Raceline Radio Network Newsletter - October 30, 2008

From Erik Tomas, Raceline Radio

The latest on The Canadian Grand Prix Montreal/Formula One debacle shows a rather refreshing change, in that government heads are willing to help save the race, but at the same time aren’t just going to spend our tax dollars like they’re printing it in the basement.

Quebec Minister of Economic Development Ray Bachand, Micheal Fortier, the Federal Minister of International Trade, and Montreal Mayor Gerald Trembley flew to London for a 2 hour meeting with F-1 dictator Bernie Ecclestone last week. Mayor G. told us the meeting was productive, as they now know how much it’s going to cost to get the race back.

Trembley says there is hope the race can be saved, but no offer was made to Ecclestone at this point.

But here’s the difference: The Governments are willing to “help” pay the bill!

Unlike other F-1 cities and countries, they are not willing to simply whip out the cheque book and pick up the entire tab. Minister Bachand says they need to have partners. If Montreal hotels, restaurants and shopping centers are interested in the profit the race brings them, they will need to open their wallets and help pay for it!

Former promoters deny they owe Ecclestone back sanctioning fees, and the current contract impasse that prompted the removal of Canada from the schedule, deals with this year’s Grand Prix only.

So now the governments and the city have to decide if paying Bernie the 50 million he needs for his races now, is worth the investment against the 75-100 million the race brings to the Montreal and Quebec economy.

Can they afford it in the long run? Can they compete against Middle and Far East nations who can pay Ecclestone’s wildly inflated price tags with petty cash?

That’s the multi-million dollar question.

While I would hate to lose this race, I fear if they pay Bernie now to get it back, are we not on a very slippery slope? How much will Mr. E want next time?

And just say for the sake of argument, they pay the man. To recover costs, what does dumb-old race fan then pay for his tickets? Montreal hoteliers double the price for a hotel room during race weekend now. If the sanctioning fee goes from 20 to 50 million, and the Montreal Hotel Association, not to mention the restaurants are on the hook for a portion of the bill, what happens to the price of hotel rooms and restaurant meals?

Want to take a guess? The friction could cause your credit card to burst into flames!

In the end, if Montreal gets The Formula One Canadian Grand Prix back, and even if they don’t… either way….. the forgotten fan is going to pay through the nose.

I just wonder if we can afford Formula One in Canada anymore?

And I really have a problem contributing to Ecclestone’s wealth by paying his price to bring a series to Canada that ranks “maybe” a 5 out of 10 when it comes to actual on-track competition with absolutely ZERO fan-driver interaction.

Is it just me, or does this sound like a lousy deal?

Until next time…

ET