Oops, I just "dated" myself. Long Beach brings back some horrible memories: I was watching live on TV how my countryman Rega got paralyzed in a horrible crash. Something that's today less likely to happen thanks to safety improvements. So maybe I shouldn't refer to Long Beach as "the good ol' days"...
I happened to count the GPs I attended and next year I'll have to celebrate # 25. I guess therein lies some good and bad news.
No argument there. You would have liked some of those memories as they included MS victories. Whereas for me watching Alan Jones win was one of the happiest days in my life. And that happened twice.
Hello,We went by the track Saturday and saw a lot of progress.About 40 heavy equipment machines operating and lots of dump trucks constantly coming and going.Crews working on the pagoda and the southside grandstand is framed. The AStatesman said yesterday that a primeseat will cost $5500 for the personal seat license and $1250 for the season ticket.The seat license is good for 15yrs and cost between $1500 and $5500.The season tickets range from $375 to $1250.All 29 permanent suites have commitments.There are 40 temporary suites and 35% have commitments.
Seeing him there was an extremely good sign. McCombs is getting old, and if you learn about him, you could see why he would want to make this work as one of his great big legacy accomplishments. He is a car guy in the end and at his age and with his wealth you stop worrying about certain things that people are complaining about in here and instead just get the job done no matter what it takes or what the nay sayers are saying.
Was it your first time visiting the site? What did you think about the construction as compared to the photos you've seen on the web?
Talked to a Buddy today and he said the Ferrari Club will have tickets in May for $700 ea,hes getting 4.The construction is really moving along at a tremendous clip.I also know that the pause a few months ago was a ruse to pressure local land owners into conpitulation.The race is ON.Anybody thats want a place to park a motorhome or travel trailer contact me,I have 930acs close by to park at and there is NO CHARGE to stay on my ranches!
So they paused a $400MM project, scared their investors, took a beating in the press and lost time on their already improbably-short-and-reduced-in-scope timeline just so they could "pressure local land owners into [sic] conpitulation"? That doesn't make sense or pass cursory logical review. The reported story is more accurate - they were in a financial bind, were unsure if they were going to get the deal with Bernie to hold the F1 race, and halted construction due to financial constraints.
What's your take on their finances now, Mike? If it is true that they're building at a frantic pace, where did the money come from? Do they have enough to finish? What do you think?
Yeah, the troubles that happened 4-5 months ago were fairly well documented in the media. I will say this, for the 1 year that Tavo headed up the project, I saw nothing much happen. In the 4 months after he was "out", I've seen an incredible amount of construction. Tavo may have been the guy with the Formula 1 knowledge, but I think he was in over his head when it came to actually executing such a big project and closing the deal on the state funding. I mean, what else had Full Throttle ever produced? A crappy website? At least the remaining CotA guys seem to have money (or at least can get it) to build something, although their lack of F1 knowledge hurts. I suppose both sides of the partnership had their flaws, but Tavo couldn't execute. Maybe CotA without him can, maybe not. We'll see I guess.
BTW, my take on the finances is that Epstein is getting construction financing similar to what he might obtain for a housing project or office tower. He figured on having 20M cash in the bank (from the equity partners) and a way to show they could make an income when the venue is complete. Then, he'd get loans (probably higher-risk type from private equity firms) using the land and completed facility as collateral, with the money in the bank for 6-12 months of payments. As is typical with these kinds of loans, the lender would pay the general contractor directly -- they couldn't use it for salary and incidentals. So you could see why obtaining the state money for the sanctioning fee was so vital. Without it, non-construction related expenses shoot through the roof. Add to that what they are being asked to front for roads ($6M)... which they can't borrow for, again, because they wouldn't own the asset.... well, there are a lot more incidentals than they ever planned on. So they cut back the project scale, got some additional unconventional loans from investors, and they are somewhat back on track. However, I really think they have to have 2012 happen to make it work. They have to be able to show the state and local officials that tax receipts really did increase by a huge amount -- then it will be hard for the state not to pay them the METF money (especially w/o NJ that first year). Again, just my speculation. I really no nothing about the actual facts, I don't think very many people do.
I have no inside info at all - but looking at it from the outside... I have no doubt the money is available if they want to use it. McCombs and Epstein have the coin to do the project themselves. I think where they have been running into issues is getting other people to pay for it - which is one of the most important tasks for a big investor (i.e. don't risk your own capital). I bet it's like any other project that costs metric tons of cash. They are looking at it and wondering how on earth they are going to see an ROI. And they have lots of people with their hands open looking for money. Tavo wants $8MM for his piece of the pie. The town wants some millions for road work. MotoGP/Tavo wants some millions for their race. And I bet the bills for construction are quite a bit higher than they expected. So I think the easy money just isn't there. The "let's sell this to investors and they can pay for it" isn't happening, and the reduction in scope is a reflection of the cost and how much of it is coming out of the original investors pockets as much as a reflection of them being behind schedule on construction. In other words, I think they are looking at the project now and taking an "Ok, do we *really* need to do this part now, or can we push that off to later?" attitude, because the numbers aren't working nearly as smoothly as they figured when they started this venture. I think the numbers are going to look a lot worse in a year or two. If they get the project done in time for November, I think ticket sales are going to be unremarkable, and the stuff they are cutting out is going to get a lot of attention in the press - along with hotel room issues, ingress/egress issues and such. Then, the next year, NYC comes along and marks the final nail in the coffin.
People that do construction "every day" have a pretty good idea of "what things cost", Mike. There's not much way things (concrete, or copper for instance) can go "way out of budget", as you propose. Those commitments are locked in in with vendors before the ink was dry on th contract for construction. The county is the roads, not "the City"...that is why you had the County official 'weighing in" with her opinion, on things.... Realistically the FCA package may not be a bad way to go, for members/owners to hold the line on ticket cost. I hired one of the bands for our party, after hearing them play at Amanda's Sorority House Saturday....R&B, with a horn section, but they did some modern rap/hip hop, to get those young booties shakin'!!!
You are right tho, they are blowing ticket sales, with this whole long term "15 year" approach....that might work with a sports franchise like a football or baseball venue, but auto racing?? Don't think so.....
I was in Phoenix for the F1. Great race but lousy venue and hardly anyone showed up. The track was just UGLY looking. Looked like amateur hour. I hope they never do another street event like that again (in some ugly downtown parking lot!) But, I saw Senna and Alesi battle it out and that was all worth it!
Phoenix never got local support, the downtown businesses were PIZZED at the way track construction was handled, and blocked pedestrian access to their venue/business. Dead on Arrival. That was a five year deal also.....!!!!
LOL!!!! I completely forgot that! I think it lasted 2 if I'm correct. I still remember the cars had to go around the manhole covers on the track AND there was a change in height at one point as they ran from the street and over parking lot. Man, it was ugly.
Yep! 2 years and flat line..... An old friend of my Lovely First Wife is out there...lawyer/judge..I did not attend. I have a hat/t shirt somewhere...Iceberg was the title sponsor IIRC..
