Bernie threatens Australia !

[driveace]

According to Australia,s Sunday Mail, Bernie has threatened that if the Baillieu government cuts its cash handout to the Australian F1 event,it could be taken away from Australia.Bernie said that unless taxpayer kept pouring in at least $55 million a year into the race,it will be taken away.Adding If we were having a divorce from our friends in Melbourne,we would probably be walking away from Australia .
Is it ALL about money to Bernie ?

[Tazio]

Doesn't Bernie find a reason to threaten to take away the Australian GP about every four or five years? ;)
He is like a used car salesman that graduated to pimp :p

[MAX_THRUST]

Every year he threatens the same old tracks with this. Its all about the money. If all the tracks said fine stuff you, then he would soon run out of quality tracks with history, and that would take away some of the importance of some races. It takes years to build aup tradition and history, it just doesn;t happen over night. Take Korea, its not exactly steeped in racing history and for that reason it would never be as poplular as Monza, Silverstone, Monaco Spa etc.

Suatralia's contract runs out in a few years, bernie will not live for ever and then who ever takes over may have a different view. May Bernie stay in good health, I'm not wishing him ill will here.

[Dave B]

You could set your watch by Bernie's threats.

[TheFamousEccles]

Go ahead Bernie. Many of us are bored with this periodic sabre rattling. As much as I like F1, I wouldn't be too upset for the Victorian state government to spend the millions on schools and hospitals :rolleyes: or more likely spend it on the rent seekers like the mining and retail industries, but that's a rant for another day and place...

Either way, bored now Bernie. Take your night race and go forth.

[ShiftingGears]

He should take it and leave.

[Hawkmoon]

Bernie's argument is that the race is so unprofitable that the government must keep paying or he will take away the race? Way to sell your product Bernie.

[schmenke]

It is not up to the FOM to decide the source of funding for a GP event.
The FOM signs a contract agreement with the event organiser whose responsibility is to secure funding.
The Australian situation is very similar to the Canadian GP event where it is only profitable if government funding is injected. The FOM does not deal directly with the Government of Canada, but with the event promoter, Octane Management, who secures funding from various even sponsors, private and public.

[steveaki13]

Bernie is just doing what he does, asking for more money or he else he'll go to the next Arab or Far Eastern state with billions burning a hole in their pockets.

F1 could do with Bernie retiring to a nice beach somewhere.

[DexDexter]

Bernie's argument is that the race is so unprofitable that the government must keep paying or he will take away the race? Way to sell your product Bernie.

It's not as simple as that. As I've stated many many times, lower fees mean less money to the teams and that's bad for F1.

[nigelred5]

Bernie is just doing what he does, asking for more money or he else he'll go to the next Arab or Far Eastern state with billions burning a hole in their pockets.

F1 could do with Bernie retiring to a nice beach somewhere.

See, Bernie has more contracts for future races than he has weekends the teams will agree to participating in. He needs to drop a race for Russia next year doesn't he? follow the money, and you will find Bernie. He conveniently lost the USGP for a while, picked up a few multi million contracts with new events, and then he thins the herd. Then once he has the $$, like for instance Valencia, sees that it's a failure on just about all accounts, he moves on, drops the race, adds another. so now we alternate german venues, likely alternate, france and belgium, possibly valencia and Barcelona, or jsut loose one altogether. Bahrain looks to me to be a hug e longshot for returning, Korea was and will be a waste of time. Shanghai, same IMHO. I understand dumping races noone attends, but he dumps popular well attended races that STILL can't meet his financial demands for races NO ONE attends simply because someone has a fat bank account. India was suprizingly well attended, AbuDhabi is an amazing facility and much more western and stable politically than Bahrain, and I think Singapore has been a success by most accounts, but most of the other tracks added in the past ten years have been total failures commercially. As was tried a few years back, F1 needs a budget downsizing IMHO.

[ioan]

Doesn't Bernie find a reason to threaten to take away the Australian GP about every four or five years? ;)

More like every year, about 2 weeks before the season starts.


