New controversy over public funding in Austin
Since its addition to the F1 calendar, the Circuit of the Americas has always been at the center of controversy regarding the public subsidy granted by the state of Texas. The controversy is being reignited as upcoming political elections approach.
The history of F1 and the United States has never been simple, and Austin is no exception. The main point of contention is the $250 million public subsidy intended to cover the fees to be paid to the FOM.
Thus, in 2011, the Texas Senate refused the payment of the first installment of $25 million, until the situation was regularized a year later when the inaugural event could take place. These payments are part of the Major Events Trust Fund, which aims to attract major events to the state to promote it.
From now on, the debate focuses on the technical aspect of the funding request submitted by the Austin circuit. Indeed, the local newspaper, San Antonio Express News, published information suggesting that the necessary documents to obtain such a grant may not have been submitted, which would call into question the very principle of the grant.
Thus, Jerry Patterson, the head of properties owned by Texas, stated: « The process was sabotaged from the start. It was clear then, and it’s even clearer now that the statutes were not respected. » He therefore wanted to make it known that he was neither in favor nor opposed to F1, but he criticized that the established regulations were not respected.
The defense of the circuit’s leaders is based on the fact that the official request was not made in writing but that Bernie Ecclestone’s word was sufficient. Bobby Epstein, the president of the circuit, responded in an interview with the local TV channel Kxan-TV: « Domino’s Pizza doesn’t deliver a pizza to your home if you haven’t called them to express your interest in having one. A Grand Prix doesn’t just happen like that either. »
He thus stated that the fund’s statutes did not specify whether the request had to be made in writing or orally. He therefore believes that his organization has no reason to worry about the legitimacy of its request.
Such a response obviously did not appease the opponents of the project, as demonstrated by the statement from Tom Smith, the director of the local NGO Public Citizen: « An applicant for food stamps or social security must submit a signed application and provide a whole bunch of evidence to be eligible. Yet, an opportunist can come along and say, “Oh we have an oral request, we should receive a quarter of a billion dollars”? This is not credible. »
This issue is resurfacing now as local elections loom. However, the San Antonio Express News is quick to point out that billionaire BJ McCombs, a stakeholder in the circuit, is a major contributor to the campaigns of State Comptroller Susan Combs, Governor Rick Perry, and Texas Attorney General Greg Abbott. According to published campaign accounts, he allegedly donated $669,054 between 2000 and March 2014 to the various campaigns of these three figures involved in payments made to the Circuit of the Americas.
This should not jeopardize the holding of the third edition of the Grand Prix on November 2nd.
With the participation of www.Racingbusiness.fr
