Australian F1 could be axed

[WhiteBlue]

If F1 is set to loose the Australian GP the only thing to blame will be Ecclestone's greedy pricing policy. The race is a masterpiece of organization, has massive attendance considering how small the country is and is famous for the friendly spontaneous party atmosphere.

The race was first run in 1928 and since then it was run 75 times. They only missed 1936 and the WWII years. Since 1984 the Australian GP counts towards the F1 world championship but the above statistics show that it has a much longer unbroken trace that makes it equal to every European Grand Prix in tradition. So rightfully it should be protected by the tradition formula of the FiA.

Consequently the Australian GP has an excellent name with motor racing fans all over the world. Plenty Europeans used to get up very early in the morning or rather in the night to watch it. Contrary to many traditional European races the Australian GP got massive support from the government years ago just to save the popular event in the face of exploding race fees.

Finally the Australian GP falls in a time slot where there will always be a need for races that can be run in the European winter. There are very few races in the southern hemisphere and few countries that are able to boast a motor racing heritage and the passion of the Australians indeed.

So one can say with some certainty that the GP has everything that makes it a classic worth saving. If the race gets killed for profit maximization the sport and the the show will be much poorer. The blame will be squarely laid on Mr. Ecclestone's and FOTA's doorsteps. One should not forget that the teams rake in 50% of the FOM profits and that they share the responsibility for making obviously bad calendar decisions.

[donskar]

He who has the gold makes the rules. And the King of Greed rules them all.

All hail Mammon, Offically Licensed God of F1.
Copyright 2011, All Rights Reserved, Patent applied for.

[FW17]

If F1 is set to loose the Australian GP the only thing to blame will be Ecclestone's greedy pricing policy. The race is a masterpiece of organization, has massive attendance considering how small the country is and is famous for the friendly spontaneous party atmosphere.

The race was first run in 1928 and since then it was run 75 times. They only missed 1936 and the WWII years. Since 1984 the Australian GP counts towards the F1 world championship but the above statistics show that it has a much longer unbroken trace that makes it equal to every European Grand Prix in tradition. So rightfully it should be protected by the tradition formula of the FiA.

Consequently the Australian GP has an excellent name with motor racing fans all over the world. Plenty Europeans used to get up very early in the morning or rather in the night to watch it. Contrary to many traditional European races the Australian GP got massive support from the government years ago just to save the popular event in the face of exploding race fees.

Finally the Australian GP falls in a time slot where there will always be a need for races that can be run in the European winter. There are very few races in the southern hemisphere and few countries that are able to boast a motor racing heritage and the passion of the Australians indeed.

So one can say with some certainty that the GP has everything that makes it a classic worth saving. If the race gets killed for profit maximization the sport and the the show will be much poorer. The blame will be squarely laid on Mr. Ecclestone's and FOTA's doorsteps. One should not forget that the teams rake in 50% of the FOM profits and that they share the responsibility for making obviously bad calendar decisions.

As per your theory every race should be subsidized like Monza and Monte Carlo

[Mysticf1]

The most likely outcome at the moment is the contract will not be renewed after 2015, politics can change alot in that time tho...i've got all my fingers and toes crossed.

Melbourne really is a great race to attend, i haven't missed one yet!

[WhiteBlue]

As per your theory every race should be subsidized like Monza and Monte Carlo

No, that is what you say. Stop twisting other user's stated opinion! Not every Grand Prix has been run 75 times.

[creedbratton]

The Premier of Victoria still wants the race to run. I think the way they see it is that they get most of the money back from local businees, from interstate and international spectators. Not through ticket pricing.

I think the problem is the way that the race is marketed, seems pretty ineffective. This is coming from a Melbourne native.

Government could try something like the Singaporeans, and add an extra tax to the weekend.

What is the marketing like for those outside Victoria, is there any?

[Tamburello]

What is the marketing like for those outside Victoria, is there any?

If you ain't an F1 fan you'd be lucky to hear about it before evening news mentions the cops pulling Hamilton over on FP1 day...

It is not like the early days of Melbourne or even Adelaide when there was a proper nationwide buildup to the event. I'm a Sydneysider, btw.

