Australian GP 2010 - Melbourne

For ease of use, there is one thread per grand prix where you can discuss everything during that specific GP weekend. You can find these threads here.

Post Thu Sep 16, 2010 11:09 am

Australian GP posts big loss in 2010

The beginning of the end for the Australian GP, maybe? It strikes me as poor management, really, that they can't reduce the losses even with record gate receipts.
"Words are for meaning: when you've got the meaning, you can forget the words." - Chuang Tzu
horse
 
Joined: 23 Oct 2009
Location: Edinburgh, UK

Post Thu Sep 16, 2010 11:42 am

horse wrote:Australian GP posts big loss in 2010

The beginning of the end for the Australian GP, maybe? It strikes me as poor management, really, that they can't reduce the losses even with record gate receipts.


It's easy to understand why this happens. In Bernie's wold, his fees increase exponentially. Thus, the organisers of the Aussie GP either increase the ticket prices exponentially (which would lead to less people and then less revenue and, subsequently, eventual losses) or they increase attendance exponentially (which would end up, after a few years, with millions of australians dying of starvation due to overpopulation) or get into a mix and match that just manages to scrap by. Well, there is another alternative: get rid of Bernie's abusive fees.

Remember, kids, the only businesses that can grow exponentially are banks. Of course, they do it by actually having only a few % points of the amount of money they say they have, and after a long enough period they will crash again.

PS: Someone was recently asked who made the most money out of F1. The anser was... Bernie's ex.
I am not amazed by F1 cars in Monaco. I want to see them driving in the A8 highway: Variable radius corners, negative banking, and extreme narrowings that Tilke has never dreamed off. Oh, yes, and "beautiful" weather tops it all.

"Prediction is very difficult, especially about the future." Niels Bohr
Miguel
 
Joined: 17 Apr 2008
Location: San Sebastian (Spain)

Post Thu Sep 16, 2010 11:59 am

I forgot about Bernie's high inflation rate. It's always struck me that this is his favourite method for shipping the established GPs. He needs to make space for the Russian and US GP now. 22 races in a season? Could it really work, without losing a couple more of the current GPs?
"Words are for meaning: when you've got the meaning, you can forget the words." - Chuang Tzu
horse
 
Joined: 23 Oct 2009
Location: Edinburgh, UK

Post Mon Sep 20, 2010 2:48 am

We are talking US$ 43m here. This is not pocket change. Even the brand new Austin GP will not get more than US$ 25 m subsidy which they reckon is the economic benefit to the tax payer that will be waived to establish the event.

Albert Park has no chance at all to break even because the facility is not permanent and has huge recurring costs to prepare for the race just like Monaco. But different to Monaco it will not get the race for a nominal race fee. Unless the Aussie GP moves to a permanent facility that can generate other revenues over the course of the year the future of the GP is doomed.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)
WhiteBlue
 
Joined: 14 Apr 2008
Location: WhiteBlue Country

Post Mon Sep 20, 2010 8:44 am

Well the govt. has defended that the GP will go on until 2015...Phillip Island would be the alternate location, but it certainly cannot handle the huge F1 crowds and not enough hotels there. Alternately, the Oz Gp could be moved to Homebush bay in Sydney, or they can run a street circuit in the backdrop the Sydney's Olympic park which are the serious other places. Albert park is a great location, 10 min by drive from city centre,great location. But the costs have risen sharply in recent years and brings a loss to the State of Victoria :(
n_anirudh
 
Joined: 25 Jul 2008

Previous

Return to Formula One races

Who is online

Users browsing this forum: astracrazy, atanatizante, RSS Junkie [Deamon], Yandex [Bot] and 13 guests