F1 Canadian Grand Prix Set To Return To Montreal In June '10

Canadian Government, Tourism Montreal Will Each Contribute $5M Annually Under Deal

F1 Management Chair Bernie Ecclestone has accepted a five-year, $75M (all figures Canadian) deal to bring the Canadian Grand Prix "back to Circuit Gilles Villeneuve in 2010," according to Randy Phillips of the Montreal GAZETTE. The race was "dropped from the 2009 calendar because of a contractual dispute between Ecclestone and the event's former promoter, Normand Legault," marking the "first time in more than 20 years that the race was not held" in Montreal. The '10 race will take place June 13. The Canadian government and Tourism Montreal "each will contribute $5[M] annually for the duration of the deal." The Quebec provincial government "will provide $4[M] each year," while the city of Montreal will provide $1M. All parties in return "will receive a 30[%] share of ticket sales." The $75M deal is $100M "less than what Ecclestone initially demanded for a five-year contract when efforts to save the race began in earnest a year ago." It is "believed Ecclestone agreed to drop his asking price for a number of reasons, including the worldwide economic crisis, a new profit-sharing scheme with the teams, and pressure from car manufacturers involved in F1 for which North America is a lucrative market for their road cars" (Montreal GAZETTE, 11/28). Quebec officials indicated that the province "will collect $10[M] in additional tax revenues every year thanks to the event, earning a tidy return on its $4[M] investment" (CP, 11/27). In Toronto, Norris McDonald wrote, "I don’t see anything wrong with using public money to subsidize this race (a paltry amount, actually). We’re paying through the nose for the Olympics, aren’t we? How much of a subsidy does the Canadian Open golf tournament get? Don’t kid yourselves, every professional sport and athlete in this country is getting big-time tax breaks one way or another. At least with the Grand Prix, they’re up front about it" (THESTAR.com, 11/27).

WHAT'S OLD IS NEW: In London, Edward Gorman reported BMW Friday "cancelled the sale of its Formula One team" to Switzerland-based Qadbak Investments, and BMW "has instead agreed to sell the team back to their former owner and founder, Peter Sauber." The sale is "dependent on the FIA awarding the team the thirteenth slot on the Formula One grid next season and BMW has agreed to cut the workforce at its factory in Hinwil, Switzerland, from 388 people to 250." Sauber, who retained a 20% stake in the team after they were taken over by BMW in '05, is "believed to be sourcing financing from investors" in the U.S. (LONDON TIMES, 11/28).