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RACER X · 11-17-2011, 10:28 AM

http://www.autoweek.com/article/20111116/FREE/111119900

Game over for the U.S. Grand Prix and the Circuit of the Americas

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Recommend (24)

The unfinished dream: This is turn seven of the planned Circuit of the Americas track near Austin, Texas.

By: Steven Cole Smith on 11/16/2011
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Formula One: Paper reports that work slows at Austin site; are changes looming for promoter Tavo Hellmund?

Tuesday, Nov. 15, 2011, will go down as the day when the racing died in Austin, Texas. The 2012 Formula One United States Grand Prix and the track that would host it, the Circuit of the Americas, were dealt a one-two punch that seems unsurvivable--though neither the race nor the track has formally been pronounced dead.

Of course, neither has Texas Gov. Rick Perry's presidential campaign, but we all know how that's going.

The two punches that apparently finished off the race and the track, which have been ailing for six months, began when Texas comptroller Susan Combs, by far the biggest fan motorsports had in the state government, backed away on Tuesday from a gutsy incentive she helped engineer.

Using a special state trust fund which, more than 200 times, has provided money to encourage big annual public events to come to Texas, Combs was going to advance race organizers $25 million a year, to be repaid by the projected additional tax money generated from the event, mostly from tourists.

This $25 million, to be paid up to one year in advance of the U.S. GP, would have roughly covered the annual sanctioning fee to F1 honcho Bernie Ecclestone. This is a lot of money--probably double or triple a NASCAR Sprint Cup Series sanctioning fee--but it is also a comparative bargain, given what some race organizers in other countries must pay Ecclestone. This contract was assigned to Full Throttle Productions, headed by Tavo Hellmund, whose personal family relationship dating back 40 years with Ecclestone was an enormous factor in getting the deal. It was not assigned to the other two founding partners of the Circuit of the Americas, colorful businessman Red McCombs and Bobby Epstein, the low-key founder of a money-management firm.

So here comes Punch One: Comptroller Combs, clearly weary of the infighting inside the track organization, announced on Tuesday that she would not advance the $25 million to the organizers, which--had all gone well--could have been paid as early as Saturday. The debut F1 race was scheduled for Nov. 18, 2012, and the guidelines, particular to this one race event, said the money could be advanced as early as 364 days before the event takes place.

That option is gone. Now, the state would offer up the money after the race, assuming certain criteria were met. To get the race now, promoters would have to advance that $25 million out of pocket, assuming such a semisweetheart deal is even on the table. By all indications, it is not.

Which leads up to Punch Two: Financier and main money man Epstein--billionaire investor McCombs is reportedly in for less than 10 percent of the budgeted $300 million or so--would like to have Hellmund's 10-year F1 contract assigned to the Circuit of the Americas and not to Hellmund's Full Throttle Productions. Ecclestone has apparently offered Epstein a new contract, but not at the friends-and-family rate Hellmund received. For whatever reason, according to multiple sources, Epstein doesn't like the contract Ecclestone provided.

So later Tuesday afternoon, Circuit of the Americas, which apparently no longer includes cofounder Hellmund, issued a statement saying, "Organizers of Circuit of the Americas, a premier motorsports racing and entertainment venue being developed in Austin, Texas, are suspending further construction of the project until a contract assuring the Formula One United States Grand Prix will be held at Circuit of the Americas in 2012 is complete. The race contract between Formula One and Circuit of the Americas has not been conveyed to Circuit of the Americas per a previously agreed-upon timetable."

What "previously agreed timetable" is that? No one is talking. Presumably Hellmund expected to get paid for landing a 10-year F1 contract, a 10-year MotoGP contract, bringing Australian V8 Supercars to the United States, locating a site for the track, arranging for Hermann Tilke--the top F1 track designer in the world--to create it, and getting the State of Texas to advance the money for the sanctioning fee. Presumably he has not been paid what he expects. But again, no one is talking aside from prepared statements.

This is Hellmund's: "After years of effort in getting F1 to Austin, Full Throttle Productions and city, county and state officials have done all we could. It is the responsibility of Circuit of the Americas to bring it across the finish line."

