http://www.autosport.com/
Not "scam", but "sham"..... We'll finish the track, it'll have IRL, MotoGP, who knows NASCRAP.......maybe some tire testing under contract....Kevin Schwanz's driving school... *shrugs shoulders* I mean to say, if I (personally) had held the contract, it would have been a focused TEAM effort with the financial backers, and also, quitters never win! So Tavo seems to have either alienated some key critical team members with his demands, or just let his alligator mouth overload his mosquito azzhole.... Hard to say which..... The Golden Rule: The guy with the gold, makes the rules.
You have a career in writing man....... Her role in all of this is "exploring deals"....and trying to make it happen. It's pretty much like the Superbowl or the Final Four. Business as usual, no sprained ankles
I would really say so, in this case.. Subgrade prep and pad stabilization is a major part....done. Highway modifications....done and TxDot said "never mind the bill".. Grandstands were a rental item all along, I maintain...a phone call away Timing and scoring/VIP/Garages are the "four buildings" that have been granted recent permitting, and would have alternative uses if the race does not gel. Might as well stand them up on the current permits and complete as "shell' for future build out (Red McCombs new Chevrolet dealership) Maybe our Austin dirt man can come back and talk about it if his contract is completed or cancelled.
They are going to make their track in New Jersey with folded paper and scissors?? You might want to ring up Carl Hass, he could look in his checkbook and tell you how much a Temporary Street Circuit costs, to plunk down in the middle of a major US city. Texaco Grand Prix of Houston 1998, 1999, 2000, 2001 You also keep sweeping up the value of the Track Facility. IIRC it was about $250M on premise, the rest of it being highway improvement, electric system upgrades, Tilke's fees and some take out barbeque from the Salt Lick. And those snazzy jackets! Austin Commercial will get paid and terminate the contract if that is what comes to pass.
Should be profitable with a few thousand IRL fans, maybe 10 tmes that NASCRAP, heck even 10K for an ALMS.............
Since there was a written letter from the state saying that the money would be paid on 7/31 (without any strings attached, as I see it), don't the organizers have grounds to sue the state for failure to abide by what was, in effect, a written contract?
I have to think that Epstein simpy ran the numbers and saw precious little return on investment and a huge out-of-pocket commitment. I could be wrong, but I suspect all new F1 venues exist entirely due to government money commitments with no need to justify a return on investment due to the event itself. China, India, Abu Dhabi, Singapore are all willing to pay the money for the image and panache they think F1 brings. Also, I bet that Epstein was not planning on using personal funds for all of the development, but leverage from still more investors and the prospectus just did not play out. Without a cash flow bridge from Texas to keep the ball rolling and allow prospective investors to see more tangible progress, the money has dried up. I also wonder if Tavo wanted a big bunch of cash right now to assign the rights and Epstein balked, what with other pressing cash needs, but that is pure speculation. I will say that I think the land goes fallow and no track is ever built there. It is not an oval and NASCAR already has too full a schedule and 'Mericans do not really care about domestic road racing enough for a venue lilke this to pay for itself. The only way any road racing track or race series is ever built in the US of late is if the backers (1) have the funds to do it alone; and (2) love motorsports and are willing to lose money for several years in order to have a motorsports playground. I know that is true of H2R, MSR, and Eagles Canyon in Texas and bet it is true of Barber, Miller, VIR, Pahrump and on and on. Epstein and McCombs are businessmen, not motorsports enthusiasts and this project is not for the former.
If that's the case, someone should foot the bill for regrading and taking the land back to more or less its natural state. As is, I would think it's going to be a a major mess if and when the rains finally return to central Texas.
I'm going to put a three bedroom ranch house on the apex of Turn 8...use the rest as my driveway.....
I think what happened here is that when the race date got moved from June to November, the new date fell outside the application date range "no sooner than one year prior to the event." Only after today, Nov 18 2011, would the application have been accepted for the race date in Nov 2012. The old timeline for the State sending money to Bernie got wiped out when they moved the race date. If they had even officially submitted an application for the June date, I can't recall if they had or not.
IIRC, they applied when the race date was in june, but the schedule was prelim,... so w/o a firm race date the terms of the METF weren't met. When the race date changed to 11/18/2012, the application was "withdrawn'.
What I don't understand is why Tavo is beating the "this can still happen" drum. If by his words COTA hasn't had the money for months,... now that METF money is not available until after the race AND IS NOT GUARANTEED,... how does this help COTA's bottom line? I also don't understand how 2013 helps with the finances either,... that's an extra year of interest on loans and no revenue.
