GP payments to Bernie

[PlatinumZealot]

Stumbled upon this on, don't have source, so take it with a grain of salt, but I guess it must reflect the overall situation.
http://s2.postimg.org/8av7rq8jt/gp_payment_figures.jpg

It is apparent that without title sponsor or direct government donation organizers are screwed. Even in modestly paying Italy, every attendee must hand Bernie just a little shy of 80 Eur.
So the situation is that in the event of possible major sponsorship downturn more GPs than one would gone missing from the calendar. What happened with teams dropping out in 2009 might surely repeat with GPs.

What language is that?

Weird name for Germany/Deutschland and United states.

[Andres125sx]

Stumbled upon this on, don't have source, so take it with a grain of salt, but I guess it must reflect the overall situation.
http://s2.postimg.org/8av7rq8jt/gp_payment_figures.jpg

It is apparent that without title sponsor or direct government donation organizers are screwed. Even in modestly paying Italy, every attendee must hand Bernie just a little shy of 80 Eur.
So the situation is that in the event of possible major sponsorship downturn more GPs than one would gone missing from the calendar. What happened with teams dropping out in 2009 might surely repeat with GPs.

What language is that?

Weird name for Germany/Deutschland and United states.

Spanish, EEUU is the acronym of Estados Unidos, double initials if it´s plural

[Moose]

Bernie can offset the profit he expects to make from the venue against the profit he expects to make by selling TV rights.

But what entitles him to this profit and who sets his profit margin?
It's clear that the payments are way to high for organizers to hope for any profit. If sponsors and governments turn back at organizers we are facing multiple GPs dropping.

Nothing does - no one is entitled to make a profit. What does make it possible for him to generate a profit is simple supply and demand. He has a ready supply of people willing to pay stupid money to host a race, and there's a cap on demand at ~20 a year. Simple economics says that'll give him a healthy profit.

[Moose]

Austin is about average pay it only has the boring tilkedrom part and it is really boring for the drivers - just hairpins everywhere.

Sector one and three isn't that bad, is it? At least it's got elevation changes.

CotA is an awesome circuit frankly. Probably my second favorite of the year to Spa. In fact, you could argue that CotA generates better racing thanks to not being (with the exception of either end of the start finish straight) pretty much all high speed corners.

[timbo]

Bernie can offset the profit he expects to make from the venue against the profit he expects to make by selling TV rights.

But what entitles him to this profit and who sets his profit margin?
It's clear that the payments are way to high for organizers to hope for any profit. If sponsors and governments turn back at organizers we are facing multiple GPs dropping.

Nothing does - no one is entitled to make a profit. What does make it possible for him to generate a profit is simple supply and demand. He has a ready supply of people willing to pay stupid money to host a race, and there's a cap on demand at ~20 a year. Simple economics says that'll give him a healthy profit.

I think he is playing on the limit. He couldn't find a replacement for Germany this year, didn't he? And we have Turkey, India and Korea drop off (not to mention France!) and New Jersey never materialized.
OK, there's Azerbaijan and some Middle East states as well. But how this will pan out to the core F1 audience (TV and overall) -- Europe?

[dans79]

OK, there's Azerbaijan and some Middle East states as well. But how this will pan out to the core F1 audience (TV and overall) -- Europe?

It means you will have to do what the rest of us non-Europeans do, get up early, stay up late, set the dvr, or break out the passport.

[sgth0mas]

COTA has also never made money. Texas pays the sanctioning fees as well. Attendence has been in steady decline. I dont see F1 staying past the 10 year texas tax support and if F1 continues on the current path i hope it doesnt. Maybe then we will see indy or even better nascar.

[dans79]

Enough with the COTA bashing. Attendance almost always drops after something is no longer new. It's only dropped from 265K in 2012 to 237K last year (~9%).

[PlatinumZealot]

Stumbled upon this on, don't have source, so take it with a grain of salt, but I guess it must reflect the overall situation.
http://s2.postimg.org/8av7rq8jt/gp_payment_figures.jpg

It is apparent that without title sponsor or direct government donation organizers are screwed. Even in modestly paying Italy, every attendee must hand Bernie just a little shy of 80 Eur.
So the situation is that in the event of possible major sponsorship downturn more GPs than one would gone missing from the calendar. What happened with teams dropping out in 2009 might surely repeat with GPs.

What language is that?

Weird name for Germany/Deutschland and United states.

Spanish, EEUU is the acronym of Estados Unidos, double initials if it´s plural

Oh! lazy me. I always wondered why names changed from language to langues. A name is more than a name it seems.

[sgth0mas]

Enough with the COTA bashing. Attendance almost always drops after something is no longer new. It's only dropped from 265K in 2012 to 237K last year (~9%).

I love COTA and have been several times...even for concerts. Im referring to the fact that even at COTA, with government funding, the track is not profitable. F1 fees are too high, especially with a show that is less entertaining YoY.

[AliMadsen]

It is apparent that without title sponsor or direct government donation organizers are screwed. Even in modestly paying Italy, every attendee must hand Bernie just a little shy of 80 Eur.
So the situation is that in the event of possible major sponsorship downturn more GPs than one would gone missing from the calendar. What happened with teams dropping out in 2009 might surely repeat with GPs.

Russian GP 2015 might be in trouble: http://www.grandprix.com/ns/ns31442.html

Has Bernie got the audacity to call Putin? "Cough up some money now Vladimir, or njet Grand Prixski"

[Moxie]

I love COTA and have been several times...even for concerts. Im referring to the fact that even at COTA, with government funding, the track is not profitable. F1 fees are too high, especially with a show that is less entertaining YoY.

In regards to who hosts GP's and how much that costs, Bernie does not sell entertainment to venues so that they may turn around and sell tickets. He sells status to governments. These governments, often authoritarian regimes, seek to put their name on the world stage by hosting a F1 Grand Prix. The leaders of these governments don't care how much money it wastes because the little people pay for that with their taxes.

Even COTA in a democratic nation is an example of this sort of behavior. The big shots stroked each other's ego's, they kissed each other's asses, all at the expense of the taxpayer, all so Bernie could make a profit and the deal makers could think highly of themselves.

Bernie can put turds with wheels on the track and it doesnt matter what the fans think so long as they are Formula One Turds, and there are some "glamorous ladies" walking around those turds. I have to laugh because Bernie has become the Taylor in the real world version of the story "The King has no clothes."

[Hail22]

To his credit, Bernie is able to hide the physical currency being exchanged unlike poor Sepp Bladder (Blatter)...must be a tad upset that the money was fake.

[Gaz.]

I think he is playing on the limit. He couldn't find a replacement for Germany this year, didn't he? And we have Turkey, India and Korea drop off (not to mention France!) and New Jersey never materialized.
OK, there's Azerbaijan and some Middle East states as well. But how this will pan out to the core F1 audience (TV and overall) -- Europe?

This happened in 2012 when more than 50% of the calender was up for renewal, renegotiation or for whatever reasons could not commit to 2013, did they group together and collectively lower the fees? Nope, they each individually negotiated their position and we had 19 races and Bernie collected his winnings.

[PlatinumZealot]

The other countries are making that profit indirectly. The onus is on the track owners to make sure they pocket some of that money.