Ecclestone - Austin Race Set To Be Called Off
#1
11-16-2011 | 02:20 PM
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Ecclestone - Austin Race Set To Be Called Off From SPEED TV:
F1 chief executive Bernie Ecclestone says the Austin GP, scheduled for next November, is on the verge of being cancelled...
F1 chief executive Bernie Ecclestone says the Austin GP, scheduled for next November, is on the verge of being cancelled...
Bernie Ecclestone has confirmed that the US GP is on the verge of disappearing from the 2012 calendar – and that nobody holds a contract to run the race.
In essence, the final deadline for any kind of resolution is the FIA World Motor Sport Council meeting in India on Dec. 7.
Speaking to Ian Parkes of the UK’s Press Association, Ecclestone admitted that the race would be dropped if there was no solution in the coming days: “Yes, it will be, for sure, 100 percent.”
Ecclestone also confirmed that Tavo Hellmund’s Full Throttle Productions no longer holds a contract to run the race, because it has been cancelled. Circuit of the Americas' Bobby Epstein has thus been in negotiation over a totally new contract, rather than an acquisition of the one held by Hellmund.
“We had an agreement with Full Throttle Productions,” Ecclestone told Parkes. “Everything was signed and sealed, but we kept putting things off like the dates, various letters of credit and things that should have been sent, but nothing ever happened.
“Then these other people [Epstein and COTA] came on the scene, saying that they wanted to do things, but that they had problems with Tavo.
“They said they had the circuit, and that they wanted an agreement with me. I told them they had to sort out the contract with Tavo, which they said they would. But that has gone away now because we’ve cancelled Tavo’s contract as he was in breach.
“We’ve waited six months for him to remedy the breach. He knows full well why we’ve cancelled. He’s happy. But these other people haven’t got a contract. All we’ve asked them to do is get us a letter of credit.
“We are looking for security for money they are going to have to pay us. That is via a letter of credit, normally from a bank. If people don’t have the money, they find it difficult to get the letter of credit, and so we don’t issue a contract.”
The big problem is that the race no longer has any guarantee of receiving $25 million from the Texas Major Events Trust Fund, which was to have funded the sanctioning fee due to Ecclestone and the Formula One organization.
In essence, the final deadline for any kind of resolution is the FIA World Motor Sport Council meeting in India on Dec. 7.
Speaking to Ian Parkes of the UK’s Press Association, Ecclestone admitted that the race would be dropped if there was no solution in the coming days: “Yes, it will be, for sure, 100 percent.”
Ecclestone also confirmed that Tavo Hellmund’s Full Throttle Productions no longer holds a contract to run the race, because it has been cancelled. Circuit of the Americas' Bobby Epstein has thus been in negotiation over a totally new contract, rather than an acquisition of the one held by Hellmund.
“We had an agreement with Full Throttle Productions,” Ecclestone told Parkes. “Everything was signed and sealed, but we kept putting things off like the dates, various letters of credit and things that should have been sent, but nothing ever happened.
“Then these other people [Epstein and COTA] came on the scene, saying that they wanted to do things, but that they had problems with Tavo.
“They said they had the circuit, and that they wanted an agreement with me. I told them they had to sort out the contract with Tavo, which they said they would. But that has gone away now because we’ve cancelled Tavo’s contract as he was in breach.
“We’ve waited six months for him to remedy the breach. He knows full well why we’ve cancelled. He’s happy. But these other people haven’t got a contract. All we’ve asked them to do is get us a letter of credit.
“We are looking for security for money they are going to have to pay us. That is via a letter of credit, normally from a bank. If people don’t have the money, they find it difficult to get the letter of credit, and so we don’t issue a contract.”
The big problem is that the race no longer has any guarantee of receiving $25 million from the Texas Major Events Trust Fund, which was to have funded the sanctioning fee due to Ecclestone and the Formula One organization.
#7
11-16-2011 | 03:35 PM
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From: New England
Have you seen the episode where Jeremy and the boys go to the "South" I can only imagine the conversation started off with..... Now listen here boy....we done things a lil' different round these parts..... ::Bernie rolls eyes: ... and we're out...good bye america
#8
11-16-2011 | 03:36 PM
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Joined: Jul 2009
Posts: 1,580
From: Connecticut
Here's another article about this: Work at Austin suspended amid race contract dispute | Formula 1 | Formula 1 news, live F1 | ESPN F1
Work at Austin suspended amid race contract dispute
Construction work at the Circuit of the Americas in Austin has ground to a halt, casting fresh doubt over the return of the US Grand Prix in 2012.
The event is scheduled to take place on November 18 next year at a purpose-built track outside Austin, but statements from key officials this week have revealed that a contract to hold the race is not yet in place. A statement from the circuit said construction work has been suspended "until a contract assuring the Formula One United States Grand Prix will be held at Circuit of The Americas in 2012 is complete."
