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USA Grand Prix on the Rocks

Bernie Ecclestone famous CEO of Formula One Racing, announced yesterday that the United State Grand Prix is possibly going to be axed next year. Tavo Hellmund’s   Full Throttle Productions  believed to have owned the rights to host the race, scheduled for   November 18 in Austin, Texas, next year. Despite this Ecclestone announced that the contract between the two was cancelled after it was found out to be in breach.

Now Ecclestone is left trying to  negotiating with track developers, Circuit of The   Americas (COTA), who yesterday halted work on construction.

COTA claimed in a statement issued that “the contract between Formula One   and Circuit of The Americas has not been conveyed to Circuit of The Americas   per a previously agreed upon timetable”.

Obviously an angered Eccleston, who mentioned that the reason no contract has been sent is because he is awaiting a guarantee or a letter or credit to make sure he will be paid.

“We’ve done everything we bloody well can do to make this race happen,”   Ecclestone said.

Now COTA only has a few weeks to rectify the problem. Otherwise the USA could be in danger of never having the pleasure of F1, which already has been absent from the country for 4 years.

Explaining how the problem came about,  Ecclestone said: “We had an   agreement with Full Throttle Productions.

“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 (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.”

Ecclestone is now simply looking for “a guarantor”,to assure payment so that they contract can go ahead.

“It’s probably an old-fashioned way of going about things, needing   payment, but that’s business,” Ecclestone said.

“It’s like buying a house. Before you buy that house, and before you get   all the paperwork, you make sure you’ve got the money.”

 

 

 

 

 

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