Ecclestone has given them another week to come up with the $. http://www.motorsport-aktuell.com/automobil/ecclestone-gibt-austin-noch-eine-woche-4100681.html
That's my point. They couldn't come up with the money WHEN the METF was kicking in $25M,... how can they possibly get it in the next 7 days now that they can't rely on gov't moneys?
The only thing - and I mean the ONLY thing - on the other side of that equation is that they have perhaps close to an additional year to raise the money. But, if they couldn't do it with $25MM METF $$, a contract in hand, and the only (as was known at the time) USGP, then I don't see them being able to do it in the future. It was not a time issue, it was a ROI issue, as in, there was none. People are always in denial when their businesses crumble, so I am sure Epstein is no different. They are probably thinking that the down economy killed them, and with another year, things will turn around, and they will be able to haggle out a deal on the METF cashish. But, like someone using their credit card to make their mortgage payment for the month, all they will be doing is digging the hole deeper. When the day of reckoning comes, it will be even more formidable than it is now.
The problem with these kinds of deals is "the promote". Ecclestone pulls off the first $25MM/yr over the contract period, and another large part of the proceeds. And then it gets promoted from there. Gotta buy the land so that part gets securitization and preferential treatment on returns. Ball rollers come in next, receiving better terms because they are taking bigger risks. And the next investors are just betting on the come. Reaching the project finish line under these conditions is all about developing enough rotating financial mass through great PR, serious smoke blowing, and the all essential element AND Rule #1: DON'T STEP ON ANY LAND MINES! I figured that the only way this track was going to get built is if someone figured out how to get the bulk of the construction costs in stimulous money. Cmon....a $400,000,000.00 road racing track in Texas? Maybe in the shadow of a huge oil play, where royalty money comes from Xmas trees. Gotta get some of that Dewitt Co. oilly shale royalty money in the game. As mentioned before: Most of these tracks in the US come from sugar daddy's money where passion, and not ROI/ROR, drive the investment. I don't think the Barber museum can make a lot of return on that $50,000,000+ investment. And the track isn't making up the difference. Big dairy made that facility possible, through Mr. Barber and his love for motorsports and motorcycles.
His reputation is probably damaged and 'Full Throttle' has probably been moved back to 'idle'. Would you put your neck on the line for this guy as his only 'in' is a 'great' connection with Bernie?? Tavo is a not a 'player' from how this has worked out. Too bad Bill Gates or the late Steve Jobs were not also F1 fanatics. The US wouldnt have to endure USF1 and now this. Where is Slim in all this. Wasnt Tavo all good and friendly with him??
Guys, A bit TO but an honest question as I don't know. IS F1 REALLY a GOOD IDEA in America? I am not so sure. We already have plenty of racing of various types and they are expensive enough to maintain and attend. I get the overwhelming feeling F1 is like soccer, which will never compete against the BIG 3 (BaseBall, FootBall, BB). While writing this I may have stumbled on something cultural that MAY explain why F1 will never compete here against IndyCar/Cart, NASCAR, NHRA, etc. In every Hollywood flick that features a car chase, there is at LEAST ONE, "doorhandle to doorhandle" moment. The two antagonists essentially squaring-off against and sizing-up each other at high speed just prior to the violent cresendo. Oval track and straight track racing feature that scenerio in-spades. F1 almost never. Probably seems trival to the most reverant F1 fan here, but I think this POV has merit in the USA. A USA F1 event will be neat for a few, but I predict it will be a $$$$ LOSER in the USA for many years to come, if not forever. As mentioed above, if the backers are businessmen before car fans, this just ain't ever going to work. Or do I have it ALL WRONG?
Certainly, the U.S. does not need F-1. But, the engine manufactureres which participate in F-1 need to market in the U.S. as it still represents the largest economy in the world and has served as the reason Bernie has been dragged over here once again to begin with. There are manufactureres which think "Win on Sunday, sell on Monday", some with factories in the U.S., still applies. BHW
I am a big F1 fan, have attended several races over the years and would love a US GP. However, I do not see where the current engine manufacturers really need a USA race at all. Ferrari buyers will buy regardless and other than AMG, the average Benz buyer wants luxury, not performance. Renault does not sell in the USA and BMW, Honda and Toyota are out of F1 anyway. Unless Dodge, Ford and/or GM plan to get into F1, a USA race will not encourage any new buyers anyway IMHO.
