11/11/2015
NEWS STORY
The future of the US GP in Austin is in doubt as state officials reduce subsidy.
Between 2012, the first year of the event at the Circuit of the Americas, and 2014, the state contributed $25m each year as part of a quarter-billion dollar subsidy agreed over the next decade with (then) state comptroller Susan Combs.
However, for 2015 the governor's office and COTA confirmed that the state's contribution, which is based on how much economic activity the event generates for the state, would drop to around $19.5m.
"An entire facility was constructed based on that deal," COTA spokesman Dave Shaw told the Austin American-Statesman. "If the calculation is changed now, that's effectively changed the terms of the deal."
"To use a technical term, I think we're screwed," added COTA Chairman, Bobby Epstein.
While attendance figures have dropped since the inaugural race in 2012, it is understood that this isn't the reason for the decreased payment, rather than changes to the way the economic impact of the event is calculated.
This, according to Epstein, is a "breach of trust".
"The state clearly made promises," he said. "I think we made a deal, and we lived up to our end of the deal. It's like you go to a restaurant and order a dinner, and then after you've eaten the meal they change the price."
At a time Bernie Ecclestone is talking of two races in the United States, the fact is that this year's race - which suffered financially due to the weather - was already under threat due to the state's reduced payment.
Weeks before the event, race organizers were advised that the state's subsidy would be $19.5m rather than the anticipated $25m.
"It hit us cold," admits Epstein. "No one could foresee this coming."
He admitted that with the imminent arrival of the teams, and tickets for the event sold, wit was too late to cancel the race.
"But the big question now, is, 'Is the race coming back?'" he admitted.