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teabagyokel said:
Does that whole thing mean that Tavo Hellmund has a right to hire a circuit and force F1 to race on it, interestingly? Could we be seeing Indianapolis or Road America or somewhere?
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As I understand it, there is a contract between Bernie and Tavo for Tavo to organise the race. Quite how specific as to where the race is, I don't know.

Then there is McCombs' company that has bought the land and paid for the building work. The crucial question is what contract exists between McCombs and Tavo.

It would seem bizzarre in the extreme that we got this far without any such contract, but the way everyone is behaving suggests that we might have done?

I wondered if Tavo could take his contract to New Jersey but it seems that Bernie has done a deal with Leo Hindery and co. If they have done their job a bit better than the other lot, they may have clauses preventing a competing race any closer than Austin for example.

Tavo may not be able to move it also because of the safety checks and the unwritten rule that Tilke has to be involved may also scupper him. Tilke are a big loser in this as they have now got to try and recover their costs from McCoombs for the unfinished circuit.

KekeTheKing said:
Apparently the circuit owners hadn't a clue who they were dealing with here. Now that Bernie's got his race on the East Coast I don't think he really cares about Austin. And quite frankly, neither do I.

Epstein and Co. obviously didn't know the rules of the game when they got into this and now they're going to be left holding the bag. Rather embarrassing and short sighted.
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Sounds like you think it's dead? Maybe it is... it's hard to see Tavo and McCombs make up, it's hard to see Bernie now working directly with McCoombs, even if Tavo were to sell the rights, even if Bernie were to allow him to do so... Stopping the work was the nuclear option, with mutually assured destruction?
 
Texas Officials are ensuring that this race never takes place. Susan Combs announcement that they will not be dipping into the "Special Events Fund" is tantamount to saying "The race is off."​
​
The project had the support of state lawmakers, who voted in 2009 to make the race eligible for $25 million from a special events fund. The project also had strong backing from Combs.​
​
​
Correspondence between Combs, Ecclestone and Hellmund obtained by the Austin American-Statesman showed the original plan was to pay Formula One a year in advance to cover the cost of the international sanctioning fee.​
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​
​
She's obviously changed her tune.​
“We have not paid out any money for the Formula One event,” Combs said. “Ultimately, I am responsible for protecting the interests of Texas taxpayers, first and foremost. I will not allow taxpayer dollars to be placed at risk.”
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http://www.autosport.com/news/report.php/id/96246

very, very odd...

Full Throttle Productions said: "After years of effort in getting F1 to Austin, Full Throttle Productions and city, county and state officials have done all we could. It is the responsibility of Circuit of the Americas to bring it across the finish line. For the sake of everyone, we are hopeful that they can reach an agreement with Formula 1."
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:dunno:
 
More news here.Its worthwhile to read the entire article.
http://austin.culturemap.com/newsde...tion-as-the-state-of-texas-withdraws-support/.
Again according to the statement: “Let me state clearly: We have not paid out any money for the Formula 1 event. The only dollars that can be spent on the United States Grand Prix are tax revenues attributable to the successful running of a race. The state of Texas will not be paying any funds in advance of the event. Further, as is the case with all METF events, each application will be reviewed and analyzed for its likely economic impact and only after the race occurs would any funds be disbursed.”
That means no money will be committed before the race happens. This is a complete change from what had been discussed by the COTA and the State Comptroller’s office just five months ago.
Combs has been a vocal proponent of Austin’s Formula 1 deal and was one of the first to support it publicly. Her commitment to the race came in the form of a promise to pay $25 million dollars per year for 10 years out of the state’s Major Events Trust Fund (METF). The money was to be used to help pay the Formula 1 license fee and could be paid as early as one year before the race was held.
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One of our members flood1 writes for this magazine and has very close inside contacts with most of the parties involved.Last night he talked to Susan Coombs and an update will appear later today.

The land is actually owned by Prophet Capital.McCoombs is just an investor.
The argument is between Bobby Epstein of Prophet Capital and Tavo Hellmund
 
Sounds as though some of the Texan investors weren't aware that spitting on your hand before shaking on a deal doesn't form a legally binding contract... clash of business cultures between the Lone Star state and Bernie's cronies?
 
