Bernie Ecclestone ... The Formula One boss will visit Melbourne for the first time since 2007 to discuss a possible extension to the city’s Grand Prix hosting rights. Photo: AP
John Stensholt and Lucille Keen
Formula One motor racing supremo Bernie Ecclestone will travel to Melbourne in March to meet Victorian Premier Ted Baillieu to discuss the financial terms of a possible extension to Melbourne’s Grand Prix hosting rights.
The visit by Mr Ecclestone, which will be the first time he has been in Melbourne since 2007, comes as the Victorian government faces renewed scrutiny over the cost of hosting the race.
Media reports last month put the annual licence fee paid to stage the race at more than $30 million annually. The 2012 fee was $US32.5 million, according to the reports, rising to $US37 million in 2015, the last race in the Victorian government’s current contract.
Mr Ecclestone told Fairfax Radio in January Melbourne should not complain about the cost of the race. “I can’t make them sign a contract, they do it of their own free will. (But) they shouldn’t complain after they sign.”
At an event in Melbourne to launch the Grand Prix on Tuesday, Mr Baillieu said the government would commence negotiations to host the race after 2015 at an “appropriate time”, but refused to say when.
Mr Baillieu said the Grand Prix had been good for Melbourne and was a key part of the state’s major events calendar, which gave Victoria a “competitive advantage” which the public should be proud of.
He refused to say if he was confident the race would be held in Melbourne after 2015.
“We intend to do whatever we can to ensure our major events calendar remains strong,” Mr Baillieu said. “And the Grand Prix has been a part of that and we look forward to it being a part of that in the future. You don’t know what you’ve got until it’s gone.”
Mr Baillieu said the fees had been misunderstood as they covered the arrival and the production of the Grand Prix. He said people from across the world, when he visits countries on trade missions, have told him when they talk about reasons why they want to invest in the state.
“The Grand Prix is part of that conversation,” Mr Baillieu said.
Grand Prix Corporation chief executive Andrew Westacott announced at the event watch manufacturer Rolex would be the principal race sponsor this year, taking over from Qantas.
A recent research report by Morgan Stanley estimated Melbourne’s contract was the seventh-most expensive race on the 19-race Grand Prix Circuit.
The 2013 Melbourne Grand Prix on March 17 will be the first Grand Prix for the year.
The Australian Financial Review
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