Save The Date!

[Stirling_Villeneuve]

Not looking good...

http://news.bbc.co.uk/sport1/hi/formula_one/15750083.stm

[Iconic Ride]

For the moment I'd have to agree with you, Stirling. This is, naturally enough, making big news here locally. I attended the Austin "F1 Watch Party" this Sunday, trying to find out more information, but it's proving very difficult to come by. It seems to be the case that Tavo Hellmund, the fellow that spent many years and much effort to bring the venue back to the U.S., and specifically to Austin, appears to be "leaving the building" for [as yet] unspecified reasons. Tavo has been an acquaintance of Bernie since childhood, so I'm operating on the premise that Bernie is doing what he can to protect Tavo's interests.

If you want to get a feel for the complexity of this new development, the following (somewhat lengthy) article is worth a read. Bolding is mine.

FORMULA 1 UPDATE

Austin's Formula 1 crashes: If Tavo Hellmund is out, the U.S. Grand Prix might not run

By John Flood

11.14.11 | 09:30 am

Last week I wrote about the rumors concerning the US Grand Prix scheduled for Austin in November 2012. Then, last weekend, Bernie Ecclestone told the teams at the Indian Grand Prix that there were “problems in Austin. I don't think they are struggling [with building the track] at all," he explained. "I think there has been a disagreement inside the company."

The company he was referring to is Full Throttle Productions (FTP) run by Tavo Hellmund, and the problem is the relationship FTP has with the owners and investors of Circuit of the Americas (COTA), led by Red McCombs and Bobby Epstein, and managed by CEO Steve Sexton.

If the contract between Formula One Management and the organizers of the USGP in Austin is under threat of revocation, those of us who support the event may find ourselves watching NASCAR thunder around Wandering Creek. That’s not exactly what anyone had in mind.

The only leverage Tavo has in this deal is his relationship with Bernie Ecclestone and the contract they agreed to. He has no money and his importance has been questioned by those who are funding this event. COTA has been trying to buy him out, but have only offered peanuts—they do not seem to understand his value to Formula One Management (FOM) and Bernie Ecclestone.

In an effort to improve his position and increase his leverage, Hellmund asked the Texas State Comptroller’s office for an opinion regarding the event’s funding. Susan Combs is the State Comptroller and a supporter of the F1 event in Austin; she has worked to ensure the state's major events fund will support the U.S. Grand Prix (USGP) to the tune of $25 million dollars per year for ten years.

Hellmund asked Combs whether the major events funding agreement would be threatened by a change in management for the USGP. He asked whether a transfer of rights to COTA would render the funding agreement moot. Many seem to think, erroneously, that he was working through possible changes in investors as rumors suggested that a major investor had backed out. That was not the case.

The circuit managers had in fact been trying to find a way to disassociate Hellmund and Full Throttle Productions from the event. Hellmund hoped the comptroller’s office would say a change in management would void the original deal and that any new management team would need to start from square one. That’s not what happened. They agreed to support the event regardless of who the managers and owners were.

Combs sent a letter to Ecclestone regarding a change in management that said, “Should the proposed assignment be consummated, the State of Texas, through this agency, looks forward to working with the Circuit of the Americas to bring the Formula One United States Grand Prix to Texas in 2012."

With that pronouncement, Tavo lost $25 million dollars of leverage ($250 million total) and his own value to the effort was reduced to whatever amount of money COTA was willing to pay him for the rights.

I was told of these developments “off the record” a few weeks ago, but now there are enough public statements from the parties involved to confirm what I had been told. Ecclestone said this weekend at the Grand Prix in Abu Dhabi, “Austin? I wouldn’t want to put my money down that that will happen.” For those of us who over the years have gotten to know how Ecclestone thinks and deals with his business relations, this is an ominous development.

Having heard what Ecclestone said, COTA CEO Steve Sexton replied to defend the Circuit, but his statement didn’t make people feel a lot better. “There is no question that if he wants the USGP race to happen here in 2012, it certainly will. Our funding is secured and construction is on schedule, so we don’t understand Mr. Ecclestone’s comments. He has expressed great interest in the Austin race and in expanding the F1 brand into the United States.”

My, my... Sexton says it would happen if Ecclestone wants it to happen. This must also mean that it will not happen if Ecclestone doesn't want it to. This implies that Hellmund’s contract may not be transferable without Ecclestone’s approval. This is interesting stuff. It seems as if Bernie is on Tavo’s side of this argument and I understand why: they have known each other since Tavo Hellmund was a child.

