Canadian Grand Prix on the Rocks: Ecclestone to Blame

It was announced yesterday in Montreal that under Bernie Ecclestone’s financial terms, the Canadian Grand Prix is not viable. Negotiations have ended with no solution and once again the grand prix is hanging by a very thin thread.

“Despite our endeavours and those of the business community, the unreasonable demands of Formula One exceeded the taxpayer’s ability to pay,” Mayor of Montreal Gerald Tremblay said in a statement. “I would like to thank my colleagues from the federal and provincial governments and members of the business community who joined forces in an attempt to save the Grand Prix. Their concerted efforts attest to Montr Deal’s vitality and could prove an opportunity for creating a development fund for new events of all kinds that would stimulate the economy, tourism and employment.”

There is no question that the world is in financial crisis and as the recent G20 meetings concluded the consensus was that serious change must take place and that countries must be more financially responsible. Canada and other countries cannot simply throw huge amounts of money toward Bernie Ecclestone who appears oblivious to the crisis.

“Whenever the Grand Prix of Canada needed help from the Government of Qu Debec, we were there,” Raymond Bachand said. “We worked very hard over the past few weeks to ensure there would be a Grand Prix in Montr Deal, while staying fiscally responsible. We cannot meet Mr. Ecclestone’s unworkable demands. Unless he eases his requirements and adopts a different approach, there will be no Grand Prix in Montr Deal in 2009.”

Among the demands from Ecclestone was the 175 million dollars over 5 years. With the global economy on a down turn, no private promoter would risk taking on this demand and I have a hard time arguing with that.

A non profit organization was considered rather than a private promoter, one that would be funded by the government and the tourist industry. A 1% GP tax on hotel rooms in the area was considered and agreed upon that would raise another 5 million. This was to be supplemented by 2.5 million from the Quebec Provincial government as well as the federal government for a total of 10 million per year. This and any other attempt fell short when Ecclestone refused to budge on his demands for 3 times this amount as well as the length of the contract.

In this tough economic time F1 simply cannot continue with it’s unrealistic demands if it wants to not only survive, but to thrive. The recent G20 meetings confirmed that countries must tighten their wallets and be more fiscally responsible. Bernie Ecclestone is no longer in the drivers seat and it is about time he realizes this.