What future for the Australian Grand Prix?
For several years, no other Formula One Grand Prix has sparked as much debate as the Australian Grand Prix, held at Melbourne's Albert Park.
Each time I come here, we witness this debate, all this discussion against the Grand Prix, and we don’t see that anywhere else, notes David Coulthard in the columns of the Herald Sun.
Indeed, although it recorded its best attendance since 2005 with 305,000 spectators in 2010, the Australian Grand Prix is far from reaching the 400,000 spectators of 1996 or the 360,000 people who attended the 2005 race. As a result, the Australian Grand Prix posted a record deficit of 49 million dollars last September, 10 million more than in 2008 and 2009, and nearly double the losses recorded in 2006.
For Craig Ingram, Member of Parliament for the state of Victoria, these losses are outrageous and the organization of the Grand Prix is turning into a joke: We struggle to subsidize health services, education, roads, and other infrastructure, and we bail out a billionaire’s race: I think we need to review our priorities.
Tim Holding, one of the state ministers, on the other hand, invites people to take a step back: [The Grand Prix] was watched by nearly 12.8 million people in Europe this year, and the massive media exposure has helped us build a global reputation.
If Formula One indeed serves as an excellent showcase for the city of Melbourne and the state of Victoria, its organization nonetheless presents two major problems.
First of all, the Grand Prix is held on a temporary circuit that needs to be assembled and disassembled every year, which inevitably costs more than if it were held on a permanent circuit. This is why alternative solutions have been considered, either on the Calder Park circuit, near Melbourne, which has an agreement with the Australian Motor Sport Federation and the state of Victoria, or on a new track constructed near Avalon Airport, in Melbourne. However, for Ron Walker, the promoter of the Grand Prix, only Albert Park truly showcases the city of Melbourne.
But the Australian Grand Prix is also a victim of its geographical location and time difference. While for many fans, a Formula One Grand Prix at 4 a.m. has a special atmosphere and an exclusive feel, for Bernie Ecclestone, it represents a considerable loss of revenue. Thus, the chief financial officer of Formula One seized the opportunity by negotiating a contract extension for the Grand Prix on the condition of postponing the start to 5 p.m., allowing for a more decent broadcast time in Europe. However, the 2010 edition ended at nightfall when the Albert Park circuit is not equipped with lighting, adding a new dimension to the debate about the future of the Grand Prix. For Bernie Ecclestone, Melbourne must host a night race, but for local authorities, it would only increase organizational costs.
« The problem with Albert Park is that it is a 300-hectare park, and a night race requires lighting not only the track but also the rest of the park to ensure maximum safety. Too expensive. But the cost of building a circuit for this purpose […] is equally untenable. » said Melbourne’s mayor, Robert Doyle, last January, who already has to deal with the claims « of environmentalists » defending Albert Park.
For Doyle, the solution would be to keep the Grand Prix where it is, but this would require Ecclestone to admit that the Australian Grand Prix will never be held at night […].
Bringing the Grand Prix to Melbourne […] should be remembered as a stroke of genius. The state of Victoria had been the fifth wheel for years. The city was in the doldrums » acknowledges Robert Doyle, who nonetheless harbors no illusions about the future of the Grand Prix.
« I know that no city has ever voluntarily rejected a Grand Prix, but could Melbourne be the first? […] We can always say that it has been 20 fantastic years, the benefits for the city and the state have been enormous, but the cycle is coming to an end. »
If for Bernie Ecclestone, Formula One does not need Australia, he does not, however, intend to take the first step towards a contract break.
« Australia is as important to us as Monaco » states the Briton to Reuters. « We would hate to think that we might lose Australia. […] In the case of Melbourne, if the product is too expensive for them, we understand and when the contract comes to an end, […] we will not force anyone to buy a product they don’t want […] »
Nevertheless, Bernie Ecclestone, who had planned to come to Melbourne this weekend to discuss the future of the Grand Prix, chose to change his destination at the last minute by going to New York, where negotiations are suspected to be taking place for the Big Apple’s potential addition to the F1 calendar. This might postpone the debate on the future of the Australian Grand Prix to the next season, which could once again record significant losses this year despite the Mark Webber effect.