[FW17]

As per your theory every race should be subsidized like Monza and Monte Carlo

No, that is what you say. Stop twisting other user's stated opinion! Not every Grand Prix has been run 75 times.

My point is either negotiate a better deal or pay up. It is not like Australia is poor and local govt is not making any money out of it.

F1 puts a great show and venues which want it should pay for it without exception. BE is right in charging for the exposure F1 guarantees to the venue. Monza and Monte Carlo F1 needs as one is home to ferrari and other for the venue itself. Only other race that should have been given consideration should have been silverstone being the closest home to many teams.

OZ may have run 75 times but still will not carry the same value.

[Tamburello]

The local Govt. doesn't make money from the event, that's the whole damn point. In fact, the Victorian taxpayer has to fork out $50m per year to hold the GP.

[Just_a_fan]

Silverstone had a similar problem. Bernie kept saying that the Govt should pay to keep the race. He nicely forgot the multi-millions that were spent to improve the roads around the circuit to get people in and out. All done with public money.

And the ticket prices for the British GP are, frankly, ridiculous. The only person making any decent money out of it all is Bernie.

The guy's a worm.

[WhiteBlue]

The local Govt. doesn't make money from the event, that's the whole damn point. In fact, the Victorian taxpayer has to fork out $50m per year to hold the GP.

Everybody who has done only superficial research on the issue knows that Bernie is the problem. He raises the fees by 8-10% annually and has been doing it for a long time. This is way beyond the rate of inflation and there are very few promoters who have managed to grow their event accordingly to cover the cost.

Even if you add all the taxation on the F1 economic impact and fork that over to FOM you are not able to run the event and break even. It means that increasingly tax payers have to pay more than the benefit of the race or promoters have to subsidize the race with other activities. If this pricing continues you will only have GPs in countries with state controlled economies or dictators who use F1 to polish their image. This is not appropriate.

IMO the FiA needs to impose some restrictions on fees the next time the F1 business changes hands.

[Just_a_fan]

Having dissed Bernie, I suppose I should also point out that he is working for someone else too. CVC own the rights (since 2006) and Bernie works for their balance sheet as much as his own.

CVC are a private equity firm and their remit is to make a return on other people's money. I'd bet that at the moment F1 represents one of their stronger income sources...

[andrew]

MrE has every right to charge whatever the hell he likes for venues to host what is effectively his product. If the organisers don't like it then they shouldn't have agreed a contract with MrE should they?

He wouldn't be doing his job if he wasn't getting a decent return year on year for CVC's investors. Personnally, I think MrE does an excellent job and I have a lot of respect for the chap.

Saying MrE is the problem is just ridiculous. It's the race organisers problem for failing to read their contractual agreements properly.

Anyhoo, to the Aussie GP. If they loose it then so what? There are plenty other tracks which are better that are screaming out for a GP. The location of a track is irrelevant and it is the quality of the track that is the important factor.

[WhiteBlue]

MrE has every right to charge whatever the hell he likes for venues to host what is effectively his product.

And there you are in error. The championship belongs to the FiA which passed the right for the commercial exploitation to FOM. As a part of that deal limitations are agreed that protect traditional Grands Prix. I believe that Australia meets that criterion.

The FiA is the global lobbyist for motorists and motor sport participants. They should take notice when their constituency is being abused by non appropriate business practice.

[Giblet]

The location of a track is irrelevant and it is the quality of the track that is the important factor.

This is simply not true at all. By putting a track in the middle of the desert in a country where nobody gives a hair about car racing, you are having the sport racing somwhere where nobody shows up to see the race. This is an unsustainable practice.

The quality of the track is very important, but race venues are businesses, and the first rule of business is location, location, location.

Also, see Turkey, and China if you don't believe me. Nobody goes to the races, so why would the country want to keep footing a bill for a world renowned event nobody goes to? It is not exactly a source of pride.

Istambul is down the street from the circuit, and there about 16,000,000 people in that city alone, yet they can not fill the stands, and use them as ad space so the stands don't look empty. The track is liked by drivers mind you, but that doens't sell tickets.

Turkey was sold the idea of F1 by Bernie, and are now experiencing buyers remorse.

On the other side of the coin, you have Canada, which sells out far in advance of the race, and the city and track are loved by fans and teams alike. The polulation is less than 1/4 of Istambul.