no F1 in austin, maybe no Moto GP in Austin

[RACER X]

ACK!

http://moto-racing.speedtv.com/artic...e-in-jeopardy/

MOTOGP: Austin Future Cloudy
The expected cancellation of the Formula 1 event at the Circuit of the Americas will likely have a domino effect on the track's ability to host MotoGP as well.

Over the past day cascading layers of information have painted an increasingly bleak picture of the future of the 2012 Formula 1 USGP scheduled to take place at the Circuit of the Americas in Austin, Texas.

The latest news coming out of the situation has F1 supreme Bernie Ecclestone admitting that the race is on the verge of being officially cancelled as construction has halted at the facility, Tavo Hellmund's Full Throttle Productions no longer holds a contract to run the race (and at the moment, no one does), and the vital $25 million cash injection from the Texas Major Events Trust Fund is no longer guaranteed.

While the spotlight is on the F1 race, the 10-year contract for the MotoGP World Championship slated to kick off in 2013 must also be considered in dire jeopardy as Circuit of the Americas officials have confirmed that the track's construction will not resume without a Formula 1 race contract in place.

The loss of the race would be a bitter disappointment to the two-wheeled series that is looking to expand its American presence. The location was considered ideal as Texas has strong ties to the sport with one of its most popular ever champions, Kevin Schwantz (also a key figure in organizing the race), hailing from the state, not to mention current MotoGP stars Ben Spies and Colin Edwards.

That said, MotoGP is relatively well insulated should the race fall through. Following the April announcement of the addition of Austin to the schedule, it was widely speculated that the Red Bull Indianapolis GP, one of two existing American rounds along with the Red Bull USGP at Laguna Seca (which already had a deal in place to continuing hosting through 2014), would be cut to make room for Austin.

However, the Indy race was also re-upped through 2014 this past September, guaranteeing that the United States will continue to be well represented on the MotoGP calendar no matter what happens with the Circuit of the Americas.

[goof2]

Can't say I'm terribly surprised.

[azoomm]

The background is entirely too long to post while on my phone. Short version is, they tried to cut out Tavo... Good for him that he is holding out and Bernie has his back. It's a lot of money to flush if it doesn't go through.

[shmike]

Originally Posted by azoomm

The background is entirely too long to post while on my phone. Short version is, they tried to cut out Tavo... Good for him that he is holding out and Bernie has his back. It's a lot of money to flush if it doesn't go through.

Who is "they"?

[RACER X]

http://www.autoweek.com/article/20111116/FREE/111119900


Game over for the U.S. Grand Prix and the Circuit of the Americas

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Recommend (24)

The unfinished dream: This is turn seven of the planned Circuit of the Americas track near Austin, Texas.

By: Steven Cole Smith on 11/16/2011
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Formula One: Paper reports that work slows at Austin site; are changes looming for promoter Tavo Hellmund?

Tuesday, Nov. 15, 2011, will go down as the day when the racing died in Austin, Texas. The 2012 Formula One United States Grand Prix and the track that would host it, the Circuit of the Americas, were dealt a one-two punch that seems unsurvivable--though neither the race nor the track has formally been pronounced dead.

Of course, neither has Texas Gov. Rick Perry's presidential campaign, but we all know how that's going.

The two punches that apparently finished off the race and the track, which have been ailing for six months, began when Texas comptroller Susan Combs, by far the biggest fan motorsports had in the state government, backed away on Tuesday from a gutsy incentive she helped engineer.

Using a special state trust fund which, more than 200 times, has provided money to encourage big annual public events to come to Texas, Combs was going to advance race organizers $25 million a year, to be repaid by the projected additional tax money generated from the event, mostly from tourists.

This $25 million, to be paid up to one year in advance of the U.S. GP, would have roughly covered the annual sanctioning fee to F1 honcho Bernie Ecclestone. This is a lot of money--probably double or triple a NASCAR Sprint Cup Series sanctioning fee--but it is also a comparative bargain, given what some race organizers in other countries must pay Ecclestone. This contract was assigned to Full Throttle Productions, headed by Tavo Hellmund, whose personal family relationship dating back 40 years with Ecclestone was an enormous factor in getting the deal. It was not assigned to the other two founding partners of the Circuit of the Americas, colorful businessman Red McCombs and Bobby Epstein, the low-key founder of a money-management firm.

So here comes Punch One: Comptroller Combs, clearly weary of the infighting inside the track organization, announced on Tuesday that she would not advance the $25 million to the organizers, which--had all gone well--could have been paid as early as Saturday. The debut F1 race was scheduled for Nov. 18, 2012, and the guidelines, particular to this one race event, said the money could be advanced as early as 364 days before the event takes place.

That option is gone. Now, the state would offer up the money after the race, assuming certain criteria were met. To get the race now, promoters would have to advance that $25 million out of pocket, assuming such a semisweetheart deal is even on the table. By all indications, it is not.

Which leads up to Punch Two: Financier and main money man Epstein--billionaire investor McCombs is reportedly in for less than 10 percent of the budgeted $300 million or so--would like to have Hellmund's 10-year F1 contract assigned to the Circuit of the Americas and not to Hellmund's Full Throttle Productions. Ecclestone has apparently offered Epstein a new contract, but not at the friends-and-family rate Hellmund received. For whatever reason, according to multiple sources, Epstein doesn't like the contract Ecclestone provided.