I believe that Ecclestone is trying to raise the stakes and to improve Hellmund's leverage with COTA. The two have known each other for more than 30 years. As a teenager in the 1980's, Hellmund spent some time in Europe working for Ecclestone’s Brabham F1 team. Tavo’s Dad promoted the Mexican Grand Prix. They have a long history together.

Many of us found Tavo’s overt support of the recently announced Grand Prix of America on the shores of New Jersey to be a bit unusual and somewhat overstated. He released his statement from London. What was he doing in London, networking with Bernie?

Perhaps the deal between Hellmund and COTA has already been done. Hellmund’s own statements seem to support this. “It is now the responsibility of the Circuit of the Americas to make this project happen before Mr. Ecclestone’s patience runs out. I don’t plan to be a track operator. My mission has always been to put the whole deal together and get it going and then continue to broaden my horizons.” He also expressed interest in promoting events in South America and Africa. It sounds as if he is already out of the picture and moving on to other projects.

Bobby Epstein is said to have negotiated with Ecclestone for a direct contract with F1, and Ecclestone has offered one to COTA. But at this point no agreement has been reached, probably because Ecclestone upped the fees considerably. A deadline has been set and a line has been drawn. The deal must be closed before the World Motor Sports council meets in December to approve the final schedule.

There have been a number of issues that have threatened the USGP in Austin: Environmental concerns, public complaints about the State’s financial commitments, investments and funding, public roads and infrastructure; but this seems to be the most serious threat to date.

If the contract between Formula One Management and the organizers of the USGP in Austin is under threat of revocation, those of us who support the event may find ourselves watching NASCAR thunder around Wandering Creek. That’s not exactly what anyone had in mind.

Edited November 16, 2011 by Iconic Ride

[fmxa]

Time to move it back to Long Beach

[Stirling_Villeneuve]

I hate to think of the mess Bernie will leave behind him when he finally quits. The globe will be littered with F1 circuits, some hardly used, some unfinished projects, many struggling to keep afloat and retain the contract to hold the race. How long before the whole thing implodes?

[Stirling_Villeneuve]

Looking even worse now...

http://www.autosport.com/news/report.php/id/96270

[Iconic Ride]

Aarrrggggh! Sounds like the original Mexican standoff has escalated into a full blown "take it or leave it" ultimatum. I can only hope that Bernie is only angling for a bigger vigorish payout than what he originally arranged with Tavo, and that he is merely "posturing." But what I'd most like to know is what failing of the dynamic between Tavo (as the original "promoter" and contract owner) and the "circuit builder" principals caused this falling out in the first place.

The money to complete the track is there, State assistance or not. But Bernie wants some form of payment up front (understandably), and without a new contract with the builders turned "new promoters," neither the State nor the builders are willing to part with the required wonga. It's a classic "Catch 22" situation.

Someone has to blink first, and it's not likely to be Bernie.

Stay tuned.

[NedaSay]

The need to save the date is gone

[Bibs]

Has Bernie not got enough money already?

[Stirling_Villeneuve]

You would've thought so but obviously not...

http://www.autosport...rt.php/id/96270

New York here we come... perhaps.

Edited November 17, 2011 by Stirling_Villeneuve

[USAndretti42]

I read an article yesterday that suggested he did the deal with Austin only as a means of putting pressure on the lot in New Jersey where he really wants a race.

[Iconic Ride]

At this point, Trevor, I wouldn't put anything past the man, though it seems a bit odd that he would shaft his lifelong friend Tavo in the process.

Unless Tavo was "in on the deal" from the get go, which I find unlikely.

I'm still trying to stay optimistic, viewing these shenanigans as "jockeying for position" business tactics by all concerned.

[Vulcan Grey]

I read an article yesterday that suggested he did the deal with Austin only as a means of putting pressure on the lot in New Jersey where he really wants a race.

Agree with this!

He often pits one potential venue/city government against another to make the terms more favorable for him. Whether it is just hedging his bets, or to put pressure on organizers...

[Iconic Ride]

Bernie's original "sign the contract or else" Friday (Nov 25th) deadline has been extended to Wednesday, the 30th. It may be merely an acknowledgement of the Thanksgiving holiday "business day" transaction limitations, or an indication that he's not quite willing to throw away what will/would be another potentially lucrative venue to further line his coffers. It appears that the Circuit of the Americas principals have sent him their version of a signed contract, and an express promise to pay the $25 million sanctioning fee.

Stand by to stand by.

[comem47]

Bernie has to go. Nobody should have that much power. Austin was just a pawn for him.

[Quicker]

more drama than my 3yr old girl - > http://austin.ynn.com/content/top_stories/281742/ecclestone-pushes-grand-prix-deadline-back-one-week

[Stirling_Villeneuve]

Insanity.

