Deal reached to keep Grand Prix in Montreal
‘Agreement in principle’ would run for another decade
NORRIS MCDONALD
WHEELS EDITOR MONTREAL— The Grand Prix du Canada will live on for another 10 years, but there are two twists to the story.
First, Saturday’s announcement used the phrase “agreement in principle.” Translated, that means Bernie Ecclestone, who represents CVC Capital Partners, a London-based private equity firm that owns Formula One, has not signed a contract.
Second, on a more positive note, the contributing partners in the spending of mostly public money to keep the race in Montreal — the federal, provincial and municipal governments plus Tourism Montreal — will actually get some of that money back.
Back to Ecclestone, who’s on trial in Germany on bribery charges and was unable to attend this weekend’s race. According to François Dumontier, who promotes the race and was supported by Montreal Mayor Denis Coderre, federal minister of infrastructure Denis Lebel, Quebec transport minister Robert Poeti and Yves Lalumiere of Tourism Montreal, Ecclestone stands prepared to sign off on the deal as soon as it is approved by the various councils and governments involved. Although he wasn’t at the media briefing — in fact, no one representing Formula One or racing’s governing body attended — Ecclestone was quoted in a release that was handed out as being delighted with the deal. “We are very pleased to be returning to Montreal,” Ecclestone said. “The Formula One tradition is entrenched here, as is the enthusiasm of the racing fans.” Under the deal, which will see Formula One racing promoted at Le Circuit Gilles Villeneuve on Ile Notre-Dame through 2024, the federal government will contribute $62.4 million, as will Tourism Montreal. The province will kick in $49.9 million over 10 years and Montreal will add $12.4 million, making the agreement worth about $187 million. On its own, Montreal will pay for improvements to the paddock and infrastructure, estimated at about $32 million. In return, all of the partners will share in a minimum of $3.9 million each year from box office receipts. The Grand Prix is the country’s biggest one-day sporting event with more than 100,000 paying their way in on race day.
The previous agreement — worth $75 million over five years ($15 million each year) and involving the same partners — was signed in 2010 and expired this weekend. The new deal works out to about $18 million a year.
“Call me an eternal optimist, but I’ve always believed in this project,” Coderre said.
“Formula One is one of Montreal’s defining emblems. Apart from its economic benefits, the Grand Prix du Canada raises our visibility throughout the world and lends us prestige as a major international metropolis.”