Adam Cooper F1

Tavo Hellmund said today that the 2012 US GP could still go ahead if Bernie Ecclestone is paid – but insisted that the finances were nothing to do with him.

Speaking at a hastily arranged press conference, Hellmund admitted that things began to go wrong when he fell out with his partners, but said that the real problem was the failure to pay Ecclestone the agreed sanctioning fee, despite being given extra time to do so.

“In late spring amongst our partners we had just a view of thinking of a different direction of the way things should go,” he said. “That happens, and no one’s necessarily right or wrong. That created the current friction, but nothing that would derail the project.

“The real reason that we’re having this press conference today, instead of announcing a huge sponsor, which I hope we can do in a couple of weeks, is the simple fact that we don’t have a contract with F1. And the reason we don’t have a contract with F1 is that as a project we have failed many times over to fulfil our financial obligations to F1. It’s literally that simple.

“I was encouraged today to see some news reports that the door is still open for us to be able to fix that, and I’ve also been encouraged in recent days to see that apparently all the funding’s in place. And so with that being said I’m really optimistic and hopeful that we’re going to get this done and we’re going to have a Grand Prix next year.”

Asked why Ecclestone hadn’t been paid Hellmund said: “To be perfectly honest, the money part has never been my role. If I’d had the money I wouldn’t have been willing 18 months ago to give up the majority of my project!”

Pushed further on who was supposed to pay, he said: “The other partners in COTA.”

Later he elaborated on the negotiations with Bernie.

“Right now we should be praising Mr Ecclestone. We were in breach on multiple issues since as late as May. He sent numerous requests and letters that we were all aware of, of how to fix it, and we failed to do that.

“More than anything this project needs to meet its financial obligations to F1. It’s just that simple. We can put a spin on it… Other people can point fingers at who’s to blame. I don’t want to do that.

“The project has been underfunded, and that’s not a surprise to anybody. I don’t think there’s any shame in that. If you budget for $150m or $200m and the project’s $300m, it’s a considerable difference. But again, I’m not party to that.

“I think the thing that’s disappointing is that the timing was just barely off. Mr Ecclestone gave us opportunities for three months, literally, and I like to think that my relationship with him, although strained and tested now, allowed us that flexibility. When they ask you for payment and you don’t do it repeatedly, over and over and over, eventually…

“And even as recently as the now publicised meeting three weeks ago he told us you can pay this now and we’ll continue with the current contract, or we can tear it up and issue a new one, or we’ll just cancel the whole thing. We didn’t for whatever reason choose to remedy the one that was in place, and to my knowledge there was another one sent that hasn’t been executed yet, but maybe it will.

“There’s a solution. If Mr Ecclestone and FOM get their money, there’s a Grand Prix next November. It’s that simple.”

He implied several times that the money is now in place.

“It’s not anybody’s fault that the project has been underfunded. No one’s done that intentionally, but it sounds like maybe that’s not the case now, and I hope everything will move forward.”

Hellmund insisted that there had been additional costs connected to the construction due to gas lines and unexpectedly challenging soil conditions, before adding once again that “…it’s not my place to speak about the money and the financing part – it’s not my role.”

He also confirmed that he would be willing to step out if the need arose and admitted that there were ongoing negotiations to that end.

COTA put out a short statement tonight indicating that it is amenable to postponing the first US GP in Austin until 2013.

The statement was in response to recent comments in the media from Bernie Ecclestone to the effect that a new contract could run from the later date, given that the original one with Tavo Hellmund has been cancelled.

However, the statement failed to address the bigger picture painted by Ecclestone – ie the apparent lack of funding.

COTA boss Steve Sexton said: “We have been excited for and working towards a 2012 USGP race and now understand that Mr. Ecclestone is interested in moving the Austin race to 2013. We know the U.S. market is important to the teams and their sponsors and 2013 certainly allows time for the Circuit of The Americas to be ready.”

Bernie Ecclestone has stressed that COTA’s final chance to save the 2012 US GP will come well before the crucial World Motor Sport Council meeting in India on December 7.

Ecclestone clearly wants time to shuffle the calendar around before the WMSC gathering, should it been decided that Austin is definitely out.

“It needs to be before that,” Bernie told Reuters today. “We don’t need any deadlines, having to thrash around at the last minute to do something. It’s gone on long enough.

“They have got next week anyway. We are going to be in Brazil so they can come back next week.”

Ecclestone made it clear that he held out little hope that the event could be saved, stressing that it all boiled down to lack of finance. The Texas state had promised to fund the sanctioning fee (see previous story on this blog) before Comptroller Susan Combs changed her mind.