He is like a used car salesman that graduated to pimp :p

That's exactly what the situation is. Spot on.

[ioan]

It's not as simple as that. As I've stated many many times, lower fees mean less money to the teams and that's bad for F1.

Really? That means that the model is flawed and should be changed. In fact there would be enough money for the teams if it wasn't for someone else pocketing the largest part of it.

[DexDexter]

Really? That means that the model is flawed and should be changed. In fact there would be enough money for the teams if it wasn't for someone else pocketing the largest part of it.

I agree with that in principle but current contracts are what they are. I'm sure Bernie & co would still make a nice profit even if they got something like 20% less money.

[BDunnell]

See, Bernie has more contracts for future races than he has weekends the teams will agree to participating in. He needs to drop a race for Russia next year doesn't he? follow the money, and you will find Bernie. He conveniently lost the USGP for a while, picked up a few multi million contracts with new events, and then he thins the herd. Then once he has the $$, like for instance Valencia, sees that it's a failure on just about all accounts, he moves on, drops the race, adds another. so now we alternate german venues, likely alternate, france and belgium, possibly valencia and Barcelona, or jsut loose one altogether. Bahrain looks to me to be a hug e longshot for returning, Korea was and will be a waste of time. Shanghai, same IMHO. I understand dumping races noone attends, but he dumps popular well attended races that STILL can't meet his financial demands for races NO ONE attends simply because someone has a fat bank account. India was suprizingly well attended, AbuDhabi is an amazing facility and much more western and stable politically than Bahrain, and I think Singapore has been a success by most accounts, but most of the other tracks added in the past ten years have been total failures commercially. As was tried a few years back, F1 needs a budget downsizing IMHO.

Bernie deserves much, much more criticism than he has ever received for the Bahrain fiasco — and he's been on the receiving end of quite a lot. The whole affair is a disgrace.

[Rollo]

As a taxpayer... please take it away Bernie. I don't really want to be subsidsing your salary.

I'm writing a letter to my local MP and to the Minister for Immigration and Customs asking them to deny the little imp entry to Australia on the grounds that he is an extortionist.

Go away Bernie. Please sit on the pointy end of a pineapple.

[ioan]

I agree with that in principle but current contracts are what they are. I'm sure Bernie & co would still make a nice profit even if they got something like 20% less money.

They've already got too much, could start giving back something to the sport that made them filthy rich.

[ioan]

Bernie deserves much, much more criticism than he has ever received for the Bahrain fiasco — and he's been on the receiving end of quite a lot. The whole affair is a disgrace.

Exactly.

[CNR]

when you look at how many australians are in f1 in one way or another i do not see why it should be 55 million per year

[DexDexter]

when you look at how many australians are in f1 in one way or another i do not see why it should be 55 million per year


Correct me if I'm wrong but didn't it all start when Melbourne wanted the F1 race at any cost? I doubt they'd be paying such a huge fee in Adelaide.

[schmenke]

Bernie Ecclestone does not pocket the revenues from venue contracts.
The FIA receive some of it, the teams some, the rest is by and large used to compensate the investors of the CVC Group, the holding company of the FOM, and which Bernie is a minority shareholder. The CVC stakeholders invested hugely into the FOM and Bernie was originally appointed to manage that particular asset. He has an enormous responsibility to generate a return on the original investment owed to the CVC group.

Public money being used to fund an F1 event is something that requires careful study. I use again the example of the Canadian GP. When that contract was renewed a few years ago a study demonstrated that the economic return generated for the Montreal area justified funding assistance from the government. So, although taxpayers may feel a pinch in their pockets, the stimulus to the local economy offsets this in the long run.

[ioan]

Bernie Ecclestone does not pocket the revenues from venue contracts.
The FIA receive some of it, the teams some, the rest is by and large used to compensate the investors of the CVC Group, the holding company of the FOM, and which Bernie is a minority shareholder. The CVC stakeholders invested hugely into the FOM and Bernie was originally appointed to manage that particular asset. He has an enormous responsibility to generate a return on the original investment owed to the CVC group.


