negotiations. - The author guesses however that Bernie does want more F1 in North America and therefore will give in to keep the Canadian GP along with a/some US GP.
The concern is that the organizers don't have enough seats to sell as the adjacent real estate is owned by others. Trinkets are profitable but without enough seat sales can the math work?
Oh come'on, this is the US. Anything is possible. My seats at the Monaco GP were on grandstands built "over the water": They extended the quais and made temporary platforms to put the stands on. If cramped Monaco can do it, I'm sure industrial New Jersey will find some parking lots to fill with grandstands. As for the debate over free riders or not. Well, sounds awfully familiar to my neighbourhood: Wrigley Rooftops make nice with Cubs; not too late to make it right
That's the big question, which I'm pondering on a daily basis (no exaggeration as I check NY hotel prices every day). Of course I want it to happen for next year but who knows. I'm flip-flopping on the answer. That's why I'm reading the tea-leaves in the news hoping to guess the correct answer and date. Pitty.
It was an unfair question. At this point not even Bernard knows for sure Ny nephew just got a three bedroom place in Riverdale so I've one less worry.
American GP secures F1 future | Planet F1 | Formula One | News, Standings, Results, Features, Video BOOM!
Interesting counterpoint from Pitpass; The complete story with (somewhat alarming!) pictures; pitpass - A New Jersey fairytale? Cheers, Ian
Mmmmm......... I seem to recall some similar news about another track back in May 2009 (From: BBC SPORT | Motorsport | Formula 1 | Donington plans given extra time ) "Donington Park secured a 10-year contract to host the British GP at the expense of current hosts Silverstone and is due to stage its first Formula 1 Grand Prix since 1993 in July next year." How did that one end again?............ Ah yes!......... Always remember, Bernie Ecclestone is: The F1 Transporter! "Rule number one: The deal is the deal! - you cannot change the deal!..............However, I can change the deal if I get a better deal from somewhere else!"
+1 *Fifteen* ****ing years! I guess they've also "agreed" (sic) to Bernie's usual 10% per year increase in fees.... Now, according to the reports, he's helped 'em out some, and we know he wants it to happen, but he's not gonna give it to 'em IMO. Cheers, Ian
While I hope it happens - NYC is much nicer place for a GP than Austin - my opinion - I just dont see it happening. The last area in the world that needs economic stimulus is the metro NYC area...however manhatten background would look cool in f-1. for bernie its all about the money FOM can make on TV and sponsor ads internationally. has nothing to do with fans and attendence .... the promoter rarely makes anything - unless its Bernie... he's last money in and first and all money out.
I strongly suspect that Leo Hindery (and Grand Prix of America) does not own or control most of the real estate surrounding the proposed track. So ... lots of the "construction" that's been happening is more likely the real property owners, building condos and retail shops in anticipation of an attractive event ... with no understanding of, or commitment to, the mechanics of a real race Factor in the major asphalt work still required and the complete absence of government/taxpayer support ... and the business model undoubtedly remains a "dud", even with full race attendance. Street races with no taxpayer support are doomed unless, Bernie cuts his fee ... anybody believe that Bernie is willing to walk away from ~$25 Million or so, for fifteen years just to have a Manhattan skyline? Not the Bernie I know ... I would still love to see it happen. I'll become a believer when I see real work happening on the asphalt.
Fantastic news as it eliminates an annual trip to Europe for F1. Travel logistics to NY are easy and cheap. Unlike Austin where they charged me $ 1,600 !
If you looked at pictures 1 year out from Austin's race, they would be considerably more "alarming". I became convinced NJ will happen after reading this interview from our local paper with Tilke engineer Christian Epp. He's always been straight up -- he doesn't talk in Bernie or promoter speak. Project manager: New Jersey F1 project about to ramp up | www.mystatesman.com (sorry it's subscription) Anyway, the gist of it was they are on location and seem to have been given the final "go" to proceed with construction. The thing that is still missing, I think, is of course the sanctioning fee check. Translating the Bernie-speak, announcing a contract = they've sent the invoice. Usually that is followed in 30-90 days with gentle Bernie prodding ("I don't think they have the finances in place") then he either gets his money or he doesn't. I think this time he does get the money.
I know Christian, and I agree ... he tells it like it is. I look forward to roadwork beginning in earnest
