Negotiations to maintain the Canadian Grand Prix have failed and further efforts will no longer take place.
That is the situation confirmed at a press conference held Sunday by Montreal Mayor Gérald Tremblay and the Québec province's Minister of Economic Development, Raymond Bachand, accompanied by former Federal Minister Michael Fortier who stayed on the team as a negotiator.
Following weeks of talks with Formula One CEO Bernie Ecclestone and the many efforts provided by the federal, provincial and municipal levels of government, including a special 1% room tax coming from Montreal's hotel association, a final offer was presented last Thursday to save Formula One's only North American round.
An agreement could not be reached, and therefore no Canadian Grand Prix will be held for the foreseeable future.
Several economic plans were worked upon yet Ecclestone never wavered from his initial demands which consisted of a guarantee totaling $141m over the next five years, "despite the economic situation which exists in the world today," mentioned Bachand. No one would offer such a guarantee, he added.
The only feasible plan for the Canadian GP was an amount topped at $89m to cover the period until 2013, with 75% of the eventual revenue going to FOM in addition to its exclusive trackside revenues. However, that plan was denied as well, prompting the government officials to throw in the towel. "Our last economic card is on the table," said Minister Bachand.
"We are so far from what he (Ecclestone) is asking - that is why we find ourselves where we are today," stated Bachand, who indicated that other "enthusiastic" organisations such as the world-renowned Cirque du Soleil also refused to participate in a rescue plan whose economic demands seemed unrealistic.
"We are satisfied that we tried everything possible," said Mayor Tremblay.
Ecclestone has been concentrating on higher-paying venues in light of the debt owed by F1's owner, CVC Capital. The Asian markets have been benefiting from this need at the expense – literally – of traditional destinations.
With the withdrawal of the French and Canadian rounds, the 2009 Formula One calendar now counts 17 races. In contrast, Ecclestone is seeking to find a solution for the Chinese Grand Prix in Shanghai, which has been losing money and is uncertain of renewing its contract beyond 2010 – some reports indicate that even the 2009 Chinese race is in doubt.
As for any Canadian GPs in the future, "unless Mister Ecclestone changes his mind before the final calendar on December 1st, it's over," declared Bachand.
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vinny... i'd like to suggest one other thing to keep in mind, with 'us' canadians (and probably the americans) ... formula one is perceived by many as almost too rich for the blood, that is, it's not a sport that just anybody can be involved in financially... you would not believe the number of parents here want their kids to be involved in some kind of sport that 'might' one day lead to a professional career in one or another... possibly, it's a case of 'reliving' their youth through their own children, regardless racing a car around a track is not 'first' choice for many... =;-)
sorry, vinny, i got off on a rant (yes, again)... bascially, i would imagine that the corporate and government support for formula one that is evident many countries has not been developed here in canada, nor in the states, thus you have 'poorer' countries willing to take fiscal responsibility and a bit of a gamble, in order to bring 'possible' tourism to the events... also, we have a lot of 'watchdog' and special interest lobby groups here who literally hound politicians when a financial decision is made that does not seem 'sound'... unfortunately, sponsoring a formula one race may 'seem' frivolous to groups wanting housing and other social assistance...
Irrespective of how it affects the future of F1 he seems purely motivated by amassing as much cash as possible before he pegs out. And as he stated the other day he has no intention of relenquishing his grip voluntarily.
MikeQ-
Seems like Bernie's just interested in who will pay his price right now, and doesn't give a @#$% where it's held, or if it would foster a growing even more lucrative market in the future if he just gave a little. China is a good example. It could be all she wrote for them in 2010 and they JUST got that track built.
Thanks Q-dawg! ;-)
Vinniedawg, like I said it probably boils down to whether the Goverment is willing to support it or not. Clearly the Fee Bernie is asking is getting too large compared to the income generated to make it appealing to a private company, trying to break even.
Saggi-
I may have misunderstood your response, but to be clear, I am 100% behind Canada and especially the United States coming back onto the calandar. I love the Circuit Gilles-Villeneuve. I look forward to it each year. My point was I didn't understand how economic giants like the U.S. and Canada struggle to hold on to their respective GP's and the other smaller, and far poorer countries, like Brazil have no trouble at all it seems.
sounds like we're on the same page, mike q.... =;-)
vinnydawg67 -- i can't speak as an expert on the whys and why nots of the economics of england, france and the states, however in canada, our national sport is hockey which is accessible to many, whereas formula 1 is more 'exclusive' in comparison... i'd suggest to you, that you'd not find 'that' many sponsors willing to dole out the kind of money that ecclestone requires as a guarantee for formula one... but, please, don't deny the few of us who'd love to see the grand prix in montreal... we can support it, sure, but ecclestone needs to be realistic if he wants to generate a larger fan base here...
We may have differences about Hamilton - but the entire board seems united about Ecclestone - this person should be eliminated from the sport. His autocracy and greed belongs to the 19th Century. Unfortunately money rules and this criminal has a great deal.
Bernie Ecclestone will die..he only got 2- 3 months to live..that greedy bastrard will go to hell..Burn them All..
The problem is Eastern Governments are willing to pay silly amounts of money to host an F1 race as they see it as a sign of prestige and show that they are becoming "Westernised", (like thats a good thing). In the existing countries the Governments aren't really interested in supporting anything much other than Football.
The British taxpayers stumped up £900 Million for Wembley & another £10 Billion (at least) will go on the Olympics. Yet they can't afford £30 Million to upgrade Silverstone to meet Bernies demands and keep the British GP.
After Bernies "I'll never retire" statement the Teams really do need to break away from "F1 Management" and set up a system whereby they get a decent share of the huge revenues they generate, then F1 would once a gain become the pinnacle of motorsport, not just a fortnightly "Spectacle" to generate money for Benie.
How can Hungary, Brasil, and Turkey afford GP's while England, France and America and Canada are seemingly crushed and forced to exclusion by the economics of the situation?
sagittarius1958... I second that....thanks for the support paul t
One of the obvious ways to cut costs on F1 is for Bernie to demand less money from the organisers and to give teams more money from TV rights and other incomes. It is just not right when teams are asked to cut costs, organisers are asked to pay more money and Bernie bank account is swelling year on year...
Bernie will only retire to the Grave? That can be ARRANGED!
paul t... thanks... as a canadian fan of formula one racing, appreciate your thoughts!!
This just goes to show that FOM care only about money...their money and don't give a jot about sport. I am sad for Formula One and disgusted at the greed displayed by Mr Eccelstone.
This is a very sad day for Formula One, and as an Englishman, I am embarrassed. We have lost the founder, the French Grand Prix, now the Canadian Grand Prix, as well as the American, and as an Englishman, all I can do, is apologise, to the French, Canadians and Americans. For the behaviour, of Bernie Ecclestone, I know that I am nobody, just an ordinary, long time F1 fan, and unfortunately, no one at the top of this game, is going to say anything. All I can say, not every Englishman, is like Bernie Ecclestone. Unfortunately, yesterday, Ecclestone says, he is not retiring from F1, only to the grave. Bad news all round then.
Its a shame to see another classic race going..... When will the British GP disapear?
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