Will F1 racing survive at COTA in Austin? (Reno, Garrett: cost, moving)

[pop251808]

Originally Posted by Roadking2003

Governments should NEVER subsidize businesses. Governments should NEVER choose winners and losers. That is not a valid government function.

Where is that written (besides right here)?

[cBach]

How about he gets a full fives years payment every five years after 5 races are held. If he cancels before then, then he gets zero. Then after five years it's extended to 10 years. So this way he's not out of any money, but he has to have a commitment first.

The money goes into investments and so we are making interest off that money over the five years. Then we pay out and the money remaining from the interest goes towards investing for the next payment.

There has to be a clause that the state can get out of the contract at any time if economic conditions warrant (i.e. low price of oil).

Like I said, it's all in the negotiation terms. There's always a win-win for everyone.

During the negotiations he has to sign that he will not leave Austin until the negotiations are finished, or he gets zero this year.

[vlan1]

Originally Posted by cBach

How about he gets a full fives years payment every five years after 5 races are held. If he cancels before then, then he gets zero. Then after five years it's extended to 10 years. So this way he's not out of any money, but he has to have a commitment first.

The money goes into investments and so we are making interest off that money over the five years. Then we pay out and the money remaining from the interest goes towards investing for the next payment.

There has to be a clause that the state can get out of the contract at any time if economic conditions warrant (i.e. low price of oil).

Like I said, it's all in the negotiation terms. There's always a win-win for everyone.

During the negotiations he has to sign that he will not leave Austin until the negotiations are finished, or he gets zero this year.

This isnt how it works. How it works is Bernie names his price and you pay it. He left Monza one of the most storied of all racetracks because of money. There are no shortage oil rich countries throwing money at F1 to hold races there (Bahrain, Qatar, etc). Bernie has made so much money from F1 he was able to basically pay off the German govt to avoid getting put in jail for bribery. There is no leverage on Bernie unless you can find a way to blackmail him. Its his way or the highway.

[Roadking2003]

Originally Posted by pop251808

Where is that written (besides right here)?

Read a little about Libertarian political positions.

And there is nothing in the constitution that supports the concept of government bailing out businesses.

[rynetwo]

Originally Posted by cBach

These are the facts.

The track is already built and race dates already planned.

F1 (except for this year when it was scheduled during the worst hurricane the western hemisphere has ever experienced - Hurricane Patricia), has been a good success.

F1 wants to prove that it can establish a base in the US. They realize that the big $ sponsors and continued success of F1 will be tied to whether they can get Americans enthusiastic about the sport.

If Bernie walks away from Austin, no other American city is going to entertain his ideas. Firstly, no other city is going to build a specifically designed F1 track in the US. Look for another 20 year absence of F1 and lack of F1 enthusiasm in the US. Bernie is a businessman and he recognizes that this would be a dumb move.

He will simply have to eat the cost so that a good US base can be established and extra sponsorship obtained. There are lots of dollars left sitting on the table.

For Austin, the loss of F1 would not really mean much in the grand scheme of things. We are the fastest growing large city in the country. Our economy will do just fine.

I say call Bernie's bluff. He's no longer in a position of bargaining like he was before we had a track.

Not to nit pick but this statement is only true looking at percentage increases because if you look at actually increases Austin is not even in the top 10. (barely out)


Atlanta +88,891
Dallas +131,217
Houston +156,371
Los Angeles +86,371
Miami +66,361
New York 90,797
Phoenix +84,980
San Francisco +64,406
Seattle +57,857
DC +66,561

Austin +57,486

[ATX Wahine]

Originally Posted by vlan1

This isnt how it works. How it works is Bernie names his price and you pay it. He left Monza one of the most storied of all racetracks because of money. There are no shortage oil rich countries throwing money at F1 to hold races there (Bahrain, Qatar, etc). Bernie has made so much money from F1 he was able to basically pay off the German govt to avoid getting put in jail for bribery. There is no leverage on Bernie unless you can find a way to blackmail him. Its his way or the highway.

Ayep. This.

[cBach]

Originally Posted by vlan1

This isnt how it works. How it works is Bernie names his price and you pay it. He left Monza one of the most storied of all racetracks because of money. There are no shortage oil rich countries throwing money at F1 to hold races there (Bahrain, Qatar, etc). Bernie has made so much money from F1 he was able to basically pay off the German govt to avoid getting put in jail for bribery. There is no leverage on Bernie unless you can find a way to blackmail him. Its his way or the highway.

You must not be in business. There's a way to make others think they're getting a deal when it's all just a tap dance.

[centralaustinite]

Originally Posted by cBach

You must not be in business. There's a way to make others think they're getting a deal when it's all just a tap dance.

F1 and Bernie bear no resemblance whatsoever to any typical business! The whole thing is pretty much the exact opposite of how conventional businesses are run.

[vlan1]

Originally Posted by cBach

You must not be in business. There's a way to make others think they're getting a deal when it's all just a tap dance.

Nope not in business. But know enough about F1 to understand how it and Bernie work, which you are not getting. Bernie Ecclestone cares about nothing but money. F1 is a highly coveted product. Supply and demand. When oil rich countries and corrupt governments like Russia are willing to shower him in cash for him to allow them the privilege of holding a race, you cant get him to agree to some weird cockamamie deal. Money talks, **** walks.

[ScoPro]

Originally Posted by vlan1

Nope not in business. But know enough about F1 to understand how it and Bernie work, which you are not getting. Bernie Ecclestone cares about nothing but money. F1 is a highly coveted product. Supply and demand. When oil rich countries and corrupt governments like Russia are willing to shower him in cash for him to allow them the privilege of holding a race, you cant get him to agree to some weird cockamamie deal. Money talks, **** walks.

Well, Austin certainly is pushing the "walkability" culture.