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| A huge crowd turned out in 2012 |
The Circuit of the Americas is bullish about its future following a rather disastrous '15 that threatened the whole operation. "COTA is very healthy now, so I don't see any reason this event [F1] won't continue for a long time," racetrack Chair Bobby Epstein said. It is a complete "180" from his comments after last year's race, when he said, "To use a technical term. I think we're screwed."
This weekend's U.S. F1 Grand Prix will be the fifth hosted by the purpose-built venue near Austin, Texas. After encountering funding cuts by the state government and a "washout" of last year's race, COTA's spot on the F1 calendar was put in jeopardy. While the facility also hosts other racing series and concerts, its business revolves around the F1 event. But internal changes and rising attendance figures, along with new investments, put COTA back on track. "We really are the healthiest we've been since inception," Epstein told SBD Global.
"I see the company being in a very strong position. We've made some really good changes internally, in terms of how we manage expenses. The attendances for all of our events so far this year are up. We had some new capital coming in and reworked a lot of the debt structure." The racetrack did not disclose any financial figures, but Epstein said that the new capital came largely from existing investors. This year's MotoGP and World Endurance Championship event set new attendance records. The annual motorcycle race, which debuted in '13, drew a three-day attendance of 131,881 in April, up by nearly 10% over '15. T
he Lone Star Le Mans race increased its attendance figure by nearly 15%, from 65,000 in ‘15 to 74,457 this year. The track's on-site amphitheater, Austin 360 Amphitheater, brings a further 250,000 spectators to the facility each year, Epstein said. "F1 is maybe 20% of our visitors through the year," he said. "[The F1 race] is a tremendous part of our revenue, and a lot of the other things that happen during the year benefit from the fact that it is an F1 track. It does help attract a premium on the driving events for the rest of the year."
PUBLIC MONEY: Texas Governor Greg Abbott announced last year that the state's financial contribution to COTA will be slashed by about $6M. COTA, which reached a deal with a previous government for $25M annually over 10 years, depends on the state's contribution to offset F1's hosting fee. Asked about the state's decision, Epstein said, "All I'd say is I think the event means a lot to the state. It brings a lot of visitors in, and a lot of dollars into our community. It's our job to deliver that impact. We know the state sees the value in it. We just hope that they don't underestimate its impact." The F1 race in '13 generated an economic impact of $507M for the Austin metropolitan area, according to a study by New York-based Greyhill Advisors. This year, organizers expected the second-largest crowd since F1 gave its debut in Texas in '12. HJ Mai/Sportsbusinessdaily.com
