Texas Facing F1 Finance Issue
The group that negotiated bringing Formula One racing back to America next year is facing fresh criticism after sceptics, including the Texas senator, said that the state cannot afford the ambitious Formula One scheme.
A reported £154m is required to build the new race facility in Austin, Texas, that will host the US Grand Prix from next year, until 2021.
However, with the Texas state suffering from an estimated budget deficit of £16.6bn over the next two years, some state lawmakers are wondering where the extra funds will come from.
The plan is to put £15.4m into the race circuit, and then use the revenue generated each year to reinvest £15.4m annually for the next ten years.
Texas senator Dan Patrick argued: ‘This is something we should not be doing. How can you justify spending $25 million? That is 500 teachers’.
Formula One is expected to return to the country next season with the purpose-built circuit in Austin.
The Indianapolis Motor Speedway hosted a US Grand Prix from 2000 to 2007, but endured a checkered spell in the sport that had it’s problems – in 2005, 14 of the 20 drivers withdrew from the race to protests concerns about tyre safety.
