An interesting article on the negotiations to save the Canadian GP for 2009.
What a greedy little man.
MONTREAL, Nov 16 (Canadian News Wire) - Gérald Tremblay, Mayor ofMontréal, Raymond Bachand, The Minister of Economic Development, Innovationand Export Trade, Minister of Tourism and Minister responsible for theMontréal region, and the Honourable Christian Paradis, Minister of PublicWorks and Government Services Canada and responsible for the greaterMontreal, have given an update on their efforts with the Formula OneAdministration Limited and its president, Bernie Ecclestone, to keep theCanadian Grand Prix in Montréal."We were constantly guided in our negotiations by principles ofresponsible management. However, despite our endeavours and those of thebusiness community, the unreasonable demands of Formula One exceeded thetaxpayer's ability to pay. I would like to thank my colleagues from thefederal and provincial governments and members of the business community whojoined forces in an attempt to save the Grand Prix. Their concerted effortsattest to Montréal's vitality and could prove an opportunity for creating adevelopment fund for new events of all kinds that would stimulate theeconomy, tourism and employment," said the Mayor of Montréal."Whenever the Grand Prix of Canada needed help from the Government ofQuébec, we were there. We worked very hard over the past few weeks to ensurethere would be a Grand Prix in Montréal, while staying fiscally responsible.We cannot meet Mr. Ecclestone's unworkable demands. Unless he eases hisrequirements and adopts a different approach, there will be no Grand Prix inMontréal in 2009," said Minister Raymond Bachand."This is a loss for Greater Montréal and for all Canadians. The GrandPrix was a window on the world for Montréal and for the rest of Canada. Iwould like to salute my predecessor, the Honourable Michael Fortier, for hisefforts to save this event - efforts that were unfortunately unable to meetthe unrealistic demands of Mr. Ecclestone. As I recently said, 'yes to aGrand Prix, but not at any price,'" said the Honourable Paradis.A bit of historyOn October 7, we learned that the Grand Prix of Canada was no longer onthe 2009 Formula One schedule. Representatives of all three levels ofgovernment became involved at that point in finding ways of ensuring that theevent would be salvaged.On October 23, the three representatives went to London to meet withBernie Ecclestone and discuss the financial situation of the Grand Prix ofCanada.On October 28, the three representatives received a final contract offerfrom Mr. Ecclestone. This offer also required an eventual promoter of theevent to put up a government or bank guarantee of some $175 million over thenext five years.Because of Normand Legault's retirement, the government representativesactively sought a solid promoter who was experienced in organizing majorevents and had the financial capacity to sustain Grand Prix operations.Ultimately, no private promoter expressed interest in taking on such a greatrisk, considering the limited revenue generated by the event.In view of this fact, the government representatives envisioned settingup a non-profit organization (NPO) that would provide a new organizationalstructure.On November 4, another contract proposal based on the creation of such anNPO was sent to Mr. Ecclestone. The proposal included participation from thegovernment and tourist industry valued at some $10 million per year over fiveyears.Despite this fresh constructive proposal, Mr. Ecclestone refused to budgein his demands, particularly with respect to the length of the contract andits financial guarantees. Faced with this intransigence, he was presentedwith an enhanced proposal for the 2009 edition, but Mr. Ecclestone would notalter his position.
