Yesterdayâs statement from Texas state comptroller Susan Combs to the
effect that no state funds will be paid out in advance of the 2012 US GP
would appear to contradict a letter she sent to Bernie Ecclestone in May
2010.
In that letter â sent just before the Austin race was confirmed and
clearly key to clinching the deal â she promised that the $25m
sanction fee for the first race would be paid by July 31 2011.
The letter entered the public record earlier this year when a group of
Texan taxpayers challenged the expenditure on the race, claiming that it
contravened several elements of the guidelines for the Major Events
Trust Fund.
The 13-page legal document, which I acquired in June, contains some
fascinating details, but if you have not seen it yet the real gem is the
letter. Addressed to Ecclestone, it reads as follows:
May 10 2010
Formula One World Championship Limited
Attn: Mr Ecclestone
Dear Sirs,
In response to the requirements for the race promotion contract for the
Formula 1 United States Grand Prix in Texas, I hereby certify the
following:
With the understanding that the first full Formula 1 Grand Prix will be
held in Texas in 2012, full funding for the entire sanction for 2012
will be paid to Formula One World Championship Limited (âFOWCâ) no
later than July 31st, 2011.
In subsequent years, two through ten, of the race promotion contract,
ie 2013 through 2021, we will be sending $25m to FOWC by the end of July
31st of each year preceding the actual race.
We look forward with great enthusiasm to this event and a successful
mutually beneficial relationship for many years to come.
Sincerely
Susan Combs
Texas Comptroller of Public Accounts
However, not only did that payment not come through by July 31 â
which presumably played a big part in creating the current crisis â
Combs now says that no payment can be made until after the event has
taken place.
Yesterday she said in a statement: âLet 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.
âIf an METF application is submitted, it will be thoroughly vetted
and economic impact data scrutinized based on the actual circumstances
for that event. 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. My position on that has not
changed.â
In fact it seems that her position has changed since she wrote to
Bernie.
>>>
Bernie Ecclestone has confirmed that the US GP is on the verge of
disappearing from the calendar â and that nobody holds a contract to
run the race.
In essence the final deadline for any kind of resolution is the FIA
World Motor Sport Council meeting in India on December 7.
Speaking to Ian Parkes of the UKâs Press Association, Ecclestone
admitted that the race would be dropped if there was no solution:
âYes, it will be, for sure, 100%.â
Ecclestone also confirmed that Tavo Hellmundâs Full Throttle
Productions no longer holds a contract to run the race, because it has
been cancelled. COTAâs Bobby Epstein has thus been in negotiation over
a totally new contract, rather than an acquisition of the one held by
Hellmund.
âWe had an agreement with Full Throttle Productions,â Ecclestone
told Parkes. âEverything was signed and sealed, but we kept putting
things off like the dates, various letters of credit and things that
should have been sent, but nothing ever happened.
âThen these other people [Epstein and COTA] came on the scene, saying
that they wanted to do things, but that they had problems with Tavo.
âThey said they had the circuit, and that they wanted an agreement
with me. I told them they had to sort out the contract with Tavo, which
they said they would. But that has gone away now because weâve
cancelled Tavoâs contract as he was in breach.
âWeâve waited six months for him to remedy the breach. He knows
full well why weâve cancelled. Heâs happy. But these other people
havenât got a contract. All weâve asked them to do is get us a
letter of credit.
âWe are looking for security for money they are going to have to pay
us. That is via a letter of credit, normally from a bank. If people
donât have the money they find it difficult to get the letter of
credit, and so we donât issue a contract.â
The big problem is that the race no longer has any guarantee of
receiving $25m from the Texas Major Events Trust Fund, which was to have
funded the sanctioning fee due to Bernie and the Formula One
organisation.
Wholi
bellsouth.net)