HondaF1
Aussie Bastard
Im posting a new thread for this because I think this could develop into a massive story. I found this on foxsports.com.au today
Australian GP under cash cloud
March 16, 2007
THIS weekend's Australian Grand Prix is being held against a backdrop of questions over its future with reports the occasion will lose $30 million.
Concerns have focused on dwindling crowds, the loss of popular V8 Supercars support race, and whether the Victoria government-backed event is value-for-money for taxpayers.
Melbourne is staging its 12th grand prix since pinching the race from rival city Adelaide, but some economists say rising costs and falling attendances mean the grand prix has a limited lifespan in Melbourne.
One economist estimated the race will lose more than $230 million by the time the current contract expires in 2010.
But race organisers and state government ministers insist that the bottom line is not the only measure of the race's importance to Victoria.
They point to three economic reports compiled on the Australian Grand Prix Corporation's behalf, analysing the 1996, 2000 and 2005 events.
Those reports show what is termed as a gross economic benefit to the state of Victoria of $95.6 million in 1996, $130.7 million in 2000 and $174.8 million in 2005.
The last report found the event enticed more than 8000 international visitors to the city and almost 20,000 from other parts of Australia each year.
Australian Grand Prix Corporation chairman Ron Walker said the race is watched on television by 360 million people in 132 nations, generating about $100 million.
"If you had to advertise Melbourne to 360 million people in 132 countries, it would cost you $100 million," he said.
"In 10 years of Formula One racing in Melbourne it is estimated that the event has generated over $1 billion in economic benefit.
"The grand prix has put Melbourne on the map globally and year after year it provides unquestionable tourism and promotional benefits for the state of Victoria."
But some economists disagree, with one, Francis Grey, telling The Age newspaper: "Economically, the race is a loser, every year.
"It's been a loser since the beginning, and the losses are only growing larger. Victorians are poorer as a result of having this race.''
Monash University economics professor Peter Forsyth wrote in a 2006 paper saying that "the economic impacts and net benefits of events, if rigorously assessed, are very much lower than those invariably claimed.
"The techniques of analysis widely used have inherent biases, which lead to overstatement of impacts on output and jobs."
"As a result," Forsyth wrote, "there is likely to be misallocation of events funding and excessive overall spending in promoting events."
While the Australian Grand Prix has never returned a profit in Melbourne and has grown more expensive each year, Formula One supremo Bernie Ecclestone receives a licence fee that increases every race and is widely reported as being currently $20 million, The Age read.
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Is this the opening Adelaide needs to make a bid and get the race back sooner than 2010?? Keeping in mind that Adelaide usually posted a profit by race day.
Australian GP under cash cloud
March 16, 2007
THIS weekend's Australian Grand Prix is being held against a backdrop of questions over its future with reports the occasion will lose $30 million.
Concerns have focused on dwindling crowds, the loss of popular V8 Supercars support race, and whether the Victoria government-backed event is value-for-money for taxpayers.
Melbourne is staging its 12th grand prix since pinching the race from rival city Adelaide, but some economists say rising costs and falling attendances mean the grand prix has a limited lifespan in Melbourne.
One economist estimated the race will lose more than $230 million by the time the current contract expires in 2010.
But race organisers and state government ministers insist that the bottom line is not the only measure of the race's importance to Victoria.
They point to three economic reports compiled on the Australian Grand Prix Corporation's behalf, analysing the 1996, 2000 and 2005 events.
Those reports show what is termed as a gross economic benefit to the state of Victoria of $95.6 million in 1996, $130.7 million in 2000 and $174.8 million in 2005.
The last report found the event enticed more than 8000 international visitors to the city and almost 20,000 from other parts of Australia each year.
Australian Grand Prix Corporation chairman Ron Walker said the race is watched on television by 360 million people in 132 nations, generating about $100 million.
"If you had to advertise Melbourne to 360 million people in 132 countries, it would cost you $100 million," he said.
"In 10 years of Formula One racing in Melbourne it is estimated that the event has generated over $1 billion in economic benefit.
"The grand prix has put Melbourne on the map globally and year after year it provides unquestionable tourism and promotional benefits for the state of Victoria."
But some economists disagree, with one, Francis Grey, telling The Age newspaper: "Economically, the race is a loser, every year.
"It's been a loser since the beginning, and the losses are only growing larger. Victorians are poorer as a result of having this race.''
Monash University economics professor Peter Forsyth wrote in a 2006 paper saying that "the economic impacts and net benefits of events, if rigorously assessed, are very much lower than those invariably claimed.
"The techniques of analysis widely used have inherent biases, which lead to overstatement of impacts on output and jobs."
"As a result," Forsyth wrote, "there is likely to be misallocation of events funding and excessive overall spending in promoting events."
While the Australian Grand Prix has never returned a profit in Melbourne and has grown more expensive each year, Formula One supremo Bernie Ecclestone receives a licence fee that increases every race and is widely reported as being currently $20 million, The Age read.
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Is this the opening Adelaide needs to make a bid and get the race back sooner than 2010?? Keeping in mind that Adelaide usually posted a profit by race day.