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Government official warns no payment in Texas

No money to aid F1 bid in Austin will come from the local government
Texas controller Susan Combs has warned organisers of the United States Grand Prix that they won't be handed any advance payments from the local government and has admitted she is concerned about the situation developing at the Circuit of the Americas.

Work was halted at the venue on Tuesday following a dispute between circuit bosses and race promoter Full Throttle Productions, casting fresh doubt over a race that a number of question marks have already been placed against [See separate story HERE].

The fact that a second race on American soil is set to take place in 2013 looks like lessening the economic impact to the Austin area of hosting a race, which has also raised extra question marks about any government involvement, with Combs issuing a statement to make her position clear.

“When the United States Grand Prix was formally announced, it was the only Formula 1 race scheduled in the US,” she said. “During the past 18 months, organisers have taken many steps to bring high-profile motor racing to Central Texas, including the development of the Circuit of the Americas, and the announcement of the global MotoGP and V8 Supercar race series starting in 2013.

“The recent announcement of an annual Formula 1 race in New Jersey is a concern, as additional races have the potential to reduce the number of attendees to a Texas race, thereby decreasing the economic impact. Additionally, the reports of a slowdown in construction at the Circuit of the Americas, and recently publicised disagreements between the race rights-holder and the circuit developers have prompted speculation about whether the Austin race will even occur. The ongoing controversies are a concern and we will continue to monitor them.

“Let me state clearly: We have not paid out any money for the Formula 1 event. The only dollars that can be spent on the United States Grand Prix are tax revenues attributable to the successful running of a race. The state of Texas will not be paying any funds in advance of the event. Further, as is the case with all METF events, each application will be reviewed and analysed for its likely economic impact and only after the race occurs would any funds be disbursed.

“If an METF application is submitted, it will be thoroughly vetted and economic impact data scrutinized based on the actual circumstances for that event. Ultimately, I am responsible for protecting the interests of Texas taxpayers, first and foremost. I will not allow taxpayer dollars to be placed at risk. My position on that has not changed.”

The METF, or Major Events Trust Fund, was created in 2003 to help bring large events to the state of Texas, with past events to benefit including NFL's Superbowl.




Related Pictures

Click on relevant pic to enlarge
Work at the Circuit of the Americas
Sebastian Vettel (GER) Red Bull Racing walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Sebastian Vettel (GER) Red Bull Racing walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Sebastian Vettel (GER) Red Bull Racing walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Sebastian Vettel (GER) Red Bull Racing walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Jean-Eric Vergne (FRA) Scuderia Toro Rosso walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Circuit preparations.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Adrian Sutil (GER) Sauber walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Sergio Perez (MEX) Sahara Force India F1 walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Sergio Perez (MEX) Sahara Force India F1 walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Pastor Maldonado (VEN) Lotus F1 Team walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Nico Hulkenberg (GER) Sahara Force India F1 walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Romain Grosjean (FRA) Lotus F1 Team walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Circuit preparations.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Circuit preparations.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Circuit preparations as part of it is dug up.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Max Chilton (GBR) Marussia F1 Team walks the circuit.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.
Max Chilton (GBR) Marussia F1 Team runs the circuit with Sam Village (GBR) Marussia F1 Team.
17.07.2014. Formula 1 World Championship, Rd 10, German Grand Prix, Hockenheim, Germany, Preparation Day.

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Caroline - Unregistered

November 17, 2011 2:43 PM

@MR From the Texas Comptroller's office: "The first $25 million will go to F1 before the event. Then, it’s a reimbursement every year after that." Looks like they promised the money upfront to me.



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