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Motorcycle Grand Prix in trouble

Financial losses put country's premier sporting event in jeopardy


Posted: March 16, 2011

By František Bouc - Staff Writer | Comments (0) | Post comment

Motorcycle Grand Prix in trouble

ISIFA Photo

Italian Valentino Rossi at the 2010 incarnation of the Czech Grand Prix Brno.

The future of the Czech Grand Prix Brno, part of the world's premier motorcycling championship series, is in jeopardy.

The event's organizer, Automotodrom Brno, announced a financial loss of 78.7 million Kč in 2010. Automotodrom Chairwoman Ivana Ulmanová said financial woes are likely to bring an end to the annual Czech Grand Prix - one of the most traditional and largest sports events held each year in the country.

"Even if we further cut operational costs, we're unable to have a balanced budget. In this situation, it's likely this summer's Czech Grand Prix will be the last one," Ulmanová said.

The Czech Grand Prix has been held on the Masaryk circuit in Brno every year since 1965. Last year, about 238,000 fans attended the competition of the world's premier bikers. The Czech Grand Prix was the most attended race in a season of 18 races in 13 countries. Still, net income from admission to the event reached only about 51 million Kč, the organizers said.

Overall operational costs of the Czech Grand Prix in 2010 reached more than 88 million Kč. Meanwhile, revenues totaled only 75 million Kč. The event's ultimate killer will likely be the high listings fee charged by the championship's worldwide promoter, the Dorna Company. Last year, the fees almost doubled, reaching 70 million Kč. All told, the Czech Grand Prix lost more than 80 million Kč.

Ulmanová said not even profits from other events or renting the circuit for testing - by Formula One teams, for example - can cover Automotodrom's loss from the Czech Grand Prix.

Automotodrom Brno has already notified Dorna that it cannot guarantee financing of the 2012 Czech Grand Prix. At the same time, the Brno organizers began lobbying for state aid.

"We're the only race within the Grand Prix that does not receive subsidies from the national government," Ulmanová said.

Last year, Czech Grand Prix organizers received 10 million Kč from the city of Brno and 6 million Kč from the south Moravian region.

Call for aid

Ulmanová appealed to the national government to contribute from the state coffers. Education and Sports Minister Josef Dobeš reportedly told Ulmanová that he would try to arrange about 20 million Kč for the Czech Grand Prix. Even if the minister did secure this subsidy, however, it is unlikely to be enough to save the 2012 Grand Prix.

"If we don't receive principal support from the government, we won't be able to finance future racing on the Masaryk circuit," Ulmanová said, adding that the future of the actual race track would then be in jeopardy.

But Finance Minister Miroslav Kalousek turned a deaf ear to Automotodrom's calls for help. He said the government cannot sponsor sporting events.

"Grand Prix events and other sports competitions are great entertainment and also great business," Kalousek said. "I can't see any reasons why Czech taxpayers should sponsor this business."

Ulmanová still has hopes the government could allocate funds for Automotodrom Brno. After receiving negative feedback from Kalousek, Ulmanová hopes to convince Dobeš.

"He's got origins in the region and understands how important the Czech Grand Prix is for the region," Ulmanová said.

In order to organize the 2012 Czech Grand Prix, the organizers would have to receive some 70 million Kč from the government. South Moravian Regional Governor Michal Hašek and Dobeš have promised to consider possible state support.


František Bouc can be reached at
fbouc@praguepost.com


Tags: sports news, czech sports, motorsport, motorcycle grand prix, czech grand prix brno, financing, automotodrom, losses, budget.


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