Meanwhile Bernie rants on about how crap Europe is...

http://www.pitpass.com/45374-Ecclestone-Europe-is-finished-for-F1

[Quicker]

timeline of November events ... - > http://www.statesman.com/blogs/content/shared-gen/blogs/austin/racing/entries/2011/11/30/november_a_month_of_uncertaint.html

[Iconic Ride]

Brinkmanship

What Does Brinkmanship Mean?

A negotiating technique in which one party aggressively pursues a set of terms ostensibly to the point at which the other party in the negotiation must either agree or halt negotiations. Brinkmanship is so named because one party pushes the other to the "brink" or edge of what that party is willing to accommodate. As a sales strategy, brinkmanship is most often used with new customers and requires the salesman to identify and attack the customer's "pain points".

Ecclestoneship

What Does Ecclestoneship Mean?

A negotiating technique in which one party aggressively seizes the testicles of the other party and proceeds to squeeze them to the point at which said party begins to experience a change of heart, accompanied by a rise in vocal pitch and tearing of the eyes. As a sales strategy, Ecclestoneship is most often used with new venues and requires the salesman to continue to press firmly until "clinching" the deal, or the passing out of the customer, whichever occurs first.

[Iconic Ride]

http://circuitoftheamericas.com./

FOR IMMEDIATE RELEASE

December 7, 2011

Formula 1™ and Circuit of The Americas™ Ready to Roll

10-Year Race Contract

Brings F1™ Back to the U.S. in 2012; Construction to Resume

Immediately

AUSTIN, Texas – December 7, 2011 – Circuit of The Americas announced today they have

reached an agreement with Formula One Management that ensures the Formula 1 United

States Grand Prix remains on the FIA Formula 1 World Championship race calendar.

Red McCombs, chairman of McCombs Enterprises and founding partner of Circuit of The

Americas stated, “Mr. Ecclestone received his check today. We want to thank the fans

supporting us, the local officials and businesses that have encouraged us, the State of Texas,

Circuit of The Americas’ staff and Bernie himself. I want to thank and commend Bobby Epstein

for getting us across the finish line. Bobby’s perseverance and leadership kept the project on

track despite unfair and unfounded criticism.”

“Our investors have believed all along that this project has tremendous benefit for our region,

and provides a strong economic engine for the future,” stated Epstein, founding partner of

Circuit of The Americas. We remain committed to reaching our goal of being valuable

community partners as we establish a platform for sports and entertainment. We’re glad that

Tavo’s vision of bringing F1 to the people of Texas will become a reality.”

Engineering and construction teams working on the track will resume immediately, ensuring

completion for the 2012 race date.

“We have a substantial number of fans who have expressed interest in buying tickets and

hospitality, so today is a win for all of them as much as it is for Circuit of The Americas,” said

Steve Sexton, president of Circuit of The Americas. “We encourage everyone to visit our

website and register for information. Registered fans will receive the first communication

regarding ticket sales plans. In a matter of weeks we will have more exciting news as we unveil

our full calendar of world class events.”

Fans interested in receiving information about tickets for next year’s Formula 1 United States

Grand Prix can register their contact information at

www.circuitoftheamericas.com. Ticket sales

information will be communicated to those registered prior to general public notification.

About Circuit of The Americas

Circuit of The Americas will be a world-class destination for performance, education and

business. It will be the first purpose-built Formula 1 Grand Prix facility in the United States

designed for any and all classes of racing, from motor power to human power.

The master plan for Circuit of The Americas features a variety of permanent structures designed

for business, education, entertainment and race use. Its signature element will be a 3.4-mile

(5.5-km) circuit track. Other support buildings will include a medical facility, 14 executive

meeting suites, a conference center, and a banquet hall, as well as an expansive outdoor live

music space. Future proposed amenities include a driving/riding experience, a motorsports

driving club, kart track, grand plaza event center and tower, and a trackside recreational vehicle

park.

For more information and downloadable video, audio and photos, visit:

www.CircuitofTheAmericas.com.

Media Inquiries:

Jeff Hahn

Representing Circuit of The Americas

Office: 512-344-2017

jhahn@hahntexas.com

Ali Putnam

Circuit of The Americas

Office: 512-301-6600

ali.putnam@circuitoftheamericas.com

[Iconic Ride]

Formula Expo 2012, Austin's "warm up lap" for the Circuit of the Americas November F1 race.

And in the "vintage" category...a Type 79

In the "semi-vintage" category...

(attached to a 2004 "Final Edition")

Added attractions...