Australian GP posts big loss in 2010

[woof]

Apparently it costs the locals $46 million (assume AUS $'s ) but still ouch !
http://www.autosport.com/news/report.php/id/86712

Doesn't bode well for a long term future

[hornetrider]

How the hell did they manage to do that? How much does the midget charge them?

[Rex Ironstone]

yes but how much does it pump back into the economy.
A good investment I'd say (and it's only a 55min flight away).

[jonnylayze]

Rex Ironstone said:

yes but how much does it pump back into the economy.
A good investment I'd say (and it's only a 55min flight away).

only a 55 minute flight from other parts of Australia?

[Fire99]

I'm interested how some of the newer tracks make a profit when a significant number of the crowd have been put there by the officials.

[anonymous-user]

Which Grand Prixs actually make money?

[Eric Mc]

Fire99 said:

I'm interested how some of the newer tracks make a profit when a significant number of the crowd have been put there by the officials.

They don't.

[Munter]

Can the Brit GP make a profit after all the investment in the circuit?

[Eric Mc]

Munter said:

Can the Brit GP make a profit after all the investment in the circuit?

As an accountant, I am well aware that how you decide to allocate costs to an event will determine whether you show a profit or not.

The expenditure on the upgrading of Silverstone would be looked on as a capital cost and will therefore not be allocated directly against any one GP (or any one financial year). These costs will be depreciated over time so that the capital cost is charged to the profit and loss account over a number of years rather than all in one go.

So, to determine whether a single GP is profitable, you need to allocate against the income generated by the GP the costs directly atributable to the GP and also include the allocation of an apportionment of other ancilliary costs such as overheads and the relevant amount of depreciation on capital costs.

[jbudgie]

Hey Eric,

what are the lottery numbers for tomorrow.

[Eric Mc]

Accountants are better at predicting the past - not the future.

[Racefan_uk]

Silverstone will be helped a little by virtue of having two Grand Prix now too, of course. As well as having a few meetings/events a year where they actually get paying punters through the gate.

How some of the newer circuits have managed to stay open is beyond me, with no other events per year (or very very few) and no real crowd figures for the GP either.

Places like Melbourne, Monaco and Valencia will be slightly cheaper to an extent as they're parkland/streets the rest of the year so have another purpose. But, what else goes on at Yas Marina during the other 51 weeks of the year???

[Scuffers]

was at the Aus GP, and the one think that surprised me was the lack of crowd (relatively).

got the impression that it could be marketed much better, most of the people milling about were non-Aussies (or at least that was my impression).

[The devil]

I had a tour of silverstone this year and the guide said the midget charges 22 million for the grand prix, hence silverstone has visitor days to make up the shortfall and they just about make a profit

[Ultuous]

Racefan_uk said:

How some of the newer circuits have managed to stay open is beyond me, with no other events per year (or very very few) and no real crowd figures for the GP either.

Government involvement presumably, in places where hosting a GP is seen as being in the national interest in terms of the tourism/ exposure the event might generate?

[markcoznottz]

Eric Mc said:

Munter said:

Can the Brit GP make a profit after all the investment in the circuit?

As an accountant, I am well aware that how you decide to allocate costs to an event will determine whether you show a profit or not.

The expenditure on the upgrading of Silverstone would be looked on as a capital cost and will therefore not be allocated directly against any one GP (or any one financial year). These costs will be depreciated over time so that the capital cost is charged to the profit and loss account over a number of years rather than all in one go.

So, to determine whether a single GP is profitable, you need to allocate against the income generated by the GP the costs directly atributable to the GP and also include the allocation of an apportionment of other ancilliary costs such as overheads and the relevant amount of depreciation on capital costs.

British racing drivers club payed for most of the Silverstone infrastructure upgrades didnt they?.

[Fire99]

Eric Mc said:

Fire99 said:

I'm interested how some of the newer tracks make a profit when a significant number of the crowd have been put there by the officials.

They don't.

So in effect this is a bit of a non-story since it's not a unique issue to Australia rather than something that affects half a dozen or more circuits.

[The devil]

I had a tour of silverstone this year and the guide said the midget charges 22 million for the grand prix, hence silverstone has visitor days to make up the shortfall and they just about make a profit

[Shuvi]

Racefan_uk said:

Silverstone will be helped a little by virtue of having two Grand Prix now too, of course. As well as having a few meetings/events a year where they actually get paying punters through the gate.

How some of the newer circuits have managed to stay open is beyond me, with no other events per year (or very very few) and no real crowd figures for the GP either.

Places like Melbourne, Monaco and Valencia will be slightly cheaper to an extent as they're parkland/streets the rest of the year so have another purpose. But, what else goes on at Yas Marina during the other 51 weeks of the year???

Yas Marina, hmm?

Ferrari World.
Warner Bro's theme park.
Yas Mall.
Hotels and Hospitslity.
Residences.
The Marina.
Water Park.
Golf.

Other circuits have other sources of income, or not but Yas Marina is a leisure complex that has a circuit running through it. It's not a stand alone circuit.

Speeling

Edited by Shuvi on Friday 17th September 23:15