Thursday, September 16, 2010

Australian Grand Prix records big losses

The Australian Grand Prix is held in Albert Park, Melbourne

This year's Australian Grand Prix cost taxpayers almost $10 million more than the previous Melbourne race.

The 2010 loss amounts to $49.2 million, more than double the loss of 2006, according to a report in The Australian newspaper. The figure emerged in the Australian Grand Prix Corporation's annual report, which claimed the global financial crisis continues to have a "significant impact" on the Albert Park event.

An independent MP called the figures "embarrassing" and "outrageous", but major events minister Tim Holding said Formula One is worth the cost.

"The economic benefit to Victoria far outweighs the cost of staging the grand prix," he said.

A further $7.8 million is set to be spent on improvements to the venue, located around public parklands south of the city. Ten years ago, the race lost less than $4m annually.

Albert Park is contracted to stay on the F1 calendar until at least 2015.

Source: ESPNF1

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