So the contract with Tavo had been cancelled because he was in breach. Looks like the circuit owners got 100% of nothing...
 
I don't think Susan and her underlings in the Comptroller's office have any idea that governments around the world routinely line up for the "honor" to shell out mega-millions to Bernie/CVC. But maybe they really and truly want out of the deal, in which case they are succeeding marvelously.

If the land/circuit owners don't pony up the 25 Mil themselves here then they'll be left with the biggest MotoX track in the world. Should see some good return on that investment. :rolleyes:
 
I'm so dissapointed about all of this. The track looked good and I was really excited that F1 was about to get a home in America.

As much as I'd like to say stuff it theres a new street circuit in New Jersey happening my heart tells me like all the other U.S circuits it won't last more than a few years
 
RasputinLives said:
I'm so dissapointed about all of this. The track looked good and I was really excited that F1 was about to get a home in America.

As much as I'd like to say stuff it theres a new street circuit in New Jersey happening my heart tells me like all the other U.S circuits it won't last more than a few years
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..Well, you have to ask the question about whether the New Jersey race will go ahead either! I actually believe that the Austin race would actually have added value for the New Jersey race (And vice versa), due to familiarity of F1 in the USA....
 
HammydiRestarules said:
Well shut my mouth, for once a GP track might not actually make it to the calendar. Shame as the new Austin layout looked ace and the pit straight looked awesome from the dirty track DC was going up. Really hope they've not wasted to much on this developement as if they don't make it on time i don't reckon they'll get another slot in the 2013 calendar with the New Jersey race already planned.
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I wonder exactly how much of the money BBC got paid by Sky was spent on DC's trip to make his film of a car not designed to travel on that surface drive on that surface. Great telly (not).
Not many winners in this news, none of them are me and I bet none of them are you.
 
Hell's bells, she lays the blame squarely with Epstein.

Combs: I don’t know because it’s up to the investors.
AAS: Right. I figured you were keeping up with them.
Combs: I have no idea what they’re doing. ...
...
Combs: It’s really not a Tavo problem. It’s really an investor problem.
AAS: When you say investor, whom do you mean?
Combs: That’s really, I think, Mr. (Bobby) Epstein. I think Mr. Epstein is the lead investor. I don’t think it’s Red. I think it’s Mr. Epstein. You might want to chat with him.
...
Combs: ...I haven’t talked to those guys. I don’t know what they’re doing.
AAS: Are we talking weeks or months?
Combs: Months. Mr. Epstein, I haven’t seen Mr. Epstein, I can’t think when.
...
Combs: ... There’s no lesson for the state. I think the lessons are for the investors.
AAS: And that would be?
Combs: Mr. Epstein and the guys. I don’t know what’s going on behind that door. I have no idea.
 
Brogan said:
Interview with Susan Combs, the Texas state Comptroller (what the hell is a Comptroller?).
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I just think of this guy:
f-one.webp
 
http://espn.go.com/racing/f1/story/...ign-contract-save-race-bernie-ecclestone-says
LONDON -- The 2012 U.S. Grand Prix will be canceled unless organizers in Texas sign a contract with Formula One boss Bernie Ecclestone by the end of next week and prove they have the money to put on the race.
Ecclestone wants the dispute with Circuit of the Americas officials in Austin settled before the season-ending Brazilian Grand Prix on Nov. 27.
"It's all very simple -- they don't have the money," Ecclestone told The Associated Press on Thursday. "We don't have a contract. If they want to come back to us, if it's not signed before the end of next week, I suppose it won't be on the calendar next year."
Ecclestone wants a letter of credit or a guarantee that he will be paid.
"We have been working on this now for quite a few months and years, so we can't do any more," he said. "We have a World Motor Sport Council meeting on the 7th of December and we need to prepare everything before that."
In response, Circuit of the Americas indicated it was looking at staging the race in 2013.
"We have been excited for and working towards a 2012 USGP race and now understand that Mr. Ecclestone is interested in moving the Austin race to 2013," Circuit of The Americas president Steve Sexton said. "We know the U.S. market is important to the teams and their sponsors and 2013 certainly allows time for the Circuit of the Americas to be ready."
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