"We have spent tremendous resources preparing for the Formula One and MotoGP Championship races, but the failure to deliver race contracts gives us great concern," Bobby Epstein, founding partner of Circuit of the Americas, said. "We believe the United States is vital for the future of Formula One and its teams and sponsors. Given the purpose-built Tilke design, creating a unique fan experience and iconic challenge for drivers, we hope that Texas will not be left behind. Over 100,000 fans have expressed an interest in purchasing tickets for Formula One alone."
The news followed a statement from Texas state comptroller Susan Combs raising concerns over the event and confirming that no state funds would be spent on the project until after the race. Combs' comments are significant as organisers were banking on $25 million from the Texas Major Events Trust Fund (METF) to help cover the cost of the sanctioning fee. In the statement Combs admitted fresh doubt had been cast over the Austin project after news that a second race will be held in the USA in 2013.
"The recent announcement of an annual Formula One race in New Jersey is a concern, as additional races have the potential to reduce the number of attendees to a Texas race, thereby decreasing the economic impact," Combs' statement read. "Additionally, the reports of a slowdown in construction at the Circuit of the Americas, and recently publicized disagreements between the race rights-holder and the circuit developers have prompted speculation about whether the Austin race will even occur. The ongoing controversies are a concern and we will continue to monitor them.
"Let me state clearly: We have not paid out any money for the Formula One event. The only dollars that can be spent on the United States Grand Prix are tax revenues attributable to the successful running of a race. The state of Texas will not be paying any funds in advance of the event. Further, as is the case with all METF events, each application will be reviewed and analyzed for its likely economic impact and only after the race occurs would any funds be disbursed.
"If an METF application is submitted, it will be thoroughly vetted and economic impact data scrutinized based on the actual circumstances for that event. Ultimately, I am responsible for protecting the interests of Texas taxpayers, first and foremost. I will not allow taxpayer dollars to be placed at risk. My position on that has not changed."
At the weekend Bernie Ecclestone said: "It is a bit of an uphill struggle but we will try and get there. There are two parties - one has a track and is building it, and the other has got the race contract. And they forgot to talk to each other."
Work at Austin suspended amid race contract dispute
Construction work at the Circuit of the Americas in Austin has ground to a halt, casting fresh doubt over the return of the US Grand Prix in 2012.
The event is scheduled to take place on November 18 next year at a purpose-built track outside Austin, but statements from key officials this week have revealed that a contract to hold the race is not yet in place. A statement from the circuit said construction work has been suspended "until a contract assuring the Formula One United States Grand Prix will be held at Circuit of The Americas in 2012 is complete."
"We have spent tremendous resources preparing for the Formula One and MotoGP Championship races, but the failure to deliver race contracts gives us great concern," Bobby Epstein, founding partner of Circuit of the Americas, said. "We believe the United States is vital for the future of Formula One and its teams and sponsors. Given the purpose-built Tilke design, creating a unique fan experience and iconic challenge for drivers, we hope that Texas will not be left behind. Over 100,000 fans have expressed an interest in purchasing tickets for Formula One alone."
The news followed a statement from Texas state comptroller Susan Combs raising concerns over the event and confirming that no state funds would be spent on the project until after the race. Combs' comments are significant as organisers were banking on $25 million from the Texas Major Events Trust Fund (METF) to help cover the cost of the sanctioning fee. In the statement Combs admitted fresh doubt had been cast over the Austin project after news that a second race will be held in the USA in 2013.
"The recent announcement of an annual Formula One race in New Jersey is a concern, as additional races have the potential to reduce the number of attendees to a Texas race, thereby decreasing the economic impact," Combs' statement read. "Additionally, the reports of a slowdown in construction at the Circuit of the Americas, and recently publicized disagreements between the race rights-holder and the circuit developers have prompted speculation about whether the Austin race will even occur. The ongoing controversies are a concern and we will continue to monitor them.
"Let me state clearly: We have not paid out any money for the Formula One event. The only dollars that can be spent on the United States Grand Prix are tax revenues attributable to the successful running of a race. The state of Texas will not be paying any funds in advance of the event. Further, as is the case with all METF events, each application will be reviewed and analyzed for its likely economic impact and only after the race occurs would any funds be disbursed.
"If an METF application is submitted, it will be thoroughly vetted and economic impact data scrutinized based on the actual circumstances for that event. Ultimately, I am responsible for protecting the interests of Texas taxpayers, first and foremost. I will not allow taxpayer dollars to be placed at risk. My position on that has not changed."
At the weekend Bernie Ecclestone said: "It is a bit of an uphill struggle but we will try and get there. There are two parties - one has a track and is building it, and the other has got the race contract. And they forgot to talk to each other."
#9
11-16-2011 | 03:46 PM
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#10
11-16-2011 | 03:57 PM
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Joined: Aug 2007
Posts: 3,391
Pathetic.
And what is the cost of the track and facilities? Are they really unable to come up with an LOC guaranteeing Ecclestone and his gang $25 million? Hard to believe that would be the case, if they were seriously able to finance this construction.
And what is the cost of the track and facilities? Are they really unable to come up with an LOC guaranteeing Ecclestone and his gang $25 million? Hard to believe that would be the case, if they were seriously able to finance this construction.