Complaint filed against the 25 million dollars in Austin
The United States has never been a big fan of F1 and is known for its strong legal tradition. These two elements create an explosive mix as three citizens of Austin have decided to file a lawsuit against the 25 million dollars of public funds paid to Bernie Ecclestone's FOM.
The peculiarity of this complaint is that it is not against the city as a legal entity but rather against the individual Susan Combs, the chief financial officer of the state of Texas. The plaintiffs accuse her of having authorized the payment before she had the legal authorization to do so.
For the record, these fees paid to Bernie Ecclestone to host the F1 event come from the Major Event Trust Fund, which is specifically intended to finance the hosting of major events. The payment is made in advance to relieve the organization’s cash flow. The state then recovers its investment through the additional taxes generated, meaning that the event does not cost a cent to the Texas taxpayer.
This complaint is only the realization of the debate opposing pro and anti-F1 since one of the three complainants is a professor who was laid off following budget cuts decided by the State to alleviate its deficit and debt. The whole issue is that these taxpayers only consider the money spent and not the economic benefits, both from the construction of the circuit and the race itself.
At present, we cannot determine what impact this complaint will have on the holding of the event, but it’s a safe bet that a solution will be found, especially since the complaint is personal and not against the State.
With the participation of RacingBusiness.fr
