Rumour: Canadian GP for sale?

[devilmaster]

http://www.tsn.ca/auto_racing/news_story.asp?ID=57444&hubName=auto_racing

This might tie in with something I heard when Canada first loss the GP. It was talked about that Norman Legault had one of the cheapest promoter agreements with Bernie. There was a comment out there that, by dropping the Canadian GP, Bernie had cancelled the contract, and now gets to renegotiate a new contract for more money.

Plus, Air Canada is no longer the presenting sponsor of the race, so they have to find a new main sponsor.

Steve

[RaceChic]

Quote:
"Legault, who says it costs him $20-million a year to stage the event, says there are no current plans to sell but admits he is open to the idea. The race is reportedly brings in $80-million to the city of Montreal."

Dayum. That's some serious revenue!!! :eek:

So basically, Bernie shot himself in the foot and may have to pay more for the Canadian GP to get it back than he did originally? Was Air Canada dropped as a sponsor at the same time the GP was dropped or was it a separate deal? :confused:

[Chaos]

Air Canada was out before the cancellation of the race. This was part of their restructuring

[devilmaster]

Originally posted by RaceChic
So basically, Bernie shot himself in the foot and may have to pay more for the Canadian GP to get it back than he did originally?

No, its the other way around. Bernie gets money from the GP to hold the race. Norman Legault has to pay Bernie. Now what I heard was Norman didn't have to pay too much, as it was an older, long-term contract.

But because it was removed, the word I heard was that the contract was basically cancelled, and now Bernie wants a new or renegotiated contract and more money for bringing F1 to Montreal.... above and beyond the extra monies he now wants for not having tobacco logos.

Steve

[RaceChic]

So Steve, how is that going to help us get the Canadian Grand Prix back?? :confused: :saywhat:

(That's what happens when you read something too quickly.) :gomer:

[TedN]

Gillett investing in Canadian GP?
by Canadian Press
10/18/2003

MONTREAL (CP) - George Gillett, the majority owner of the Montreal Canadiens, confirmed Saturday he is part of a group looking at investing in the Canadian Grand Prix in order to save the threatened Formula One race.

A front page story in Montreal La Presse on Saturday said Gillett and Molson Breweries have been in talks for several weeks with promoter Normand Legault about either buying or becoming a major shareholder in the Grand Prix.

``I can't tell you that significant progress has been made,'' Gillett said at the Bell Centre, where the Canadiens were to play the Toronto Maple Leafs on Saturday night.

``There's nothing to report. It's still in the process. It was good reporting that found the story, but when it gets reported early, because you've got the government involved, it often puts these discussions in jeopardy.''

There is fear that the involvement of Gillett and Molson could bump up the price Formula One boss Bernie Ecclestone will demand to keep the race on the 2004 schedule.

``There's many different parties involved, many moving parts, with Mr. Ecclestone, Mr. Legault, Molson and our family,'' Gillett added.

The Montreal race, which draws more than 300,000 spectators each year to Circuit Gilles-Villeneuve, was pulled off the 2004 calendar last month due to federal laws banning tobacco sponsorships that came into effect Oct. 1.

The race was put back on the schedule last week on the condition that organizers negotiate compensation to the teams for the extra race and for the five teams that would have to remove tobacco logos from their cars.

The compensation has been estimated anywhere from $10 million US to $30 million.<

``There certainly is an interest on the part of a small group of folks to try and save Formula One for Montreal,'' Gillett said. ``This is a great city.

``It is passionate about car racing. It's passionate about its sports. That group that is deeply interested loves Montreal as much as the fans do, so there has been an interest in trying to figure out a way to save it.''

Gillett founded the Denver Grand Prix in the CART racing series and said he is a life-long motor racing fan.

``So this is a natural extension for us to try and work out something and help save the race for Montreal,'' he said.

Molson president Dan O'Neill told La Presse the brewery ``can contribute to saving the Grand Prix, but as yet we are a long way from a definitive solution.''

The newspaper said that whether they buy the race or become major shareholders, Gillett and Molson would want to keep Legault in charge.

A sticking point could be that Labatt is currently a major sponsor of the event.