New Jersey set to host second US GP (?)

[oldredracer]

Originally Posted by WatertownNewbie

And any car abandoned on the circuit will be stripped before the driver gets back to his pit garage.

Hey. Dis ain't da Cross Bronx Expressway, y'know.

[Rossfeld]

Is this going to be a true steet racet or one of those temporary-permanent deals like Melbourne/Montreal where you just have to put up the fencing every year and you're done.

Because temporary events are really expensive, and you can't recover the costs the rest of the year with testing, track days, racing schools, other events, etc.

So in that sense NJ and Austin might even out.

But most importantly, how are they paying the sanction fee? Austin gets that good gubmint money that pays the 20-25mil Bernieworld fee, so all their ticket revenue goes back into the event.

If NJ isn't putting any money or subsidy into it, NJ has to pay for the event and the sanction fee out of ticket sales alone. I'm taking the assumption the land/track is 'free' in that it's owned by the promoters.

In other words, how is this going to be any more solvent than the Euro races that are basically taking losses on their F1 weekends because the ticket sales are lower than the sanction fee? But going back to that temp circuit issue, at least Hockenheim/Silverstone/etc can reduce their losses with other events throughout the year.

NJ is a really cool idea but there's still a few holes in the math for me. Whereas Austin is a really clever financial model. Austin is basically like an overseas race(ie Arabia/Asia) where they don't have to worry about paying the Bernie-fee.

[rslonaker]

UH-OH


Autoblog
September 25, 2012, 6:44 PM
by George Kennedy
Report: Ecclestone claims contract torn up for Grand Prix of America

Filed under: Motorsports, Earnings/Financials



Another day, another drama with Bernie Ecclestone at the center. This time, it appears that the the Formula One CEO and the series' top brass have "torn up" the contract for New Jersey's Grand Prix of America. In a new report from The Guardian, Ecclestone claims that the race's organizers have missed deadlines, leading to the scrapping of the race.

The main concern since the announcement of the New Jersey race in October of last year has been its financials - that is, the ability for event organizers to raise the necessary funds to put on the race. While construction has begun on the circuit, a motorsports industry insider told the Guardian in the report, "pricing for sponsorship etc. is unrealistic and not obtainable in the current market."

Such high pricing could be motivated by the massive fees associated with hosting an F1 race. The ten-year contract for Grand Prix of America would have been for £150 million ($193.9 million USD) and an annual estimated fee of £15 million ($19.3 million). The 2013 provisional calendar for F1 showed the New Jersey race as subject to confirmation, and a lack of commitment to the race may have also scared away sponsors.

The Guardian says dissolution of the contract is a "big blow to F1." Ecclestone is reportedly moving on, looking for new suitors including a GP in Mexico. Ecclestone tells the Guardian, "After Mexico, we want to go to South Africa."

The Grand Prix of America, which was to take place on a 3.2-mile street course on the New Jersey side of the Hudson river was set for June of 2013. It appears that now that the United States Grand Prix is locked in for in Austin, Texas, New Jersey may well be passed over altogether.
Ecclestone claims contract torn up for Grand Prix of America originally appeared on Autoblog on Tue, 25 Sep 2012 17:44:00 EST. Please see our terms for use of feeds.

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[oldredracer]

So...he puts out the provisional 2013 schedule last weekend and now he tears up the contract? I'm guessing this isn't over yet.

[dalyduo]

Well... The Austin race died a thousand deaths and was written off more times than Britney Spears and Lindsay Lohan combined. So it could be standard operating negotiating procedure for Bernie... Or he may have decided one US Grand Prix was enough. Maybe a ride down the New Jersey Turnpike changed his mind. Only time will tell.

[gt250]

Or maybe somewhere there is a NJ version of Donald Manes!