“There’s nothing to save. They can’t bloody well pay. What do you want me to do, wait until next year? To put all our cars on it, run around the circuit and everything and come back with no money? The teams want paying.

“It’s not brinkmanship, it never has been with me. I’ve been trying to do a deal now with these people for 18 months or more…if they had the money, I’m sure there would be no problem.”

Yesterday’s statement from Texas state comptroller Susan Combs to the effect that no state funds will be paid out in advance of the 2012 US GP would appear to contradict a letter she sent to Bernie Ecclestone in May 2010.

In that letter – sent just before the Austin race was confirmed and clearly key to clinching the deal – she promised that the $25m sanction fee for the first race would be paid by July 31 2011.

The letter entered the public record earlier this year when a group of Texan taxpayers challenged the expenditure on the race, claiming that it contravened several elements of the guidelines for the Major Events Trust Fund.

The 13-page legal document, which I acquired in June, contains some fascinating details, but if you have not seen it yet the real gem is the letter. Addressed to Ecclestone, it reads as follows:

May 10 2010

Formula One World Championship Limited

Attn: Mr Ecclestone

Dear Sirs,

In response to the requirements for the race promotion contract for the Formula 1 United States Grand Prix in Texas, I hereby certify the following:

With the understanding that the first full Formula 1 Grand Prix will be held in Texas in 2012, full funding for the entire sanction for 2012 will be paid to Formula One World Championship Limited (‘FOWC’) no later than July 31st, 2011.

In subsequent years, two through ten, of the race promotion contract, ie 2013 through 2021, we will be sending $25m to FOWC by the end of July 31^st of each year preceding the actual race.

We look forward with great enthusiasm to this event and a successful mutually beneficial relationship for many years to come.

Sincerely

Susan Combs

Texas Comptroller of Public Accounts

However, not only did that payment not come through by July 31 – which presumably played a big part in creating the current crisis – Combs now says that no payment can be made until after the event has taken place.

Yesterday she said in a statement: “Let me state clearly: We have not paid out any money for the Formula 1 event. The only dollars that can be spent on the United States Grand Prix are tax revenues attributable to the successful running of a race.  The state of Texas will not be paying any funds in advance of the event. Further, as is the case with all METF events, each application will be reviewed and analyzed for its likely economic impact and only after the race occurs would any funds be disbursed.

“If an METF application is submitted, it will be thoroughly vetted and economic impact data scrutinized based on the actual circumstances for that event. Ultimately, I am responsible for protecting the interests of Texas taxpayers, first and foremost. I will not allow taxpayer dollars to be placed at risk. My position on that has not changed.”

In fact it seems that her position has changed since she wrote to Bernie.

Bernie Ecclestone has confirmed that the US GP is on the verge of disappearing from the calendar – and that nobody holds a contract to run the race.

In essence the final deadline for any kind of resolution is the FIA World Motor Sport Council meeting in India on December 7.

Speaking to Ian Parkes of the UK’s Press Association, Ecclestone admitted that the race would be dropped if there was no solution: “Yes, it will be, for sure, 100%.”

Ecclestone also confirmed that Tavo Hellmund’s Full Throttle Productions no longer holds a contract to run the race, because it has been cancelled. COTA’s Bobby Epstein has thus been in negotiation over a totally new contract, rather than an acquisition of the one held by Hellmund.

“We had an agreement with Full Throttle Productions,” Ecclestone told Parkes. “Everything was signed and sealed, but we kept putting things off like the dates, various letters of credit and things that should have been sent, but nothing ever happened.

“Then these other people [Epstein and COTA] came on the scene, saying that they wanted to do things, but that they had problems with Tavo.

“They said they had the circuit, and that they wanted an agreement with me. I told them they had to sort out the contract with Tavo, which they said they would. But that has gone away now because we’ve cancelled Tavo’s contract as he was in breach.

“We’ve waited six months for him to remedy the breach. He knows full well why we’ve cancelled. He’s happy. But these other people haven’t got a contract. All we’ve asked them to do is get us a letter of credit.

“We are looking for security for money they are going to have to pay us. That is via a letter of credit, normally from a bank. If people don’t have the money they find it difficult to get the letter of credit, and so we don’t issue a contract.”

The big problem is that the race no longer has any guarantee of receiving $25m from the Texas Major Events Trust Fund, which was to have funded the sanctioning fee due to Bernie and the Formula One organisation.

An analysis by Pirelli has confirmed that Sebastian Vettel’s right rear tyre did not suffer any kind of structural failure – and the Italian company has not ruled out debris some kind of “outside circumstances” as the cause.

