More Drama In F1 New Jersey Discussions
Posted 29 September 2012 - 05:50 PM
Agreements for F1 New Jersey apparently shredded
For months, the rumor mill has been rolling over a suggested Formula One race in New Jersey for the 2013 F1 season. Formula One is not the most popular motor sport in the United States, as NASCAR and IndyLights, the race series formerly known as IndyCar, enjoy more of a following.
In the States, there is still a fairly big following for the racing series. It is considered the most prestigious racing series in the world though, so New Jersey would definitely benefit from a worldwide event like that.
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An agreement has unsuccessful to materialize so far, for whatever reason. The race isn't really certain to occur and, according to AutoBlog, is likely not occurring, as Formula One boss Bernie Ecclestone has disclosed that the agreements for the race were torn up.
A normal return of the U.S. Gran Prix to the sport was anticipated with the F1 New Jersey contract since it was requiring 10 Grand Prix in New Jersey. There will be one in Texas later this year in Nov at the Circuit of the Americas, which is under construction at the moment.
From 1961 to 1980, the Watkins Glen in New York was the fixed location of the U.S. Gran Prix. Since then, there has not been a set location. Since 2007, there has not been one at all, according to the Economist.
If you think it is expensive to get motor finance for a vehicle, you should consider how much it costs to put together a race event. The state is being really stingy and playing hardball, which is most likely fair since tax dollars should be used to cover roads and schools before paying for a race.
Sports paid for by towns
Cities are always taking on new stadiums for the National Football League and adding stuff to host the Olympics, but really, these kinds of things are huge money losses for towns. The town of Montreal was in debt for 30 years after hosting the 1976 Olympics. They are enormous losses regardless of the belief that they are expected to bring in more tourism, more jobs and extra taxes.
Still, towns cannot get away from financing when they are asked to be a host city. Formula One even asks for a fee for staging the race. Formula 1 will charge anywhere from nothing to $47 million, according to Austin Statesman, to host the race. Of the 19 F1 Grand Prix that were hosted last year, according to ESPN, 15 of them were financed publicly in one way or another. Formula One does suggest that the city will make money by hosting it, but that is not always true.
Towns have to spend upward of $30 million to hold the race, blocking off roads, putting up grandstands and pit buildings for street courses, hiring security and sanitation and so on, according to ESPN. Building permanent facilities can cost $250 million. However, many towns do manage to net profits on races, making F1 one of the few sports that are not a bad wager.
Also, according to the Economist, most U.S. Grand Prix, after Watkins Glen stopped running the races, lost cash. That is why New Jersey governor Chris Christie insisted an F1 New Jersey race would have to be privately funded and also why the state of Texas isn't staging any more races until after it's added up the receipts from this year's race.