zzdcar
Home
/
Reviews
/
Racing
/
Does This 2010 Letter Mean Texas Has To Pay To Host Formula One After All?
Does This 2010 Letter Mean Texas Has To Pay To Host Formula One After All?-May 2024
2024-02-19 EST 22:11:36

As the United States Grand Prix for 2016 in the wake of a wavering commitment from the State of Texas, race-watchers have pointed to one recently-resurfaced letter from 2010 as proof that the state can’t shake its commitment. But will it have any sway with Texas’ new state officials?

reports this letter from former Texas Comptroller of Public Accounts Susan Combs, sent in 2010, says in no uncertain terms that the state will pay $25 million per year to host F1 races in the state from 2013 through 2021.

Currently, the United States Grand Prix at Circuit of the Americas is listed as “subject to agreement” on the 2016 F1 schedule. The U.S. Grand Prix organizers rely on receiving the full $25 million contribution from the state’s Major Events Trust Fund to make their payments to host the F1 race, particularly after this year’s that was spoiled by hurricane-affected weather and close timing with the nearby Mexican Grand Prix.

Between getting hit with torrential downpours and Formula One’s decision to host the Mexican Grand…

Instead, the state wants to to $19.5 million based on a new method of calculating an event’s economic impact.

The letter from Combs not only outlines the amounts that will be paid, but the dates by which Texas will send the money:

In this letter, Combs stating “we will be sending $25 million dollars to [Formula One World Championship Limited] by the end of July 31st” in writing to F1 chief executive Bernie Ecclestone himself sounds pretty certain. Forbes points out that this letter was written without any caveats, such as a provision that would allow for changes in state government to modify the agreement made between F1 and the state.

Surprisingly, Forbes says that Circuit of the Americas chairman Bobby Epstein said last month that there was no written agreement from the state to pay the $25 million. Thus, this letter could be all that the circuit and F1 have in lieu of a regular contract.

However, Texas Governor Greg Abbott told Forbes that the letter was “merely an effort to indicate broad support” and thus, would not be a binding contract between the two parties. Seems to us like that’s the kind of thing that might have to be settled in court.

We’ll see whose interpretation of this letter is right in the following months, and hopefully an agreement can be worked out for the benefit of everyone. Even Abbott admitted that the F1 grand prix “pumps hundreds of millions of dollars into our economy” in a promotional supplement quoted by .

While F1’s high sanctioning fees certainly exacerbate this problem, it’s still poor form for the state to promise something and then go back on their agreement. Perhaps the state can negotiate to move COTA’s (tentative) date further from the Mexican Grand Prix this time to lessen the facility’s reliance on state funding to host the event.

Contact the author at .

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Racing
After Delivering 8 Seasons At The Back Of The Grid, Haas F1 Team Dumps Guenther Steiner
After Delivering 8 Seasons At The Back Of The Grid, Haas F1 Team Dumps Guenther Steiner
The partially North Carolina-based squad has determined that after , it needs to mix things up a little. The team’s firebrand has been following an abysmal 2023 season which saw the team score just four points-paying finishes. The team’s , where scored a fourth-place finish, but that season too...
May 14, 2025
Race Team Would Rather Create A Fake AI Woman Rather Than Hire A Real One
Race Team Would Rather Create A Fake AI Woman Rather Than Hire A Real One
In another unsurprising example of motorsport’s inhospitable mindset toward hiring competent women, the Racing team has announced a new partnership with Ava Rose, a literal , who will... engage with fans? Share knowledge about technology? “Navigate the cutting edge of innovation to create positive change” (whatever that means)? I...
May 14, 2025
You've Probably Never Heard Of The Coolest Canadian Car Ever Built
You've Probably Never Heard Of The Coolest Canadian Car Ever Built
Name a car from the early 1960s built by a famed racing driver with curvy, lightweight aluminum bodywork, a big American engine, and a reputation for being unruly and fast as all hell. Your first thought was probably the famed Shelby Cobra, did you know there was a who...
May 14, 2025
Local Businesses Want Compensation After Allegedly Losing Money During Formula 1 Las Vegas Grand Prix
Local Businesses Want Compensation After Allegedly Losing Money During Formula 1 Las Vegas Grand Prix
If you listen to Formula 1 or local officials from Las Vegas and Clark County, you’d probably think November’s inaugural Las Vegas Grand Prix was a success. Some sources estimated that the city of Las Vegas made over $1 billion in revenue from the event — but there were...
May 14, 2025
Get Ready To Spend All Your Money On Retro Formula 1 Merch
Get Ready To Spend All Your Money On Retro Formula 1 Merch
Fellow nerds, get ready to open your wallets, because I’ve found what may be the greatest store of all time. With designs from Formula 1 teams like , you’re sure to find something that fits your particular nostalgic niche. I’d like to introduce you to Racing Retro. I first...
May 14, 2025
Listen To In-Car Audio From Race Cars While You Work
Listen To In-Car Audio From Race Cars While You Work
If you follow racing in the U.S., you probably already know about the . Most of the episodes are too much of a distraction to put on as background noise while you work, but a couple of recent entries in his series have been working incredibly well for me....
May 14, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved