Future of US Formula One Grand Prix in doubt

It took Shakespeare 25,948 words to fully detail the tragedy of his star-crossed lovers Romeo and Juliet, but Circuit of the Americas chairman Bobby Epstein required just two to describe his grand prix’s relationship with Formula One.

The decrease comes as a result of a review by the Texas state which has concluded Formula One doesn’t generate enough money and is therefore subject to a cut in contributions.

$19.5 million is still a lot of money, but with the huge expenses and low margins of running a race weekend, that reduction could lead F1 boss Bernie Ecclestone to cancel the US Grand Prix indefinitely.

Bernie Ecclestone, who agreed the initial contract on the basis of the $25 million payment, is also sceptical the race will go ahead with the cut to the payment.

The governor’s office admitted the number of people attending the Austin race has dropped since it began in 2012, but said the change in funding was down to the use of different formulas to calculate the economic impact of the race. Ecclestone told the Austin American-Statesman that if funding was changed “it’s going to make it hard to continue the race in Austin”.

“An entire facility was constructed based on that deal”, COTA spokesperson Dave Shaw added. “If the calculation is changed now, that’s effectively changed the terms of the deal”.

State officials say the Governor’s priority is on protecting taxpayers and following the rules for the Major Events Reimbursement program.

Hammered by a hurricane last month, the Circuit of the Americas, which hosts the US Grand Prix, is now facing the loss of state grants that were vital to balance the books. However, it is worth noting the Austin Grand Prix brings in signficantly more fans from outside Texas.

The Circuit of the Americas in Texas, which now hold the race, is due to lose 20 per cent of their funding, which was due to be (£164m) $250m over a ten-year period from 2012.