A Pirelli statement today said:

“Following an extensive investigation of the circumstances that led to Sebastian Vettel’s right-rear tyre suddenly deflating on the opening lap of the Abu Dhabi Grand Prix, a structural failure of the tyre has been ruled out as the cause by Pirelli’s engineers.

“Although not much remained of the tyre afterwards, there was enough for Pirelli’s engineers to carry out a full investigation, in collaboration with Red Bull Racing. Having subjected the tyre to minute analysis, structural failure of the tyre or valve has been ruled out as a cause of the incident. Track debris or other outside circumstances cannot be excluded as a possible cause.”

Italian F3 champion Sergio Campana and rookie winner Michael Lewis had their prize drives in a 2009 Ferrari at Vallelunga yesterday.

The latter is the first American to drive a contemporary works Ferrari since Mario Andretti in 1982.

The test was organised by the CSAI in conjunction with the Italian team.

Lewis drove in the morning and recorded 1m21.0s, while Campana was 0.4s faster in warmer conditions in the afternoon. Both men did around 50 laps.

“I was sure I would have felt strong emotions but I would have not believed this much!,” said Lewis. “Everything here is multiplied compared to what I am used to do while driving a Formula 3 car. It is really tough to get to the limit but it is exciting to feel all that power and that force in fast corners and under braking. Everything is multiplied but the car’s dynamics is the same.

“There is no doubt that Formula 3 is an extraordinary school allowing me to reach this moment ready. It is fantastic to have this experience behind the wheel of a Ferrari Formula One car. It is a dream for everyone, and it is so also for an American like me”.

“I cannot explain my feeling,” said Campana. “Feeling that engine pushing, aerodynamics flattening you, brakes allowing you to brake nearly inside the corner, gear shifts in thousands of seconds. Formula One is fantastic! The Ferrari Formula One car is fantastic! For an Italian driver it is something unbelievable.

“I reckon that from tomorrow on I will fill the walls of my house with today’s pictures. I am hopeful I left a good impression. I do not know what will happen in the future and I do not even want to think about it now, I just want to enjoy a bit this moment. Continuing my career with single-seaters would be fantastic.”

Austin race founder Tavo Hellmund issud a short statement last night in response to the news that work had stopped at the Texan venue.

Hellmund has been in dispute with the organisation charged with building the track and running the race. His Full Throttle Productions company owns the contract with Bernie Ecclestone and COTA has been trying to get a new one.

Speaking through FTP, Hellmund said: “After years of effort in getting F1 to Austin, Full Throttle Productions and city, county and state officials have done all we could. It is the responsibility of Circuit of the Americas to bring it across the finish line. For the sake of everyone, we are hopeful that they can reach an agreement with Formula 1.”

Work on the Circuit of the Americas in Austin has been stopped indefinitely, the company has confirmed.

A statement says that the stoppage is pending a contract with Bernie Ecclestone being completed.

It’s understood that Ecclestone offered a new contract to COTA in the light of a dispute between the organization and Tavo Hellmund, who holds the original contract for the event.

The news comes on the heels of a statement earlier today from Texas State Comptroller Susan Combs, which confirms that the $25m state funding – crucial to the running of the event – is by no means guaranteed.

The COTA statement reads as follows:

“Organizers of Circuit of The Americas, a premier motor sports racing and entertainment venue being developed in Austin, Texas, are suspending further construction of the project until a contract assuring the Formula 1 United States Grand Prix will be held at Circuit of The Americas in 2012 is complete. The race contract between Formula One and Circuit of The Americas has not been conveyed to Circuit of The Americas per a previously agreed upon timetable.

“While construction at Circuit of The Americas has progressed as scheduled with over 300 workers at the construction site daily, all work will suspend immediately. The delivery of the Formula One Grand Prix race contract will allow construction operations to resume.

“We have spent tremendous resources preparing for the Formula One and MotoGP™ Championship races, but the failure to deliver race contracts gives us great concern,” said Bobby Epstein, founding partner of Circuit of the Americas. “We believe the United States is vital for the future of Formula One and its teams and sponsors. Given the purpose-built Tilke design, creating a unique fan experience and iconic challenge for drivers, we hope that Texas will not be left behind. Over 100,000 fans have expressed an interest in purchasing tickets for Formula One alone.”

“It is in the best interest of all parties to reach a timely resolution,” said Red McCombs, chairman of McCombs Enterprises and founding partner of Circuit of The Americas. “Local businesses, fans and the State of Texas are counting on us.”