Tax payer funded F1 GP for Melbourne
February 26, 2009 by Matt Brogan
It is expected that next month’s F1 Grand Prix in Melbourne will be a tax payer funded event to the tune of some $50 million due to the loss of major corporate sponsors.
The hefty bill comes as no surprise to Victorians who have footed consistent losses of up to $40 million for the race over the past three years.
Victoria’s Labor Government, under Premier John Brumby, has been heavily criticised for wanting to keep the race in spite of its rising costs with most sponsors of the event cutting their spending by up to one-third.
This cost-cutting could force the state government to underwrite the event in a move that will push the State budget in to the red for the first time in 15 years.
The Australian Grand Prix Corporation said its overall sponsorship revenue would not be affected, with many corporate supporters on long-term contracts, but its corporate hospitality tickets would be hit hard with BMW, Foster’s and ING all tightening their belts.
This year’s Melbourne F1 Grand Prix will be a twilight event for the first time, kicking off at 5pm in a bid to capitalise on international television audiences. Race day is Sunday March 29th.
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Taxpayers have to lose $50 million for this event? Would $50,000,000 be better spent on schools and hospitals? I think so.
By the way, ING has confirmed that this is the last time it is sponsoring this event, as ING lost 3 billion Euro for the quarter ended 31/12/08 and sacked its CEO last month.
Just over charge to run ads on TV during the event. How bid is the TV audience?
sux to be a Vic taxpayer!
The event should be self-funding! The event is for profit and the money goes to Max Mosley. What a joke.
Can in…who needs F1?!
Funny how so many events run at huge losses and there seems to be no prob for tax payers to pay for it .But soon as we need just 500 thou to make huge dif to schools or hospital that need a hand out thay say sorry no money go figure
If Bernie Ecclestone and Max Mosley were thrown out, things would be a lot cheaper.
Not a problem folks, Vic will simply install a few more cameras. $50 mil is a drop in the ocean when fleecing taxpayers is the game.
It’s a shame the rest of Victoria’s roads aren’t in as good condition as the Grand Prix track, maybe the $50 mil could be better spent elsewhere?
I love motor sport, but it should never be a one-sided impost on the Taxpayer. When Governments think they should be propping the fortunes of shysters like Ecclestone, it’s time that they’re thrown out of power.
Its great for the fat cats (( govenment))
They don’t lose any money, just give it to the tax payer,
As much as i like motor sport as well, leave it down there!!
Where are the figures totalling the amount of money spent by tourists and the circus itself on services in Melbourne and Victoria during the F1 race weeks?
I know a heap of people that travel to Vic for the race each year, they spend at least $150/night on accomodation, add in meals and transport (hire cars, etc.) and you have a lot of money flowing in just from Australian tourists. Add in the team accomodation costs, catering for the teams, hiring personnel (pit chicks), etc. A lot of money is pumped in to the Victorian economy in a short space fo time which provides a massive boost.
What is the cost of an international tourism campaign?
I reckon $50 million for all this is pretty damn cheap.
Then again, I do come from the state that threw away Rally Australia and Heineken Golf Classic at a measly cost of $1.5 million per year.
Even tho the race itself is operating at a loss I still think the race would have an economic benefit to Victoria. It sure is the only thing that gets me to the state.
I LOVE motorsport but F1 has lost its relavance. It used to be about introducing new technology (yes i know about KERS) but that made it boring so they took away a lot of stuff.Now i dont think they know which way to go, back to basics by the looks of things.
Eccelstone and co have lost the plot IMO. Maybe they should just let the ozF1GP die, at least until they figure out a way to make it profitable.
So the F1 is going to push Victoria into the red…isn’t Victoria suffering enough with all these job losses with out the tax payer having the foot the bill as well.
This Brumby Government sux!
The sooner we get rid of this boorish event the better
Yep the GP is great for tourism…… in SA and Qld. Both SA and Qld experience significant spikes in Vics visiting during the Grand Prix.
I have a number of friends who get out of Melbourne the week of the Grand Prix, they can’t stand it
Captain – totally agree with you there. Ecclestone’s been to greedy to the sport. Now with Honda possibly not on the start line this year and RBS (Royal Bank of Scotland) pulling their support. The F1 parade really needs some serious cost cutting to save the sport otherwise it will collapse completely. I think if saving were made it would be more competative anyway.
Cupid, is that the start of the fallout from RBS’s 24 Billion pound (AU$53 Bill) loss last year?
Yes Alan – if interested read the Timesonline, it’s all over the press today. Cheers
I agree with Falcodore, F1 lost it’s way! It was all about the latest technology and because only the top teams can afford this technology it makes the racing unfair, they change the rules (every year). Now they have a very stirile race.
The cost to the Vics is loss of sponser.
Supercujo, you on the money about it bringing in cash for Victoria’s economy.
The only person making the real money here is Bernie Ecclestone.