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Carey admits existing races will be replaced

NEWS STORY
14/11/2018

While the future of the British Grand Prix is already in doubt - there being no contract after 2019 - a number of other events are also in danger, not least Interlagos host of last weekend's Brazilian Grand Prix.

Speaking today at Liberty's Annual General Meeting, F1 boss Chase Carey offered little hope for Silverstone, Interlagos or a number of other circuits, such as Monza, known to be struggling to meet the ever increasing hosting fees.

Indeed, as the sport welcomes the likes of Vietnam, Carey warned that Liberty Media's intention to expand the sport will be at the cost of existing races.

"We expect to expand our calendar beyond our current 21 race schedule," he said. "Expansion will be modest but we have been excited by the number, quality and diversity of new locations interested in hosting a race.

"We expect to replace a few existing races where we inherited unattractive agreements with new events or agreements that are better for racing and provide more value," he added."

Under intense pressure from financial journalists at last week's investors press conference, Carey admitted that a fall in the sport's stock price had been fuelled by a number of issues, not least the failure to agree a new Concorde Agreement committing the teams to the sport, the current agreement ending in 2020.

While he seeks to get the teams to sign up to this, a tough call in light of the teams' different opinions of the budget cap and change to the prize money allocation, Carey also admitted to looking to increase the prize pot by not only increasing the number of races but introducing more sponsors.

"We have previously identified sponsorships as the area where we expect to make the most headway by 2020 and that continues to be true," he said.

"All in all our sponsorship efforts are more time consuming than initially expected but we are encouraged by the enthusiasm and our efforts are starting to bear fruit."

"We expect to begin to drive bottom line growth in 2019 and that will continue into 2020 and beyond," he insists, though financial analysts remain sceptical.

As it stands, no less than nine races have their contracts come to an end before 2020. However, since, according to Formula Money, they bring in an annual estimated total of $226.6m, surely Carey and Co would be best advised keeping them on board before seeking pastures new.

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READERS COMMENTS

 

1. Posted by 4-Wheel Drifter, 17/11/2018 0:27

"Mr. Carey is, like Mr. Eccelstone, a businessman. What Bernie did was sell the teams and manufacturers on a tightly managed circus which could make them all richer. And he delivered on his promises. I'm assuming Mr. Carey has backers to whom he is indebted. If he can get a race in Vietnam and make money they (and he) will be happy. Forgive me, but we already have races in Bahrain, Azerbaijan, Hungary, Singapore, Sochi (Sochi!) & Abu Dahbi of which no one cares in the least who wins or why. So why not Vietnam? After al we had Korea didn't we? At least China has an interesting circuit (better than Austin!) Let's see, how about Saudi Arabia --we could race around the streets of Mecca? Or Bora Bora? What I'm hoping is that Carey dumps Silverstone and Monza and Spa and Nurburg and Spain and France and some folks will start a new open wheel racing series with wide-open entry rules allowing privateers and 'factory' teams to compete on equal footing for the glory of winning on those great circuits with really cheap tickets and no television allowed. I mean a European 'Outlaw' racing series. What fun that would be! "

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2. Posted by doppelganger, 16/11/2018 19:01

"F1's circumstances are increasingly right for the teams to break away. Carey does not grasp that all these new destination cities that will make the series up to 25 want to be part of a series that includes historic and classic races. As he dumps the older traditional venues, he's removing the kudos that attracts the newer venues. So he's basically shooting himself in the foot.
Time for the teams to break away from Liberty and form a newer more Europe based series with occasional fly aways at traditional venues."

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3. Posted by DeeAnn, 15/11/2018 16:50

"@imejl99

My comment related to a similar willingness between Carey and BE to sacrifice traditional venues in order to chase dollars in Asia. Yes, you can make money, but it dilutes the sport and that is the danger. The series doesn’t need to race at Autodromo Anywhere. It needs places like Eau Rouge-Raidillon, the Parabolica, Becketts, La Peraltada, Lowe’s Hairpin, 130R, The Wall Of Champions and the Senna S."

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4. Posted by Spindoctor, 15/11/2018 14:41

"Arrogance & a measure of ignorance led Carey et al to buy a Pup.
He clearly has virtually no idea how to get out from under.
"

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5. Posted by imejl99, 15/11/2018 12:48

"And now, regarding original piece, with the best intentions:

Mr Carey, listen, it maybe looked easy, but FOM (Bernie) managed paradigm of hosting Grand Prix to be a privilege, exclusivity not affordable to many. New track announcements, ideas and deals were used to keep existing promoters in line, used as a scarecrow for losing hosting licence. And when new tracks were finally added, held (and mostly ceased), FOM made King`s ransom from it.

