Australian Grand Prix Threatened by Bernie

Are we going to lose the Australian Grand Prix? Good question, but probably. Berinie Ecclestone sounding a little ‘put off’ has threatened this race with some tough words.

Maybe we don’t want to be in Australia. Our costs are very high in Australia and we get a lot less money. It’s bloody bad for us. We’ve got quite a few places on the list that would like to have Formula One and, as it seems your guy down there John Brumby, Premier of Victoria doesn’t want Formula One, we can make him happy and make the other people happy.

He does tend to strong arm people, but here’s a little of why. This grand prix despite having deep pocketed sponsors like Fosters, and not ING, Victorian Govermnent Premier John Brumby says the race has never turned a profit and indeed lost 35 m dollars last year.
1998 saw the lowest crowd number until last year with only 301,000. Now having the race in the park, jumping on the protest wagon are environmental groups against the park venue and they are gathering steam and puting pressure on the government.

It isn’t any wonder that late last year Mr. Brumby said this race may just become too expensive if licencing fees continue to rise.

There is also no doubt that this is an expensive grand prix for any sponsor and team and the time zone isn’t a friendly one.

Now look at Ecclestone’s demand. “In Melbourne, if we were to continue to be there, we would have to have a night race. That would be the only option.”

More audience available with a new time slot means more sponsorship and more money, but nevertheless, financing a night race doesn’t come cheap. So, does this sound like someone who is even considering Australia beyond 2010? Things are not looking too good.

The latest, and the response to Bernie Ecclestone’s comments from Australia is this.

Australian Grand Prix chairman Ron Walker Mr Walker today said the race was viable, despite losing almost $35 million last year, and it had widespread support to stay in Melbourne beyond 2010. he also rejects completely Bernie Ecclestone’s claim that F1 teams and sponsors want to scrap this grand prix and that John Brumby has thrown in the towel and given up support. He says the race is viable even when his prediction is a 40 m dollar loss this year because this can be balanced against economic benefits.

“I don’t agree with that at all, I speak to the teams regularly and they love coming to Melbourne, everybody loves coming to Melbourne.

“The Premier’s been a great supporter of it, even in opposition … but it has to add up in the eyes of the taxpayer.”

The Australian motor racing chiefs did consider the possibility of a night race, but in the end ruled it out instead opting to move from 2pm to 3.30pm (AEDT), which is suppose to attract tens of millions more television viewers.

Prime Minister john Walker says:

“I think that that compromise has been well accepted by Mr Ecclestone, but at the same time I think this is just his first shot over the bow in his negotiations with the government on the renewal of the contract.”

“We’ve made it clear we will not have a night race, Mr Ecclestone has made it clear he accepts that decision and, in fact, supports it.”

Bernie Ecclestone always has his fingers in other pie’s. He’s always lurking around for other new and profitable sites to hold his events and has some real possibilities. If Australia keeps rejecting him and his demands, another new grand prix will pop up in a place like, maybe India, and out goes the Australian Grand Prix.

Does this race even add up now? Attendance figures can be used to dispute this. In this erra, is Australia a viable location for a F1 race? What specifically are the economic benefits to a money losing event like this? or is it the prestige of hosting an F1 grand prix?

what do you think?

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