The FIA World Motor Sports Council announced after its Dec. 7 meeting that the U.S. Formula One Grand Prix at Circuit of the Americas in Austin, Texas, will take place in Nov. 18, as originally scheduled.
COTA founding partners Red McCombs and Bobby Epstein raised the funds and credit to appease Formula One Management head Bernie Ecclestone, and the construction crews are back at work preparing the partially built track for its Fall 2012 debut.
Red McCombs, chairman of McCombs Enterprises and founding partner of Circuit of the Americas, said in a statement according to Formula1.com, “[Bernie] Ecclestone received his check today. We want to thank the fans [for] supporting us, the local officials, and businesses that have encouraged us, the state of Texas, Circuit of the Americas’ staff and Bernie himself. I want to thank and commend [financier] Bobby Epstein for getting us across the finish line. Bobby’s perseverance and leadership kept the project on track despite unfair and unfounded criticism.”
The future of the race had been in doubt after original organizer Tavo Hellmund, a founding partner in the Circuit of the Americas in Austin, was unable to secure letters of credit for Formula One Management according to schedule. In part the problem stemmed from FOM signing the New Jersey Grand Prix for 2013. The state of Texas, which had initially offered to front the $25 million sanction fee, withdrew its advance support, believing that the second U.S. grand prix would cheapen the brand.
Hellmund’s partners at COTA, Red McCombs and Bobby Epstein, attempted to renegotiate the deal with FOM head Bernie Ecclestone, but the F1 impresario was originally reluctant.
Meanwhile construction at the track stopped. With tens of millions already invested and several major domestic series counting on the track, COTA had plenty of incentive to make a deal. Ecclestone, on the other hand, had plenty of other venues wanting an F1 race, and the promise of another race in the American market in 2013.
No one is saying who adjusted his offer or how much was promised, or how the organizers raised enough funds or lined up enough credit to close the deal, but the COTA pair pulled it off.
“Our investors have believed all along that this project has tremendous benefit for our region, and provides a strong economic engine for the future,” said Bobby Epstein in the statement. “We remain committed to reaching our goal of being valuable community partners as we establish a platform for sports and entertainment. We’re glad that Tavo’s vision of bringing F1 to the people of Texas will become a reality.”
The United States Formula One Grand Prix will be the first F1 race in the United States since the U.S. Grand Prix at Indianapolis Motor Speedway in 2007. Formula One has always wanted a bigger a slice of the U.S. market; COTA was the first track to make a serious bid since IMS pulled out.