In the past few months, there has been evidence that Epstein, who is used to running his own show, wants to run this one, too, which is sort of like George Steinbrenner insisting that he should coach his New York Yankees, except that Steinbrenner actually had some experience in baseball. Epstein may be guilty of thinking he can bluff or shame Ecclestone into awarding Austin a new sweetheart deal, but the F1 king has countries, tracks and promoters standing by, begging for a race. He does not need Austin, especially since he has the New Jersey race on tap beginning in 2013.

Thus, barring something that would qualify as a motorsports miracle, there will be no F1 race in Austin, which--according to Epstein's statement--means there will be no Circuit of the Americas, either.

So what will happen to this big, $40 million (that's dollars spent until now and a long way from what is needed for completion) mudhole near Austin? Perhaps the world's nicest RallyCross track? Presumably it could be completed as a less-ambitious, less expensive paved track, attracting lesser racing series, but only NASCAR Sprint Cup would essentially guarantee a profitable product, and Sprint Cup isn't coming to Austin.

Look at reality, and it has to be considered cautionary that IndyCar's recent, very successful Baltimore Grand Prix, which attracted a huge crowd for the street race, was unprofitable to the point where a second Baltimore race is not assured.

The only thing that seems certain in Austin is that it's just about time for lawyers to get involved. It's hard to imagine the plethora of lawsuits that could result from the Circuit of the Americas-Full Throttle conflict: the contractors, the designers, the suppliers? Oh, well.

Six months ago it seemed as if there was a gorgeous site just waiting to be one of the world's most interesting racetracks--a 10-year contract with the world's top auto and motorcycle series, adequate financing, happy politicians willing to help out, area businesses excited about the international crowd the races would draw, and subsequently all the building permits in place.

Now, nothing.

Tuesday, Nov. 15, 2011: Not a good day for race fans.

