COTA Austin - construction and infrastructure

[Richard]

Bernie up to his usual tricks ....

http://news.bbc.co.uk/sport1/hi/formula ... 711813.stm

"Austin? I wouldn't want to put my money down that that will happen. I hope it will and we are doing our best to make it happen, but I wouldn't want to say 'yes'."

[strad]

All of the permits have now been issued.

[xpensive]

When MrE speaks like that, it usually means that he has made up his mind?

[bhall]

Considering the addition of races in Russia (2014) and New Jersey (2013), I wonder if Ecclestone's statements are just a thinly-veiled attempt to rattle investor confidence in the USGP in Austin so that he can get out of that contract by effectively inducing their withdrawal rather than terminating it himself. I have no idea what's included in the terms of the contract, but I feel pretty safe in assuming that it likely contains provisions for some sort of penalty to be levied against whichever party breaks the deal.

While all of this is purely speculation on my part, I wonder if Ecclestone finds this necessary because the teams simply will not agree to a 22-race season, which is how many there would be in 2014 if everything remains as it currently stands.

Perhaps Austin became expendable the very moment the ink dried on the NJ contract.

(Of course, I might be wrong.)

[strad]

Considering the addition of races in Russia (2014) and New Jersey (2013), I wonder if Ecclestone's statements are just a thinly-veiled attempt to rattle investor confidence in the USGP in Austin so that he can get out of that contract by effectively inducing their withdrawal rather than terminating it himself. I have no idea what's included in the terms of the contract, but I feel pretty safe in assuming that it likely contains provisions for some sort of penalty to be levied against whichever party breaks the deal.

While all of this is purely speculation on my part, I wonder if Ecclestone finds this necessary because the teams simply will not agree to a 22-race season, which is how many there would be in 2014 if everything remains as it currently stands.

Perhaps Austin became expendable the very moment the ink dried on the NJ contract.

(Of course, I might be wrong.)

I don't think so...I think you have it figured

[Richard]

For all we know he may be raising doubts about Austin in order to pressurise local authorities to give more support, or perhaps to show New Jersey "Look I'm prepared to walk away from a track that is already under construction, so don't assume the NJ deal is in the bag".

Or perhaps he's giving out a message that money is really tight these days so he couldn't possible spare a dime to give more cash to the teams

Or perhaps he's toying with the dropping Austin in favour of NJ as bhallg2k suggested.

Or perhaps he's opening the doubt in the teams minds that they might not get a USA track, and that'll scare the sponsors and commercial people, so the teams will have to agree to his bigger calendar if they want to hang on to the US tracks.

Or perhaps he wants to distract himself and others from the corruption trial.

Or perhaps he couldn't think of anything else to say. I seriously think that Bernie just likes scaring people once in a while when he's bored to see how they'll react. An occasional reminder to the F1 world that he pulls the strings.

He's sabre rattling, just like he does about virtually every track, often for very little reason other than the fact that he like the sound of rattling sabres. Spa and Suzuka seem to get away with it lightly this year, maybe he feels he needs to make up for that?

[bill shoe]

From Adam cooper--

1. State of Texas offical issues press release, says state subsidy for race won't occur until after race (if at all).
http://adamcooperf1.com/2011/11/15/aust ... us-threat/

2. Circuit owner issues press release, says work stopped on circuit.
http://adamcooperf1.com/2011/11/15/work ... n-balance/

It's an interesting negotiation situation for the Austin Grand Prix parties because:
1. They didn't figure this stuff out in advance.
2. Tavo Helmund brings no value to the table other than a contract with Bernie. Why didn't the track get the contract and pay Tavo a finder's fee or something?
3. The track (Circuit of the Americas) already spent a lot of money so their NBATNA (next best alternative to negotiated agreement) sucks. If they walk away they lose the sunk costs. Logically, Tavo can screw them and demand a payment ("promoter profit") equal to the sunk costs so far.

That said, press releases are cheap and it's possible everything will be back on track next week.

Edit-- Here's a good quality article explaining the situation. It's consistent with my three points above.
http://www.autoweek.com/article/20111114/FREE/311149999

[bhall]

Oh, I'm convinced the USGP in Texas will not happen. Such an outcome is consistent with the fact that the cosmic powers-that-be seem to have a soft spot for giving me the finger.

The NJ race was announced barely a month after I moved out of NJ. It's only logical that the TX race would be called off now that I found out I'm moving to Houston at the end of this month.

As far as I'm concerned, it's all par for the course.

[bill shoe]

I know how you feel.

The last time I saw F1 cars live in action was at the Indy Grand Prix that featured all the Michelin cars pulling off the track before the start.

[xpensive]

My kinda woman that Susan Combs. I wish we had a few people like her in the government where I come from,
as it is, those 25 MUSD would have long since been spent and gone to a wannabee-profiteer like Hellmund,
who don't even seem to know what forms to fill in or what contracts to sign.

Just an old friend of MrE's?

[FW17]

How come Circuit Of The Americas did not have a binding contract with Full Throttle Productions


Pity if this is not sorted out.

[Richard]

How come Circuit Of The Americas did not have a binding contract with Full Throttle Productions

Of course if you or I were wanting to undertake a project like this then we'd have collateral warranties and back to back contracts.

Mr E does not follow normal due diligence for a good reason. He allows these confusing arrangements to give him leverage so he can play one person off against another. Also any attempt to renegotiate would inevitably need to be lubricated by more cash.

Mr E has them over a barrel now that they've sunk money into the circuit, he's trying to see how much he can wring out of them, just like he did with Silverstone.

[bhall]

It should be noted that a disproportionately large number of politicians in Texas are breathtakingly full of **it, even by normal American standards. Sometimes you have to just sort of stand in awe of the things they do. Their governor, Rick Perry, is running for president with a campaign that proudly proclaims his stupidity on almost every issue. They think it makes him more accessible to everyday citizens. (This tactic was introduced by Ronald Reagan and perfected by George W. Bush, and both produced staggering results. World, start getting ready.)

They're also a prideful bunch, those Texans. The comptroller (also known as an accountant), Susan Combs, claims that money from Texas' Major Events Trust Fund cannot be disbursed until after an event takes place.

Well, that glorified CPA is lying. I took the following from her very own website:

"An event, which must not be held more than once per year, expected to generate at least $15 million in local and state tax receipts is eligible for prior funding to attract and secure the event. If the event recurs, the previous year’s receipts can be used to attract and secure subsequent events."

Frankly, Texas is like a toddler who doesn't play well with others because he never quite learned to share his toys. I think they feel cheated by the NJ race, as it has robbed them of their status as the only game in town. So now they're sulking because someone had the audacity to "mess with Texas." (According to many t-shirts, hats, coffee mugs and bumper stickers found all over the state, that is something one should never, ever do.)

I think Mrs. Combs is tending to their collective wounded pride by starting a good ol' fashioned pissing contest. It's the Texas way.

[dren]

Hence the term "everything is bigger in Texas!"

I fully expect the race to take place. Just politics as usual.

[xpensive]

...
Frankly, Texas is like a toddler who doesn't play well with others because he never quite learned to share his toys.
...
I think Mrs. Combs is tending to their collective wounded pride by starting a good ol' fashioned pissing contest. It's the Texas way.

Ouch..Don's gonna get you for that one...!