New Jersey to host Grand Prix in 2013, Austin Grand Prix might face challenges – Formula 1 news
New Jersey has signed a 10-year deal for a Grand Prix and has officially announced it with the first race planned for 2013.
New Jersey is planning on a street race along the Manhattan skyline, to hit the streets in June 2013. Chris Christie confirmed in a statement that it is going to be a street circuit around the Port Imperial area.
The townships of West New York and Weehawken earlier in 2011 announced their interest in bringing F1 to the city.
The race in New Jersey would be privately funded with Leo Hindery Jr leading the group of investors. Hindery Jr is a former chief executive of the YES TV network. The idea of public funding was discarded, as it is a time of recession and public investment
would not have been a popular decision considering the current economy. Christie mentioned that the plan will increase the profile of the area.
“In these uncertain economic times when every direct and indirect revenue source is vital, our own Formula One race could be a very positive boost to our citizens,” mayors Richard Turner and Felix Roque said in a joint statement in August 2010.
The news of a New Jersey race running alongside the US Grand Prix in Austin Texas, may pose a threat to the Austin Grand Prix funding, as it is also depending on State funding.
The news comes at the backdrop of a few new circuits being developed recently in the sport. This year India is getting its first taste of Formula 1 and next season Texas will be unveiling its new circuit. All this is a part of the growth of Formula 1 and
the sport is quite popular but not enough to sustain viable profit.
Although growth is good for the sport, but making sure the new circuits are benefiting from Formula 1 as well as the circuit is also important for success.
Recently, Korean Grand Prix organisers raised the issue of not being able to generate a profit and required the Formula 1 boss Bernie Ecclestone to cut down the hosting fee to alleviate the deficit they face.
Ecclestone at the moment is looking for sponsorship deals for the 2013 Grand Prix in the city, and getting sufficient sponsors for the event to be profitable must be on his mind.
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