Government cash needed for Grand Prix extension
Paul Gover
June 20, 2008 07:31am
THE future of the Australian Grand Prix should be decided within a month. And it will come down to money.
Despite the arguments at Albert Park in March, mostly over the start time and prospects of a night race, a deal beyond 2010 now hinges on the financial commitment from the Victorian government.
Signs are positive after an upturn in attendance this year, which is certain to reduce losses, and a meeting in London this week between Australian GP chairman Ron Walker and F1 supremo Bernie Ecclestone.
Walker returned with Ecclestone's terms and, given the close relationship the pair has forged since Melbourne Major Events poached the race from Adelaide, it is likely to be a deal that can satisfy both parties.
The Grand Prix Corporation is not talking about the meeting, or what Walker brought back to present to Premier John Brumby, but there are growing hints of a workable deal for the third extension of the AGP contract with F1 Management.
The first deal for the Albert Park race ran for three years and there have been two five-year extensions.
"When we've got something to say we'll be doing it," AGP chief executive Drew Ward said.
"When discussions are finalised you can be assured that the premier will be making an announcement."
Ecclestone threatened to take the AGP from Melbourne if it was not converted to a night race, to make it more European-viewer friendly.
The inaugural Singapore Grand Prix later this year has been built on an after-dark platform and the Malaysian GP, is also close to a long-term commitment to a night race.
But AGP organisers resisted the move, despite a potentially cost-effective deal on lights from Hella in Melbourne, because of several problems, including noise curfews and lighting costs.
With the race consistently losing money, the state government said, at the time, it would not move on its negotiations with Ecclestone.
But the start time was moved back and it is now believed the race will start at 5pm in both 2009 and 2010, when the current contract ends.
This raises the prospect of a major V8 Supercar contest on race day, and another post-race concert.
Ward hinted yesterday that signs are positive for an AGP extension beyond 2010.
"A lot of the changes and innovations we made for this year were well received. The reported attendance this year was 303,000, which is up from 301,000 (in 2007)," he said.
"Given that there were three days close to 40C, I find it a great testament to the enthusiasm of the Melbourne event and public."
He said the KISS concert was a major winner and something similar would be part of the AGP program in future.
"The core of the event is Formula One, and motor racing, but there is an opportunity to do other things around that," Ward said.
"We're in discussions with a whole range of entertainment propositions for 2009, including the post-race concert. The KISS concert this year has established Albert Park as a live-music venue and some opportunities have been floated past us."
Ward knows there are limited places on the F1 schedule, with pressure on existing events and a queue of prospective hosts.
The San Marino grand prix in Italy has been dumped, the French grand prix must find a new home or be eliminated, and the British grand prix must also commit to a major upgrade of its Silverstone facilities.
The French and British events were two of the four protected under the Concorde Agreement that governs F1, together with the Monaco and Italian races, but this has lapsed and negotiations for a replacement have stalled.
And Ecclestone is fielding offers from government-backed bidders prepared to pay up to $50 million a year.
"We understand that Abu Dhabi comes in 2009. Singapore, of course, is in September," Ward said.
"There is talk of India in 2010 and there has been talk of Korea and Russia."
This means the Victorian government will have to move fast, and underwrite a major spend, to keep the Australian Grand Prix beyond 2010.
