Home Mobile Forum News Cookbook FaceBook Us T-Shirts etc.: Europe/Worldwide. eBay Motorsport Links Advertising Live Chat  
Site Partners: SpotterGuides  
Related Sites: Your Link Here  

Go Back   TenTenths Motorsport Forum > Single Seater Racing > Formula One


Reply
 
Thread Tools Display Modes
Old 3 Nov 2004, 09:01 (Ref:1143672)   #1
Super Tourer
Subscriber
Veteran
 
Super Tourer's Avatar
 
Join Date: Jan 2000
United Kingdom
East Anglia
Posts: 4,301
Super Tourer should be qualifying in the top 3 on the gridSuper Tourer should be qualifying in the top 3 on the gridSuper Tourer should be qualifying in the top 3 on the gridSuper Tourer should be qualifying in the top 3 on the grid
Australian GP financial report.

It's not often we get a glimpse behind any of the finances involved in F1. The Grand Prix Corporation, headed by Ron Walker (a staunch supporter of Bernie E), have released their figures.

The Australian Grand Prix cost the state $9.5m in 2003-2004 according to the latest report from the grand prix corporation. This year's figures reveal an increased attendance of 3.5%, resulting in ticket sales of $30m, with total revenues up to $38m. But expenditure has increased by 6.2% to $47m. This is due to contractual commitments to FOM, the cost of corporate catering and facilities and the extra costs incurred improving safety.

The race has, on paper, lost money on an on-going basis.

Losses from the event are increasing with each year. Obviously calculations involving the historical exchange rates are complicated but we calculate that in 2001 the
event lost $2.9m, in 2002 that went up to $4.8m and in 2003 it reached $6.9m.


Some of this is down to the costs of holding an event largely based on temporary structures which are costly to build and remove, however it's worth contrasting that with the cost of building a new 'world class' facility, which BE is so keen on. We know that this can be any figure you like, from $200M upwards.

However, according to Ron walker the 'on paper' losses are offset by an economic benefit to the state of $700M since the first race in 1996.

It's an interesting insight that shows that whilst the event provides some sort of quantifiable benefit, some state funds will support it. However, it also shows that even a very successful and popular race like Melboure, would not stand on it's own two feet financially.

It's probable that Melbourne is not on the same huge cost terms that BE is asking from the emerging countries, which is alleged to be $30M in fees from FOM to hold a race.

http://www.grandprix.com/ns/ns13784.html

Last edited by Super Tourer; 3 Nov 2004 at 09:51.
Super Tourer is offline  
__________________
'I've seen it, but still don't believe it.....'
Quote
Old 3 Nov 2004, 11:18 (Ref:1143754)   #2
RWC
Veteran
 
Join Date: Apr 2001
Location:
Qld.-australia
Posts: 2,083
RWC should be qualifying in the top 10 on the grid
Oh well,good luck to 'em i guess.If they wan't to waste money for the sake of having an excuse for a party/event that's ok (Something you can't deny the victorians-they love their sport!).Pity it's that amoral political f1 cr*p though.

I'm one of those that are extremely doubtfull of the usual 'economic benifits' they constantly trumpet -because a LOT of the punters attending the race are simply locals anyway....net economic benifit to the state from them is *nill*

However i did some very basic math and found that -in this case- the government is losing some money but some groups like hotels are likely making alot more than that loss...
RWC is offline  
Quote
Old 3 Nov 2004, 21:31 (Ref:1144299)   #3
pirenzo
Race Official
Veteran
 
pirenzo's Avatar
 
Join Date: Dec 2002
United Kingdom
London, UK
Posts: 10,225
pirenzo should be qualifying in the top 5 on the gridpirenzo should be qualifying in the top 5 on the gridpirenzo should be qualifying in the top 5 on the grid
That's no different to any other race.
I think Melbourne does quite well compared to many others. I doubt any of the race organisers make a profit or even close.
pirenzo is offline  
Quote
Old 3 Nov 2004, 23:25 (Ref:1144389)   #4
jetsetter
Veteran
 
Join Date: Sep 2001
Australia
Ipswich Qld Australia
Posts: 2,508
jetsetter should be qualifying in the top 10 on the grid
When you compare the Melbourne attendances to some others in F1 then if that event runs at a loss then quite a few GP's around the world must as well but as Ron Walker states the money it makes for Melbourne are phenomenal as it brings F1 fans in to Melbourne once a year that normally wouldn't travel there which has to be good for the states economy.
jetsetter is offline  
Quote
Old 4 Nov 2004, 08:03 (Ref:1144541)   #5
climb
Veteran
 
climb's Avatar
 
Join Date: Mar 2003
St Pierre and Miquelon
closer than you thought!
Posts: 4,511
climb should be qualifying in the top 10 on the gridclimb should be qualifying in the top 10 on the grid
Maybe the State should apply some tax on that extra revenue, to recover the moeny lost, e.g. on food, beverages and merchandising sold round the track, as well as hotel fares for the race weekend.
A very very small tax put on many things sold wouldn't even be perceived by the attenders, and could solve the problem.
climb is offline  
__________________
You got to learn how to fall, before you learn to fly
P.Simon
Quote
Old 4 Nov 2004, 08:45 (Ref:1144573)   #6
cavvy
Veteran
 
cavvy's Avatar
 
Join Date: Aug 2004
Location:
Melbourne Victoria
Posts: 3,224
cavvy should be qualifying in the top 10 on the grid
Quote:
Originally posted by climb
A very very small tax put on many things sold wouldn't even be perceived by the attenders, and could solve the problem.
Climb,
The prices that are charged, add a bit more, I'd have to sell my caravan, sold the house to go in 2000.
I believe the economic activity argument but only after doing my own research.
The same logic is used for the WRC round in West Australia, which due to different time zones gets almost nil coverage in the rest of Australia.

Last edited by cavvy; 4 Nov 2004 at 08:46.
cavvy is offline  
__________________
more torque than a climate change conference
Quote
Old 4 Nov 2004, 09:20 (Ref:1144596)   #7
climb
Veteran
 
climb's Avatar
 
Join Date: Mar 2003
St Pierre and Miquelon
closer than you thought!
Posts: 4,511
climb should be qualifying in the top 10 on the gridclimb should be qualifying in the top 10 on the grid
I just did a theoretical calculation:
if the state loss is 7 millions and the total general revenue is 700 millions, an 1% more would solve the problems.
I mean, paying a hamburger, say, 4.04 instead of 4.00 dollars, or a hotel room 80.80 dollars instead of 80.00 shouldn't make you bankrupt, I reckon.
climb is offline  
__________________
You got to learn how to fall, before you learn to fly
P.Simon
Quote
Reply

Bookmarks




Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Financial troubles for A1? climb A1GP 158 8 Mar 2006 16:20
Ferrari's financial problems Valve Bounce Formula One 25 12 Jun 2002 12:44
Australian F1 GP - The report elephino Trackside 11 20 Mar 2000 10:26


Powered by vBadvanced CMPS v3.2.3

All times are GMT. The time now is 07:50.


Powered by vBulletin® Version 3.8.9
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Original Website Copyright © 1998-2003 Craig Antil. All Rights Reserved.
Ten-Tenths Motorsport Forums Copyright © 2004-2016 Royalridge Computing. All Rights Reserved.