Your approach doesn`t signal anything else to the current hosts and promoters than that they are disposable burden to you, and own financial problem. You are lucked into the situation that FOPA (Formula One Promoters Association) was stillborn in this regard. Now it would take a lot of time and effort to re-position Grand Prix hosting as a privilege, even if you start today. Probably that ship has sailed already.

Regarding us fans, your signal to us that we are also disposable and that you will replace us with new fans, good luck with that."

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6. Posted by imejl99, 15/11/2018 11:58

"@R1Racing71

Don`t worry for BGP, with BREXIT you`ll escape being Vnuk`d like the rest of EU. Silver lining... ;)

(google Vnuk European Motor Insurance Directive )"

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7. Posted by @R1Racing71, 15/11/2018 10:30

"@imejl99 Concur with your sentiments, nicely put.

I too have been a long-time admirer of BCE, his business acumen notwithstanding, (we have him to thank/blame for our addiction to this sport) but to bribe his way out of a bribery case was pure genius, a wonderful way to stick two fingers up at the system.

Regarding the original post, I now fear that us British enthusiasts, with a particular affinity to Silverstone may have to prepare for some bad news. The BRDC don’t appear to have the nous in this digital age to make it work, while the government are unlikely to cover the shortfall – (I could argue a case why they should consider it, but that can be saved in response to a more appropriate piece)

I would however be interested to know from our more connected readers, if there have been any quiet rumblings from MSV and Donnington in particular – as it now looks like they are the only people capable of putting together the only viable and sustainable business proposal to retain the BGP. The circuit I would imagine still needs to be extended, and the DVLL proposal did actually look quite good so I would hope planning permission would be easily obtainable. So if MSV ARE actually considering bidding for the race – they would have to start very soon.

Now would be good time.
"

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8. Posted by FQITW, 15/11/2018 10:06

"@ imejl99

Liberty overpaid, and inherited a lot of problems by the way. Tracks, promoters, teams, regulations, Concorde, prize money, budget cap, sponsors, pay TV, app, FIA, attendance, engines, tyres...


We can all imagine the situation in the months running up to Liberty actually buying F1 can’t we?

Plus side : Mega profits and scope for more in the future.

Neg Side : Ok there are a few problems which might occur along the way but Hey! How difficult can it be? There’s only one old guy running things there now.
"

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9. Posted by imejl99, 15/11/2018 9:30

"@ Chris Balfe

Can't see Carey even wanting to be there this time next year.
But, IF he stays (on his own or made to) hatts off for facing the Hydra ;)
"

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10. Posted by Editor, 15/11/2018 9:02

"@ imejl99

Totally agree

Can't see Carey being there this time next year - when his contract ends."

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11. Posted by imejl99, 15/11/2018 8:33

"@DeeAnn, "Chase Carey = Bernie v2.0"

No. Far, far, far away from being v2.0. Mr Carey is in over his head. It would be actually quite interesting to monitor if it isn`t for the sport we are addicted to... I am even thinking that it is not fair to kick him when he is down, and to ease with negative comments.

Libery overpaid, and inherited a lot of problems by the way. Tracks, promoters, teams, regulations, Concorde, prize money, budget cap, sponsors, pay TV, app, FIA, attendance, engines, tyres... all kind of situations made me bit by bit change my opinion of Bernie from the Villain Puppet Master to the Force and Glue that managed to keep it all together, in spite of all involved pulling for their side. in hindsight, one has to admire Bernie`s 40 year balancing act (even if he created it himself). With all kind of contracts and agreements ending in 2019 and 2020, we will see if Mr Carey lasts for 4..."

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12. Posted by DeeAnn, 15/11/2018 5:17

"Chase Carey = Bernie v2.0"

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13. Posted by TokyoAussie, 15/11/2018 3:06

""Carey admits existing races will be replaced."

Sound like time to replace Carey."

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14. Posted by Oldgit, 15/11/2018 3:03

"I don't mind if they replace Monoco, Paul Ricard or the Hungaro ring with proper tracks where they can race.

If they replace them with street circuits and let famous circuits like Spa, Monza, Silverstone and Hockenhiem go then they can wave goodbye to any money.

The fashionable crowd/city promoters will soon tire of F1 after a few years when they have got their message across and they won't be able to go back to the historic tracks unless they take a begging bowl as they tracks will be re-purposed and will not pay a premium/financial crippling deal to get the races back.
"

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15. Posted by alfsboy, 14/11/2018 20:12

"Funny how raving capitalists always want governments to cough up .You would have thought that dealing with such types would put them into shock.A thoroughly business like outfit such as Silverstone stands no chance .Odd."

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