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Australian GP under renewed threat

NEWS STORY
24/07/2011

Mat Coch writes:

The Australian Grand Prix has come under renewed scrutiny after it was revealed the event's losses rose to more than AUD $50m (£33.2m) this year. Funded by the Victorian State Government, many tax payers have grown increasingly unhappy, not only with the financial impact the race has on the state but the inconvenience it causes.

A number of government officials have claimed over the years that while the race runs at a loss, the benefit to the state of Victoria is greater than the cost of the Grand Prix. However, a recent audit of the event by Ernst and Young has suggested that while creating 350 full-time jobs, its economic benefit is not greater than AUD $39m (£26m). Declining ticket sales and an increasingly vocal opposition from Victorian tax payers has put further pressure on the Government to axe the event sooner rather than later.

Melbourne holds a contract to host the Australian Grand Prix until at least 2015, after which some sections of the media suggest the race could be re-homed. Much of that speculation has pointed towards Sydney; however investigations by Pitpass ruled out such a move claiming it is political posturing.

The new political leadership in New South Wales has not expressed any great interest in the race, while financially the event doesn't make a great deal of sense for the state. Pitpass also learned that any bid for the Grand Prix would rely on the sport making a number of concessions, including a return to an early afternoon race start after Melbourne opted for a twilight time slot to appease European television audiences. Sydney would also look to break with tradition and hold any event on a Saturday afternoon.

It's improbable then that the race will find a home in Sydney, which doesn't even boast an FIA graded circuit. In truth, as Pitpass has previously revealed, there are no viable options should the event need to leave Albert Park. Therefore should Melbourne decide it has grown tired of the Grand Prix, and without an alternative host ready to step in to the breach, there seems little hope the race would remain in Australia.

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