Toby Pennycuff

Whiskey Tango Foxtrot!!!!!

I just received this email (literally) from the Lone Star chapter of the BMWCCA......

"Attention Lone Star Chapter DE Student and Instructors

We received devastating news from the Circuit of the Americas last night. Without explanation, communication at this time is that they they are now not interested in allowing HPDE or amateur racing at the facility. We have been advised that our deposit is being refunded, our dates cancelled, and all organization events such as our have been cancelled as well. This is undoubtedly a massive loss for the Texas motorsports communuity. We are shocked and amazed at this turn of events and regret that we must deliver this disappointing news immediately prior to the Holidays.

The facebook page for the Circuit may be a source of additional information (or frustration).



Mark Williams
Lone Star Chapter Chief instructor
Lone Star Chapter President"

Very bad way to run a business. Bad Day in Black Rock it would seem.

mglobe

Yup, the same message is being pushed to all groups. I suspect in a couple of years time this will change.

Gary R.

So I assume they are booting David Murray too?

ubercooper

GuyIncognito

this blows.

and COTA is about to learn a really hard lesson in racetrack PR and fan goodwill.

himself

http://m.jalopnik.com/5970719/austin...ans-everywhere

mrbill_fl

who flagged the F1 event? scca or paid workers?

anyone in the local scca region? can't run a race without workers...

:/

multi21

You are correct, sir. As successful as the debut of F1 at Cota was this November, there is an escalating clause in the contract with Bernie's FOM that calls for a rise in "promotor fees" to bring the F1 circus to COTA. That clause is an automatic 10% per year.

Financial pundits estimate that COTA will be losing money to have the F1 race there by year 6 or 7 of the 10 year contract if they don't raise prices substantially. In the end, COTA may not be able to host all 10 dates they have contracted with F1 and the revenue source will have to come from elsewhere.

There is even talk of having a NASCAR road race there which sounds interesting, but the biggest money maker is F1. Good PR with the local regions is crucial to the long term viability of the circuit.

Some of us from Cali were going to come out to race and instruct for the CCA event just to check out the track. Oh well... it sounded too good to be true.

Toby Pennycuff

Even the France family "gets it" and allows lowly amatuers to host events at Daytona. It's just too bad that COTA management has adopted this position.

Perhaps they could visit Belgium and learn from Spa? Open days, club events, VLN, WEC, F1 and many other organizations all seem to co-exist. And I think Spa has opened things up to keep the Belgian government from closing it down completely due to financial concerns.

As I said before, Bad Day in Black Rock....

multi21

This is a small clip from the Wall Street Journal. The article is 5 pages long, but this is what I was referring to in my previous post....


The first is perhaps the most important. F1’s race contracts all contain a severe sting in their tails. This comes in the form of escalator clauses which increase the fee by as much as 10% annually. It is not known how much Circuit of the America’s fee increases annually, but if it is the full 10%? By the 10th year of its F1 contract it will be paying around $59 million. This would leave a shortfall of $34 million, even assuming that it gets the full $25 million state subsidy.

The second question is precisely how much will the state pay out in the subsidy. If Circuit of the Americas has to cover a shortfall in the hosting fee, that will soon eat into any of its profit. At least two studies analyzing the economic impact will be done after Sunday’s Grand Prix—so the organizers have precious few hours remaining to do as much as they can to attract as many spectators as possible and convince them to spend their money in Austin. The race is most certainly

Nordschleife

Do we have to remind folk that BE has frequently stated that the F1 business model precludes promoters from making money. Ergo, promoters are by definition nuts and who expects nutcases to behave predictably, or in their own best interests.

Give it two years, COTA will default on their F1 commitments, then go into Ch XI the following year and emerge as a fantastic ALMS/LMES/DE circuit for sensible money.

R+C

jcs_911

Maybe we need a "PCA Pro Racing" program to go with PCA Club Racing ..... ?

Veloce Raptor

FYI, so far, the David Murry event is still on.

multi21

Only 2 years? Hope not, but could be. Bernie has a lot of other countries that want on the calender....

I think it was Dave (VR) that once said the 2nd or 3rd owner of a track is the one thta makes the money.

Veloce Raptor

yep

This is a real, true shame. These clowns (if this is true) are statching defeat from the jaws of victory.

Hubris, and karma, is a real bitch.