So later Tuesday afternoon, Circuit of the Americas, which apparently no longer includes cofounder Hellmund, issued a statement saying, "Organizers of Circuit of the Americas, a premier motorsports racing and entertainment venue being developed in Austin, Texas, are suspending further construction of the project until a contract assuring the Formula One United States Grand Prix will be held at Circuit of the Americas in 2012 is complete. The race contract between Formula One and Circuit of the Americas has not been conveyed to Circuit of the Americas per a previously agreed-upon timetable."

What "previously agreed timetable" is that? No one is talking. Presumably Hellmund expected to get paid for landing a 10-year F1 contract, a 10-year MotoGP contract, bringing Australian V8 Supercars to the United States, locating a site for the track, arranging for Hermann Tilke--the top F1 track designer in the world--to create it, and getting the State of Texas to advance the money for the sanctioning fee. Presumably he has not been paid what he expects. But again, no one is talking aside from prepared statements.

This is Hellmund's: "After years of effort in getting F1 to Austin, Full Throttle Productions and city, county and state officials have done all we could. It is the responsibility of Circuit of the Americas to bring it across the finish line."

In the past few months, there has been evidence that Epstein, who is used to running his own show, wants to run this one, too, which is sort of like George Steinbrenner insisting that he should coach his New York Yankees, except that Steinbrenner actually had some experience in baseball. Epstein may be guilty of thinking he can bluff or shame Ecclestone into awarding Austin a new sweetheart deal, but the F1 king has countries, tracks and promoters standing by, begging for a race. He does not need Austin, especially since he has the New Jersey race on tap beginning in 2013.

Thus, barring something that would qualify as a motorsports miracle, there will be no F1 race in Austin, which--according to Epstein's statement--means there will be no Circuit of the Americas, either.

So what will happen to this big, $40 million (that's dollars spent until now and a long way from what is needed for completion) mudhole near Austin? Perhaps the world's nicest RallyCross track? Presumably it could be completed as a less-ambitious, less expensive paved track, attracting lesser racing series, but only NASCAR Sprint Cup would essentially guarantee a profitable product, and Sprint Cup isn't coming to Austin.

Look at reality, and it has to be considered cautionary that IndyCar's recent, very successful Baltimore Grand Prix, which attracted a huge crowd for the street race, was unprofitable to the point where a second Baltimore race is not assured.

The only thing that seems certain in Austin is that it's just about time for lawyers to get involved. It's hard to imagine the plethora of lawsuits that could result from the Circuit of the Americas-Full Throttle conflict: the contractors, the designers, the suppliers? Oh, well.

Six months ago it seemed as if there was a gorgeous site just waiting to be one of the world's most interesting racetracks--a 10-year contract with the world's top auto and motorcycle series, adequate financing, happy politicians willing to help out, area businesses excited about the international crowd the races would draw, and subsequently all the building permits in place.

Now, nothing.

Tuesday, Nov. 15, 2011: Not a good day for race fans.

[Porkchop]

Shitty. Was really excited for this track. Seems like a bunch of arguing school children, and a fuck ton of wasted money. The thing is Ecclestone can do whatever the hell he wants, and texas must bend over and take it. This Susan Combs is fucking everything up....

[azoomm]

Originally Posted by Porkchop

Shitty. Was really excited for this track. Seems like a bunch of arguing school children, and a fuck ton of wasted money. The thing is Ecclestone can do whatever the hell he wants, and texas must bend over and take it. This Susan Combs is fucking everything up....

No, McCombs is fucking things up. "They" are Circuit of the Americas. Taco Hellmund owns Full Throttle Productions. He is good friends with Ecclestone and holds the F1 contract. COTA tried to screw Tavo out of the deal HE put together. Susan Combs simply has Tavo's back as he is the one that put the deal together with the state.

McCombs and his partners need to decide if they want to fish or cut bait. It has been theirs to lose, and their just pissed that Tavo outsmarted them...

[fasternyou929]

Originally Posted by RACER X

... Presumably Hellmund expected to get paid for landing a 10-year F1 contract, a 10-year MotoGP contract, bringing Australian V8 Supercars to the United States, locating a site for the track, arranging for Hermann Tilke--the top F1 track designer in the world--to create it, and getting the State of Texas to advance the money for the sanctioning fee.

Originally Posted by RACER X

Financier and main money man Epstein--billionaire investor McCombs is reportedly in for less than 10 percent of the budgeted $300 million or so--would like to have Hellmund's 10-year F1 contract assigned to the Circuit of the Americas and not to Hellmund's Full Throttle Productions.

The investors in Ciruit of the Americas are squeezing Hellmund, the key organizer, out of the picture and these are your deep thoughts on the situation:

Originally Posted by Porkchop

This Susan Combs is fucking everything up....

Very insightful.

[Porkchop]

Originally Posted by fasternyou929

Very insightful.

Straight and to the point....

[Porkchop]

Any updates?