A bit of a contradiction there.
And also let's not forget that he used to pocket a fair share of that money since like ever.

[schmenke]

Sorry, I was trying to dispel the myth that Bernie is the sole recipient of the revenues. He is paid by the FOM, but revenue from venue contracts is largely used to reimburse the debt owed to the CVC group.

[TheFamousEccles]

Correct me if I'm wrong but didn't it all start when Melbourne wanted the F1 race at any cost? I doubt they'd be paying such a huge fee in Adelaide.

:up:

[ioan]

Sorry, I was trying to dispel the myth that Bernie is the sole recipient of the revenues. He is paid by the FOM, but revenue from venue contracts is largely used to reimburse the debt owed to the CVC group.

I know, I was just cherry picking. ;)

[F1boat]

Ecclestone must follow Mosley and relieve the world of Formula One from his stinking presence. I know that I am using an extremely rude language, but this horrid little man is turning the sport into a bizzare Orient express show and has axed some great tracks. He might have been a great influence, once, but that was long time ago. Now he is a greedy, ugly leprechaun, who is ruining my favorite sport.

[call_me_andrew]

Somehow Bernie and Australia make for an interesting study of abusive relationships.

[rjbetty]

I wish Bernie would threaten some Tilke tracks, or Hungary. But they're set in stone forever...

[call_me_andrew]

Turkey wasn't.

[ioan]

I wish Bernie would threaten some Tilke tracks, or Hungary. But they're set in stone forever...

Not sure about Hungary, they are in dire financial situation and might default one day.

[Garry Walker]

Turkey wasn't.

Which was the best of Tilke tracks.

[harbourgirl]

I was just having a discussion yesterday about how it was time that Bernie retired and left the sport alone (I think it had something to do with the stupidity of when the Malaysian Grand Prix was held and the torrential rain that was expected every single year)

I live twenty minutes from Eastern Creek so I say bring it back to Sydney ;) haha. (May not be in the interest of the sport but it's in my interests!)

But in all seriousness, I would fully support the Victorian Government if they told Bernie to take his greed elsewhere. There are more important industries that need that money.

[aryan]

Turkey wasn't.

Yeah, the one good Tilke track, and they got rid of it :-|

[Rollo]

I live twenty minutes from Eastern Creek so I say bring it back to Sydney ;) haha. (May not be in the interest of the sport but it's in my interests!)


Eastern Creek is managed by the ARDC, so that pretty well much means that no international sporting events will ever be held there again.
If you look at Amaroo Park and Oran Park's calendars for season 2012 you'll see just what the ARDC can do to a racing circuit.

The current NSW Government couldn't hold a piss-up in a brewery (neither could the last for that matter). I don't think that they're going to front up any money for anything for a long time.

[raybak]

Eastern Creek is managed by the ARDC, so that pretty well much means that no international sporting events will ever be held there again.
If you look at Amaroo Park and Oran Park's calendars for season 2012 you'll see just what the ARDC can do to a racing circuit.

The current NSW Government couldn't hold a piss-up in a brewery (neither could the last for that matter). I don't think that they're going to front up any money for anything for a long time.

Amaroo Park has been closed for over 20 years, you must mean Wakefield Park.

The NSW government is only fronting up money for the Street Circuit at Homebush instead of putting that money into a permanent international circuit.

Ray

[Rollo]

Amaroo Park has been closed for over 20 years, you must mean Wakefield Park.

No. I do mean Amaroo Park. It's houses now. Oran Park is also a housing development - Oran Park Town : Homepage (http://www.oranparktown.com.au/)
That's what happens to motor racing circuits when the ARDC gets hold of them - Close the circuit to everything but club events, mismanage the place, wonder why there's no revenue coming in, watch as the circuit falls into disrepair, sell circuit to housing developers.