Australia is negotiating to extend with F1
The contract for the Australian Grand Prix in Formula 1 will soon come to an end, but the race promoters will begin negotiations with Bernie Ecclestone to extend the race on the calendar. However, the negotiations are expected to be complex as political leaders do not want the race at any cost.
The contract for the Australian Formula 1 Grand Prix will expire after the 2015 Grand Prix, but Australian politicians want the race to continue. The government of the State of Victoria – where Melbourne is located – has thus given the green light to the race promoters to negotiate with Bernie Ecclestone.
« I asked the head of Grand Prix Corporation, Mr. Walker, to start preliminary discussions with Mr. Ecclestone about our future contract, » said Louise Asher, the Minister of Tourism for the State of Victoria, as quoted by Pitpass.
In recent months, Australia has been in the dark about its future, particularly due to huge losses, and the goal is not to continue down this path. Political leaders do not want to fund an event that will lose too much money: « The management of any government activity on this point will be that we will only sign a new contract if it represents good monetary value. The government no longer wants to sign something if it does not represent a good investment for taxpayers. »
According to Pitpass, the current contract stipulates a payment of around 20 million euros for 2013, with a 5% increase per year, amounting to 22 million euros for the 2015 race. However, in case of a loss, the event could cost taxpayers much more, almost double according to the British media.
Moreover, with competition from new or future entrants, such as Abu Dhabi, Singapore, Bangkok, or New Delhi, Australia will have a lot to do to keep its Grand Prix on the Formula 1 World Championship calendar.
