by Cody Globig – Q4G F1 Contributor
credit The Daily Mail
Over the weekend I began hearing (well, reading on Twitter…) rumors about how Bernie Ecclestone’s dream-come-true race in New York City was a reality and that it would be announced on Tuesday. Now, I’m the biggest Formula One fan (read, techy nerd) there is, but I’m always a skeptic when it comes to rumors about a race in the US. I went to the USGP at IMS in ’06 and ’07 (so sad I missed the great days of the V10s) and I know much about what went down between Tony George and Bernie and how the deal to run a USGP at the Brickyard fell apart. My hopes and dreams (and 2-hour drive access) were shattered when Indy lost the Grand Prix. Now I’ve allegedly got something to be excited about once again…
The glitz and glamour (yes, it’s even classy in the stands and spectator areas in the infield at IMS for the most part too!) of the F1 circus is coming back to our shores next year. The Circuit of the Americas will be hosting a Formula One race that I may actually be able to go to, and now, lo and behold, today we get an announcement that the US will be getting a second race in 2013!
Yes, my pessimism was proven wrong while I was at work today. Luckily I sell electronics for a living at a major department store and I had my one TV that has a satellite connection on the SPEED Channel at 2 p.m. to see the press conference from – wait for it – Weehawken, NJ.
I guess I should have noticed the signs of the imminent announcement today. You know, those gay-boy signs we get every so often… In this case, it was my latest obsession of listening to Ellie Goulding’s “Lights” over and over again on YouTube while I did homework last night (and as I write this). I should have noticed that I was compulsively listening to a song about shiny lights on the eve of a major announcement by a major metropolitan area in the US talking about coming to a 10 year deal with FOM to stage a street race with Manhattan as a backdrop.
The circuit looks absolutely fantastic. No streets will have to be redone, no part of the course will go through a parking lot (i.e. the Dallas GP in the ‘80s), and the pit complex will be permanent and is already being built. This means that the track will be cheap to setup, only requiring barriers/fencing and temporary stands to be erected. This is great news for the promoters (Humpy Wheeler apparently) because every person was adamant at the press conference that, “No taxpayer subsidies will be used for this event. It is 100% privately funded by the promoters.”
Now herein lies my skepticism… Formula One is continuing to lose their races at the storied circuits of the world because all of these new races in the Middle and Far-East are paid for almost entirely with government money. It really has to be that way in today’s F1 race market because of Bernie’s astronomical (read $25m) sanctioning fee (with a +10% hike each year), and how FOM garners all of the profits from the sale of anything at the race except ticket sales. That is the only revenue stream the promoters have at their disposal. I will be perfectly honest with you guys, gals, and everything in between: I don’t think a privately funded F1 race will last more than its first year. COTA has the Major Events Fund in Texas to help pay the bills, but their bills are also astronomical because of the cost of creating the circuit in the first place. Hopefully their revenue from other racing series (like my baby: the V8 Supercar Series in 2013, and also MotoGP, among others to be added) and rent for the industrial park they’re building on site will be enough to let the facility survive.
So here’s a synopsis of the feasibility of the two American Formula One events we have to look forward to:
COTA, Permanent Circuit
Pros
- Mildly exciting Tilkedrome circuit design
- Massive industrial park on the grounds
- Basis of technology and automotive education initiatives
- Green technology and sustainability (apparently)
- Multiple racing series
- Can hold events year round
- Has confirmed government subsidy
Cons
- Mildly exciting Tilkedrome circuit design
- Freakishly expensive to build
- Must be maintained year round
- Massive sanctioning fee for F1
Weehawken, NJ, Street Circuit
Pros
- Very exciting circuit design
- Reasonably cheap to erect b/c of no street modifications
- Great metro location near Manhattan
- Green transportation (all access to circuit is by public transport)
Cons
- Massive sanctioning fee for the only event it will have
- No government subsidy (Where the hell is all that money coming from?!)
Lastly, The Odds of the US keeping either or both races? COTA = 50% NJ = 50%
I’m waiting with baited breath!