GP payments to Bernie

[timbo]

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.


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.

[Emmcee]

Gee what a surprise. Don eccelstone requires payment.

[Andres125sx]

Gee what a surprise. Don eccelstone requires payment.

That´s not a surprise, but if some hoster is required to pay 10 times more than some other, in that case, yes, that´s a suprise even from Ecclestone.

F1 is not a sport, but a business. But after watching this it looks more like a mafia... What are the reasons to ask for 5 millions to any or more than 50 to any other?

[Moose]

Gee what a surprise. Don eccelstone requires payment.

That´s not a surprise, but if some hoster is required to pay 10 times more than some other, in that case, yes, that´s a suprise even from Ecclestone.

F1 is not a sport, but a business. But after watching this it looks more like a mafia... What are the reasons to ask for 5 millions to any or more than 50 to any other?

Simple - one brings more value to the sport in terms of TV rights than the other. Bernie can offset the profit he expects to make from the venue against the profit he expects to make by selling TV rights.

Plus, some venues make explicit requests for certain positions in the calendar, and as a result, pay extra for that privilidge.

[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.

[Tim.Wright]

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?

Every promoter who has ever signed on the dotted line set the market price...

[mertol]

Gee what a surprise. Don eccelstone requires payment.

That´s not a surprise, but if some hoster is required to pay 10 times more than some other, in that case, yes, that´s a suprise even from Ecclestone.

F1 is not a sport, but a business. But after watching this it looks more like a mafia... What are the reasons to ask for 5 millions to any or more than 50 to any other?

Some are great tracks with lots of history while others are boring tilkedroms in slavery/totalitarian/religious fanaticism countries.

[Tim.Wright]

That's not a nice thing to say about the Austin track...

[mertol]

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

[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?

Every promoter who has ever signed on the dotted line set the market price...

Yep. But it's walking on tightrope now.

[sgth0mas]

Just about anything with an F1 car on it in america is boring. But the austin track with MotoGP on it is quite exciting.

[McMrocks]

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.
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On topic:

I never thought that Bernie appreciates the historic value of an F1 event but obviously he does. The tracks in Bahrain and Abu Dhabi surely have to make up their deficit in atmosphere and history with $$$.

[SectorOne]

Bad for fans, good for teams.

[bdr529]

Stumbled upon this on, don't have source,

Probably fell out of Bernie's pocket

I think Australia is paying far to much, and the cost of the Austin race shows how bad Bernie want's into the States

[Andres125sx]

I never thought that Bernie appreciates the historic value of an F1 event but obviously he does. The tracks in Bahrain and Abu Dhabi surely have to make up their deficit in atmosphere and history with $$$.

Yes they pay that deficit to Bernie, but what happens with us fans? If that fee increase would mean more affordable tickets or TV fees ok, but not the case, all that goes to Bernie´s pocket