11-17-2011, 10:28 AM	#5
RACER X AMA Supersport Join Date: Nov 2008 Location: Richmond, Tx Moto: '10 Tuono Factory Posts: 4,569	http://www.autoweek.com/article/20111116/FREE/111119900 Game over for the U.S. Grand Prix and the Circuit of the Americas -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Recommend (24) The unfinished dream: This is turn seven of the planned Circuit of the Americas track near Austin, Texas. By: Steven Cole Smith on 11/16/2011 Related Articles Formula One: Texas comptroller says money not guaranteed for U.S. Grand Prix -------------------------------------------------------------------------------- Formula One: Austin's Circuit of the Americas suspends track construction; race under threat -------------------------------------------------------------------------------- U.S. Grand Prix in Austin: Ecclestone’s December deadline looms -------------------------------------------------------------------------------- Formula One: New Jersey Grand Prix confirmed for June 2013 -------------------------------------------------------------------------------- Formula One: Paper reports that work slows at Austin site; are changes looming for promoter Tavo Hellmund? Tuesday, Nov. 15, 2011, will go down as the day when the racing died in Austin, Texas. The 2012 Formula One United States Grand Prix and the track that would host it, the Circuit of the Americas, were dealt a one-two punch that seems unsurvivable--though neither the race nor the track has formally been pronounced dead. Of course, neither has Texas Gov. Rick Perry's presidential campaign, but we all know how that's going. The two punches that apparently finished off the race and the track, which have been ailing for six months, began when Texas comptroller Susan Combs, by far the biggest fan motorsports had in the state government, backed away on Tuesday from a gutsy incentive she helped engineer. Using a special state trust fund which, more than 200 times, has provided money to encourage big annual public events to come to Texas, Combs was going to advance race organizers $25 million a year, to be repaid by the projected additional tax money generated from the event, mostly from tourists. This $25 million, to be paid up to one year in advance of the U.S. GP, would have roughly covered the annual sanctioning fee to F1 honcho Bernie Ecclestone. This is a lot of money--probably double or triple a NASCAR Sprint Cup Series sanctioning fee--but it is also a comparative bargain, given what some race organizers in other countries must pay Ecclestone. This contract was assigned to Full Throttle Productions, headed by Tavo Hellmund, whose personal family relationship dating back 40 years with Ecclestone was an enormous factor in getting the deal. It was not assigned to the other two founding partners of the Circuit of the Americas, colorful businessman Red McCombs and Bobby Epstein, the low-key founder of a money-management firm. So here comes Punch One: Comptroller Combs, clearly weary of the infighting inside the track organization, announced on Tuesday that she would not advance the $25 million to the organizers, which--had all gone well--could have been paid as early as Saturday. The debut F1 race was scheduled for Nov. 18, 2012, and the guidelines, particular to this one race event, said the money could be advanced as early as 364 days before the event takes place. That option is gone. Now, the state would offer up the money after the race, assuming certain criteria were met. To get the race now, promoters would have to advance that $25 million out of pocket, assuming such a semisweetheart deal is even on the table. By all indications, it is not. Which leads up to Punch Two: Financier and main money man Epstein--billionaire investor McCombs is reportedly in for less than 10 percent of the budgeted $300 million or so--would like to have Hellmund's 10-year F1 contract assigned to the Circuit of the Americas and not to Hellmund's Full Throttle Productions. Ecclestone has apparently offered Epstein a new contract, but not at the friends-and-family rate Hellmund received. For whatever reason, according to multiple sources, Epstein doesn't like the contract Ecclestone provided. So later Tuesday afternoon, Circuit of the Americas, which apparently no longer includes cofounder Hellmund, issued a statement saying, "Organizers of Circuit of the Americas, a premier motorsports racing and entertainment venue being developed in Austin, Texas, are suspending further construction of the project until a contract assuring the Formula One United States Grand Prix will be held at Circuit of the Americas in 2012 is complete. The race contract between Formula One and Circuit of the Americas has not been conveyed to Circuit of the Americas per a previously agreed-upon timetable." What "previously agreed timetable" is that? No one is talking. Presumably Hellmund expected to get paid for landing a 10-year F1 contract, a 10-year MotoGP contract, bringing Australian V8 Supercars to the United States, locating a site for the track, arranging for Hermann Tilke--the top F1 track designer in the world--to create it, and getting the State of Texas to advance the money for the sanctioning fee. Presumably he has not been paid what he expects. But again, no one is talking aside from prepared statements. This is Hellmund's: "After years of effort in getting F1 to Austin, Full Throttle Productions and city, county and state officials have done all we could. It is the responsibility of Circuit of the Americas to bring it across the finish line." In the past few months, there has been evidence that Epstein, who is used to running his own show, wants to run this one, too, which is sort of like George Steinbrenner insisting that he should coach his New York Yankees, except that Steinbrenner actually had some experience in baseball. Epstein may be guilty of thinking he can bluff or shame Ecclestone into awarding Austin a new sweetheart deal, but the F1 king has countries, tracks and promoters standing by, begging for a race. He does not need Austin, especially since he has the New Jersey race on tap beginning in 2013. Thus, barring something that would qualify as a motorsports miracle, there will be no F1 race in Austin, which--according to Epstein's statement--means there will be no Circuit of the Americas, either. So what will happen to this big, $40 million (that's dollars spent until now and a long way from what is needed for completion) mudhole near Austin? Perhaps the world's nicest RallyCross track? Presumably it could be completed as a less-ambitious, less expensive paved track, attracting lesser racing series, but only NASCAR Sprint Cup would essentially guarantee a profitable product, and Sprint Cup isn't coming to Austin. Look at reality, and it has to be considered cautionary that IndyCar's recent, very successful Baltimore Grand Prix, which attracted a huge crowd for the street race, was unprofitable to the point where a second Baltimore race is not assured. The only thing that seems certain in Austin is that it's just about time for lawyers to get involved. It's hard to imagine the plethora of lawsuits that could result from the Circuit of the Americas-Full Throttle conflict: the contractors, the designers, the suppliers? Oh, well. Six months ago it seemed as if there was a gorgeous site just waiting to be one of the world's most interesting racetracks--a 10-year contract with the world's top auto and motorcycle series, adequate financing, happy politicians willing to help out, area businesses excited about the international crowd the races would draw, and subsequently all the building permits in place. Now, nothing. Tuesday, Nov. 15, 2011: Not a good day for race fans. __________________ ΜΟΛΩΝ ΛΑΒΕ 2014 GROM! 181cc of FURY 2010 Aprilia Tuono Factory - SOLD 2009 SFV Gladius - SOLD 2008 Hayabusa - SOLD.