Attempts to save Montreal race fall short November 17, 2008

[rafterman]

Grand Prix boss wanted $175MM guaranteed over five years.

Tough to compete with Abu Dhabi, Hong Kong etc. other F1 venues.

Attempts to save Montreal race fall short November 17, 2008

By JESSICA MURPHY
The Canadian Press

MONTREAL -- The financial demands by Formula One boss Bernie Ecclestone proved too steep for the three levels of government fighting to keep the Grand Prix in Montreal.

"We've placed our last financial card on the table," Quebec Economic Development Minister Raymond Bachand said at a news conference yesterday, confirming the cancellation of the 2009 Canadian Grand Prix.

"Unless [Ecclestone] changes his mind, it's over."

Despite the collective effort, negotiations stalled when the F1 boss wouldn't budge from his "excessive" demands.

"Mr. Ecclestone demanded annual fees that started at $31-million and went to $38-million by 2013, so $175-million in total," Bachand said. "And he wanted a bank or government guarantee. He didn't care who organized the race."

Formula One Administration Ltd. also wanted 100 per cent of the revenue linked to corporate boxes and advertising on the circuit.

Canada's counteroffer fell short: the federal, provincial and municipal government proposed $110-million over five years and a cut of the annual profit - 75 per cent of the first $10-million and 25 per cent of the rest.

"At that level, we were sure the Grand Prix would be profitable," Bachand said.

Quebec Premier Jean Charest said yesterday during an election campaign stop that while no effort was spared to save the race, it was simply too expensive.

"If we decide to invest public money in an event like the Grand Prix, it's because it makes sense on an economic level," he said. "It has to be profitable."

The Canadian Grand Prix was dropped from the 2009 schedule in October and members of three levels of government were left scrambling to get it back on the roster, even flying to London to meet F1 organizers.

The Montreal race was on the F1 schedule since 1967.

The Turkish Grand Prix was moved into Montreal's dates of June 5 to 7.

 

[capncrunch]

You know, there's nothing in the world like seeing - and hearing - F1 cars rip around a circuit. Once you've experienced it, you'll never be impressed with the minor leagues (CART/IRL/whatever they're called this week, Nascar, etc.) again.

But at $175M over five years and 100% of the corporate box and ad revenue, well, there's just no way.

A sad day in Canadian motorsport.

 

[train]

Formula 1 has been pretty dull over the last few years with seemingly only two manufacturers capable of winning any given race.

Ecclestones' a greedy little Nazi loving prick isn't he

 

[rafterman]

Ecclestones' a greedy little Nazi loving prick isn't he

That video would have been great for "moral suasion" if the tabloids hadn't bought it in the U.K..

 

[capncrunch]

Formula 1 has been pretty dull over the last few years with seemingly only two manufacturers capable of winning any given race.

You're kidding, right?

This past year the title was decided on the last race, in the last corner.

Ecclestones' a greedy little Nazi loving prick isn't he

I think you're referring to Max Mosley. He was the one that was caught with his britches down, engaging in some S&M play... Unless you know something about Bernie that I don't.

He is, though, a greedy bastard.

It's really too bad. I know the drivers always looked forward to partying in Montreal. Occasionally one would see them out and about after hours during race weekend.

Aside: Does Jacques Villeneuve still own that restaurant in Montreal? For the life of me I can't think of the name of it.

 

[Dartman]

China is giving up there race, because of no interest there

 

[Big Michael]

Aside: Does Jacques Villeneuve still own that restaurant in Montreal? For the life of me I can't think of the name of it.

http://www.newtown.ca/

 

[JazzyTune]

I used to like F1 races... I would even get up early in the morning (even before I had kids) to watch the races held in Europe. Even today, being a Montrealer, I still had an interest in the Canadian GP. But Ecclestone is way too greedy! Even France doesn't want the GP at that price anymore... Other European countries may follow. Soon, more than half of the races will be held in Asia and the middle east. I'm not sure that this pleases the manufacturers, they need the North American and Europeean market

 

[Captain Fantastic]

In today's economic climate, I'd say Ecclestone has overplayed his hand. I agree that F1 needs the N.A. (and European) markets and dollars in the long run - another race in Asia is not going to be a viable long-term solution - the sponsors and advertisers will start griping soon.

 

[nato75]

Wow, Dartman, I had missed that story. BBC is reporting that China is considering dropping their F1 race.

Link: http://news.bbc.co.uk/sport2/hi/motorsport/formula_one/7728866.stm

Shanghai, China's biggest city, spent $240m (£161m) building a track suitable for F1 and has hosted a Grand Prix since 2004.

It has a contract with F1 until 2010 and is said by F1 insiders to pay about $50m (£34m) annually for the race.

But the event has not proved popular with local people and attendances have been poor - even with some spectators being transported in specifically to give the appearance of a fuller venue.

The event has been lucrative for F1 commercial boss Bernie Ecclestone, who is believed to charge China some of the highest fees to host a race.