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Good news re: Melbourne Grand Prix


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#1 danstheman

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Posted 27 July 2012 - 07:41

Many of you might not be able to access this article, but here it is anyway. Good news for street circuits with high costs is that holding the GP in the centre of the city is much better from a promotional/tourist point of view than the circuits way out in the countryside.

http://www.heraldsun...x-1226436180627

A GLOWING report that estimates the Grand Prix generates more than $200 million a year in publicity for Melbourne has sparked calls for the Baillieu Government to lock in a new contract.

The report, obtained by the Herald Sun, says the Albert Park race has generated exposure for Melbourne valued at $816 million in the past four years.

British consultancy firm Formula Money says this year's race alone delivered publicity it valued at $217 million, up 14 per cent on the previous year.

The State Government is yet to begin talks with Formula One chief Bernie Ecclestone about extending the contract beyond 2015. Contract extensions are done on a five-year basis.

But Victorian Employers' Chamber of Commerce and Industry chief Mark Stone said the race was "a pillar" in the state's events calendar.

"This single event brings Australia, Victoria and Melbourne invaluable international and national exposure in terms of branding and positioning as a tourist destination, as well as unequivocal employment, tourism and services investment," he said.



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#2 V8 Fireworks

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Posted 27 July 2012 - 09:00

A GLOWING report that estimates the Grand Prix generates more than $200 million a year in publicity for Melbourne has sparked calls for the Baillieu Government to lock in a new contract.

Was this report written by Formula One Management Inc? :rolleyes:

Very skeptical...

Somehow street circuits are "all that" yet motorcycle grand prixs in the countryside draw crowds of 150,000+ every year to some venues.

Phillip Island is all wrong.. it is hours from Melbourne and not at all convenient.. yet the faithful, the believers find a way and arrive on their motorcycles to camp.

On the other hand, FOM insist on a street circuit in the small city of Valencia even though there is a formula 1 spec road course in the precinct...
What the hell man?


Is it simple snobbery that Bernie would prefer to race within walking distance of three-hat restaurants (Australian version of Michelin star)?

Edited by V8 Fireworks, 27 July 2012 - 09:03.


#3 BRG

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Posted 27 July 2012 - 18:37

Take a look at the Forrmula Money website and then make a judgement on the objectivity of the report.

How do you put a money value on publicity? Most people watching the Australian GP won't be aware or even care that it is in Melbourne. Some of them will even think it is in Austria.

#4 rhukkas

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Posted 27 July 2012 - 19:03

every Olympics you get the same thing - how great it will be for the local economy etc...

guess what? It's all horseshit. I read a report stating that no Olympics have ever turned over any measurable profit for a country... which was completely independant.

#5 Clatter

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Posted 27 July 2012 - 19:36

Take a look at the Forrmula Money website and then make a judgement on the objectivity of the report.

How do you put a money value on publicity? Most people watching the Australian GP won't be aware or even care that it is in Melbourne. Some of them will even think it is in Austria.


I was wondering the same thing. There is a lot of talk about virtual money, but zero about real money.


#6 BRG

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Posted 27 July 2012 - 20:40

So this is a report effectively sanctioned by FOM telling the gullible burghers of Melbourne how much their GP is worth to them, shortly before Bernie jacks up his demands.

#7 D.M.N.

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Posted 26 September 2012 - 10:16

http://adamcooperf1....m-on-2012-race/

Victoria tourism minister Louise Asher confirmed that the state government subsidised the 2012 Grand Prix by AUS$56.6m, or around £36.2m. That figure rose from $50.0m the previous year due to escalation fees built into the contract, and it will continue to rise over the next three years.

“This is a very, very expensive race and I personally am not happy with this level of subsidy,” Channel Nine reported Asher as saying. “The Brumby Labor government signed off on a contract that is too expensive for the taxpayer in my opinion.”

However she said that the race was good for the state: “What the Baillieu government is trying to do is manage a major event which has real benefits for Melbourne and regional Victoria within the parameters of the contract we inherited.”



#8 krapmeister

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Posted 26 September 2012 - 11:42

I somehow doubt Bernie is going to want to take less money than he's getting currently...

#9 Ravenak

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Posted 26 September 2012 - 12:01

That's just Asher's POV, she can say what she wants, the benefits still exceed the costs.

And as long as it'll be the case, no worries.

#10 pdac

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Posted 26 September 2012 - 12:02

I don't know how he does it, but somehome Bernie manages to get people to sign contracts that cost more and more as time goes on and they only realised they've got a bum deal when it's too late and it'll cost them more to quit the contract than to stick with it.

#11 SenorSjon

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Posted 26 September 2012 - 12:05

I hope Bernie loses the night idea. The gimmick was nice once, but for example Singapore feels like racing in a tunnel for 2 hours. You hardly get any view of the surroundings and I'm at a loss (like MSC ;)) where a driver is on the track when the camera switches to another driver.

#12 rhukkas

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Posted 26 September 2012 - 12:13

It's not just Bernie, it happens all the time. The IOC fool people into wasting billions of a gloried version of a sports day. Notice how all the 'positive economic benefit of the Olympics' stories have disappeared since it was fairly obvious that was all bollocks.

#13 stanga

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Posted 26 September 2012 - 12:30

I'm thinking of emigrating to Melbourne so I sincerely hope the race is always held there.

#14 Ravenak

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Posted 26 September 2012 - 13:02

I'm thinking of emigrating to Melbourne so I sincerely hope the race is always held there.


You'll be fine in 2013.

#15 stanga

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Posted 26 September 2012 - 14:22

You'll be fine in 2013.


Too soon, I'm afraid. 2014 is more realistic.