The current contract with Melbourne to host the Formula One Grand Prix expires in 2015. A statement from Melbourne’s Lord Mayor, Robert Doyle, published on the weekend speculates it is highly unlikely the Victorian Government will bid for the rights to host the race beyond the current deal.
Writing for the Sunday Herald Sun Doyle said, “Fast forward to 2015, the year the franchise ends. Though the documented benefits for the city may include hundreds of millions of dollars of advertising value, tens of millions of dollars of local revenue, an event that will draw between 250,000 and 300,000 people over three days will come at a cost that will approach 70 million taxpayer dollars.
“It is the old argument: pay up front but get many times the value of the upfront payment in downstream economic benefits.
“For most events that formula is persuasive. But $70 million?”
Doyle concludes with an even more frank assessment, “My judgment would be: Get ready. Time’s up.”
Ultimately the decision to seek an extension to the current deal rests with the new Victorian Premier Ted Baillieu and his government. Controversy and Albert Park have gone hand in hand for most of race’s history in the Victorian capital. Would it be a prudent political move for Baillieu to announce his political leadership with a strong statement by snubbing F1?
So, if Melbourne lost the Grand Prix and it went elsewhere in Australia, would that be okay? What if the race was shipped off overseas for good? Let us know what you think.
[Source: Sunday Herald Sun]