Quote:
Originally Posted by strupgolf
You had better go now, because I think it will be bankrupt within 5 years. Bernie is going to be fed up with lower attendance and he'll take his dog and pony show to some kingdom with no toilets and a gazillion dollars.
|
Attendance figures are largely irrelevant to Bernie, other than the TV optics. He and his overlords at CVC get their contractually guaranteed fee regardless of whether anyone shows up or not. If 10 people show up in Austin it would look bad, but CVC wouldn't lose a cent. (see Bahrain, China, Korea et al...)
Attendance is also of secondary importance to COTA organizers. They could never come close to even paying the race fee based on the gate alone, which is their only major revenue stream.
The modern F1 business model is basically a scheme of bilking local governments for the annual race fee. (with +10% annual ladder increases for the contract term) It virtually requires government funding (either directly or through considerable tax incentives) to make any sense for an organizer. COTA is no exception.
The sole reason the US race is viable is the annual $29M+ (last year) payment to COTA from the Texas Major Events Trust Fund. The minute that annual payment from the METF is not renewed, the F1 race will cease to be held there. The most important person on the podium at Austin last year was not Lewis or Finger Boy, but Susan Combs, the state comptroller who largely directs those funds.
Tim