Big Losses for Oz GP......Again.

[DAVID PATERSON]

Originally Posted by sizzle

Do they though. You and I as enthusiasts may but I am not sure the majority do.

Originally Posted by Spritle

The difference between Melbourne & Austin is that Australians actually care about F1.

Most of the spectators who go tothe Melbourne GP aren't racing fans or car enthusiasts, they're just sports fans or people who like to be part of an EVENT!

[DAVID PATERSON]

Originally Posted by E.B

TBH I wonder what impact, on smoking related matter, the loss of the F1 smoking sponsorship had on the world.

I dont think it would make non committed to smoking people start to smoke. The exercise of branding in F1 was more likely to incite a brand change in a generally brand loyal market. I can recall at times back then when as a smoker I might swap brand of ciggy in line with my F1 team interests...... Gold Leaf, JPS, Marlboro, hell, I even smoked Gitanes for a while when I had a Ligier moment. But I was a smoker who would buy anyway. It never influenced me to smoke or not to smoke. People did not suddenly stop smoking because F1 is no longer smoke friendly.

[/end of rant]

Throughout my childhood, my hero drive for the Malboro Holden Dealer Team and i have never smoked a cigarette in my life, never wanted to.

My Dad was a heavy smoker, but he never smoked the brands that his favourite driver was sponsored by.

Maybe the tobacco companies gave our sport all that money for nothing and maybe the nanny state cut it off for no reason..............

[Axeman444]

Originally Posted by DAVID PATERSON

Most of the spectators who go tothe Melbourne GP aren't racing fans or car enthusiasts, they're just sports fans or people who like to be part of an EVENT!

sure about that? just about every 2nd person i've ever seen there is drapped in ferrari merch

[Spritle]

Originally Posted by JeremySmith

How do you know that is going to happen, maybe you would like to explain to the audience?

Go ahead....

Because it is happening all over the world, especially in new venues where the folks really aren't passionate about F1. The seats are empty and the losses are rising or haven't you noticed. . How does a venue in a country that could care less suddenly become immune to the tide, especially in light of reports like this.

I don't know what Austin thinks they got that nobody else does that makes them immune, but past history in the US for F1 makes me believe it's nothing but optimism and a lot of smoke & mirrors.

[Marbot]

Headline: OZ GP saved as Webber is set to sign for another season at Red Bull.

http://www.crash.net/f1/news/170062/..._red_bull.html

Whether or not those losses would be acceptable if there wasn't a driver on the grid from the nation hosting the GP, is another matter. For example, will Texans turn up to watch a GP in which they currently have no team or driver? The Chinese don't, and the Turks certainly don't.

[Spritle]

Originally Posted by Marbot

For example, will Texans turn up to watch a GP in which they currently have no team or driver? The Chinese don't, and the Turks certainly don't.

While I realize that it's not an entirely relevant or fair comparison, even Scott Speed didn't do much to change the ho-hum attitude for F1 in the US.

It's unfortunate but at this stage in the game with no Mario Andretti on the horizon, nothing short of a US based F1 team that can actually show up and be successful will do anything to wrest the passion away from things like NASCAR, baseball and the NFL.

[wnut]

Originally Posted by Spritle

The difference between Melbourne & Austin is that Australians actually care about F1.

When Austin finally wakes up and realizes that they are losing their shirt, (and they will) on an event nobody cares about in the US; they may actually do something about it.

Melbourne population is also pushing 5 million people! I think someone quoted 660 000 for Austin!

[browney]

If the Melbourne GP can loose that much when it is so well attended, are there any GPs that make money, or has Bernie put a stop to that everywhere with his insanely high fees?

I think Bernie doesn't want a GP there, so would be happy to pump up fees until Australia can't afford one.

Did the Adelaide GP make money? Wiki says that the Adelaide GP in '95 had over 500 thousand people, compared to last years Melbourne GP which had ~300 thousand (maybe the size of the city isn't that important as Adelaide is 1/4 of the size of Melbourne).

[johnh875]

They instituted a lot of measures this year to cut costs, but some things caused extra costs in other areas - I think they still have room for improvement. Also surely the ever-increasing competitiveness of F1 and Mark Webber will help increase the crowds. However the organisers still have work to do on promotion, this year with the Red Bull run over Bolte Bridge was the first time in a few years that we heard boo on general news outlets about the race further out than the day before the event begins when the drivers start making appearances. Melbourne is a big 'event' city, but the GP doesn't seem to have really been taken to heart in the same way the tennis grand slam open has for example.

But if the next contract doubles the hosting rights fee, I think it is well over the top and will destroy any chance on keeping the operating loss to a liveable figure, and must surely see the race lost to Melbourne.

[chillibowl]

at what point do people stop blaming Bernie for everything and look at the local promoters and business people who cant make money of this event?

even a conservative estimation of attendance and ticket prices gives you an amount close to the suggested sanctioning fees.

for example lets just say 200 thousand people cross through the gates over the whole weekend at 100 dollars per entry (and im guessing the total number of people through the gates over the weekend and ticket prices are both much higher) thats 20 mil right there. and from what i heard thats the sanctioning fee.

i appreciate that Melbourne has higher costs in putting up and taking down the barriers every day etc, but when you start factoring in concessions, rents, advertising, and of course an nice in flow of public money to balance their books every year, i dont see how it is possible for the local promoter to be losing money.

i've said this before and i will say it again...its not Bernie who is robbing you, it is someone much closer to home.

[Tourer]

Originally Posted by chillibowl

at what point do people stop blaming Bernie for everything and look at the local promoters and business people who cant make money of this event?

even a conservative estimation of attendance and ticket prices gives you an amount close to the suggested sanctioning fees.

for example lets just say 200 thousand people cross through the gates over the whole weekend at 100 dollars per entry (and im guessing the total number of people through the gates over the weekend and ticket prices are both much higher) thats 20 mil right there. and from what i heard thats the sanctioning fee.

i appreciate that Melbourne has higher costs in putting up and taking down the barriers every day etc, but when you start factoring in concessions, rents, advertising, and of course an nice in flow of public money to balance their books every year, i dont see how it is possible for the local promoter to be losing money.

i've said this before and i will say it again...its not Bernie who is robbing you, it is someone much closer to home.

Some truth in what you're saying and Melbourne is a very big event with a huge staff requirement and complex event build structure so its annual running costs would not be low.

Think that you're wide of the mark with the sanctioning fee amount though - widely reported (whether accurately or not is another thing) in Melbourne press as circa $50 mill per year. If that is correct, making that change to your post would show the loss as real.

[JABWOA]

The key thing about the AGP is that is lost $50mill, not spent $50mill - it does generate direct income from ticket sales and corporate (but nowhere near enough true) but the costs are more - especially the big ticket item of the sanctioning fee which as per the signed contract (by the previous labour government) goes up every year.

AustinGP signing with the MotoGP was reported everywhere at the time it occured - but from the horses mouth - http://www.motogp.com/en/news/2011/T...unced+for+2013