U.S. Grand Prix promoter Bobby Epstein says it would make sense for Formula One’s new American owners Liberty Media to buy some circuits as part of their long-term strategic plans for the sport.
The Circuit of the Americas (COTA) co-founder and chairman, whose Austin, Texas, track is the country’s sole purpose-built F1 facility, told Reuters he would be happy to do a deal “at the right price”. Speaking ahead of tickets for the Oct. 22 race going on sale on Friday, he added, however, that there had been no discussions with Liberty. “I do think it makes a lot of sense for them to own some circuits. It would have to be part of any long-term strategy for them,” said Epstein, whose race is the only U.S. round on the current calendar, in a telephone interview. “I see a lot of logic and business reasons for them to own some circuits.”
Formula One’s previous business model, which the new owners have said they want to change, has been based on television revenues and circuits paying significant hosting fees with an annual escalator. Austin’s annual fee has been reported at around $33 million, with $25 million coming from state subsidies based on a formula for calculating how much economic activity the grand prix generates for Texas. COTA drew a record three-day crowd of 269,889 last year, thanks mainly to singer Taylor Swift holding her long-awaited first concert of the year on the Saturday night. This year’s race has Justin Timberlake lined up as the headline act.
“I think all of the circuits struggle under the current environment,” said Epstein. “If they (Liberty) change it and help the circuits survive, are they better off owning the circuits than making concessions? Are they actually giving up profitability by not owning the circuits? If they (the circuits) are going to make money from an F1 race, then F1 might as well own that profit.”
Several of Europe’s oldest circuits, such as Silverstone which has been looking for a buyer, struggle to make money while Germany is off the calendar this year for financial reasons. Liberty completed their takeover in January, ousting 86-year-old supremo Bernie Ecclestone and replacing him with Chase Carey, who has appointed Sean Bratches as managing director for commercial matters.
Asked directly about the possibility of Liberty buying circuits, Bratches said only that there were “a number of different models that can be pursued”.
Formula One is seeking to expand in the Americas, with talk of adding street races in U.S. “destination cities” like Las Vegas, Miami, Los Angeles and New York and treating each race like a Super Bowl with events through the week.
