NO F1 FEE FOR AXED AUSTRALIAN GP

No F1 fee for axed Australian Grand Prix – Photo: LAT

The cost of the cancelled Formula 1 Australian Grand Prix will take months to calculate as race organisers work through all sorts of rebates, refunds and reparations.

By MARK FOGARTY

The final bill will be revealed in the Australian Grand Prix Corporation’s annual report, normally released in late August or early September.

Recent annual losses of around $60 million could be offset by insurance coverage and the waiving of F1’s race sanction fee.

The Victoria government has confirmed that the hefty charge, believed to be more than $20 million, doesn’t have to be paid because of the event’s cancellation due to the coronavirus crisis.

AGPC still has to pay for setting up and dismantling the Albert Park circuit, which costs around $30 million, and refunds ticket holders.

Sponsorship agreements and support race deals, including Supercars’ championship round, have to be adjusted.

Along with the scrapping of the F1 charge, which is formally known as a Formula 1 promoter’s fee, AGPC will get big money back from its insurance.

AGPC won’t reveal the exact terms of the indemnity, but the policy is believed to at least cover event cancellation.

Whether the terms include a pandemic is unknown, although Tennis Australia recently revealed that its insurance for the Australian Open included protection for such an event, which may be actioned if the 2021 tournament can’t go ahead because of continued COVID-19 international travel restrictions.

AGPC is refunding all 2020 ticket-holders – a disbursement of up to $40 million.

Last year’s AGP accounts listed ticket revenue as $38.6 million, with overall receipts – including sponsorships and corporate hospitality – amounting to $55 million.

That was offset by expenditure totalling $115.1 million, resulting in a ‘government investment’ of $60.1 million.

This year’s ticket revenue may have suffered because of the lack of walk-up sales on the Friday, Saturday and Sunday

The final cost will be dictated by fixed expenditure versus refunds, minus the F1 rebate and insurance payout.

AGPC has also clarified the terms of refunds to ticket-holders.

For four-day passes, the refund will be pro-rata for those who attended on the Thursday, when there was a full day of support racing track action.

The refunds will include booking and credit card fees.

F1 ‘Paddock Club’ and trackside corporate hospitality suite rebates are being negotiated separately.

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