Musings on the Grand Prix du Canada
In 2014, the contract for a world championship Grand Prix between the city of Montreal and Bernie Ecclestone’s Formula One series was about to end. It hadn’t been a particularly good one so far as F1 was concerned.
The 2009 race had been cancelled because of an impasse and, in return for bringing it back, Ecclestone had asked for $35 million a year for five years starting in 2010. Three levels of government — Ottawa, Quebec and the city of Montreal — offered $15 million per annum, take it or leave it. Bernie (as he is universally known) took it.
One of the conditions was that improvements — upgrades — to the track and paddock (garages, medical centre, control tower) would be made. Ever since the Grand Prix was moved from Mosport to a track on Ile Notre-Dame in 1978, the paddock has consisted of a bunch of construction shacks (now gussied up, but still construction shacks) jammed between the circuit (once arterial roads servicing pavilions at Expo 67) and the Olympic Rowing Basin. Compared to — say — the paddock at Abu Dhabi, Montreal is not just second rate, but about tenth-rate.
At that 2014 Grand Prix, the governments of Canada and Quebec, the city, and Tourism Montreal announced an agreement in principle with F1for Montreal to host the Grand Prix until 2024.
Of the total commitment of $187 million over the 10 years, Ottawa would be on the hook for $62.4 million, as would Tourism Montreal. Quebec would contribute $49.9 million and the city of Montreal would kick in $12.4 million.
Oh, and a media release distributed by Canada News Wire said: “In addition, the City of Montreal will be contributing to the renovation of the Formula 1 infrastructure at the Circuit Gilles-Villeneuve at an estimated cost of $30 million.”
So, the improvements originally promised in 2010 weren’t done but would be, according to this 2014 media release. Nothing happened. In 2016, Ecclestone threatened to pull the plug on the race because the paddock was still the shantytown it had been since 1978. Montreal Mayor Denis Coderre told reporters that this threat was just a lot of hot air.
“It’s Bernie being Bernie,” the mayor said, adding that, “the improvements will be made, but when you commit to spending millions of taxpayer dollars, you have to be sure it is being spent wisely and that there are no misunderstandings.” Coderre said that lawyers would be sitting down in London “shortly” and the contract would be done and the work would commence.
That was a little over a year ago, in June 2016. Since then, three things have happened: 1. CVC Capital Partners, which owned Formula One, sold it to Liberty Media; 2. Liberty Media fired Bernie Ecclestone; 3. When the F1cars and drivers showed up in Montreal two weeks ago, the paddock still looked pretty much the same as it always has — portable toilets and all. In other words, nothing had happened.
But wait! There was a media conference being held on Friday afternoon, June 9. And there was to be an announcement.
The news was that the contract to hold the Grand Prix had been extended to 2029 and the three levels of government plus Tourism Montreal would pay close to a total of $98.1 million for that privilege.
And — wait for it — Coderre said work on the paddock would be completed in time for the 2019 race and would start the day after next year’s race is over.
The length of that contract between F1and the city of Montreal is now officially staggering. Who or what has a contract that long? Will Formula One even exist in 2029? Don’t scoff. The entire auto industry is going electric and autonomous, and F1could soon be a dinosaur. What if F1goes out of business, or merges with Formula E, which is owned and operated by another company? What happens to this contract?
And my head is spinning when it comes to the sums. In 2014, $187 million was earmarked for this race through 2024. Now, nearly another $100 million has been announced for the extra five years up till 2029. That’s a total of — approximately — $285 million dollars.
I’m a racing fan, and I’m passionate about the sport. I’m also a taxpayer. Do I hear P.T. Barnum talking? Isn’t he the guy who said there was a sucker born every minute?
F1is more than the sport of kings, which is horse racing and pretty much pays its own way. F1is the sport of billionaires. They go all over the world to play. They come to my country for three days a year. Starting next year and continuing till 2029, F1will be in Montreal a total of 36 days. A bit more than a month in 11 years. And they want $285 million to do it (less the several millions already spent since 2015).
Which shell did you say the pea was under?
P.S. Going back to 2010, the city of Montreal has promised to fix up the paddock. Coderre said in 2016 that it would happen, but that taxpayer money was at stake and all the i’s had to be dotted and t’s crossed before shovels went into the ground.
Last week, CBC Montreal reported that $24 million was being spent to bring the all-electric racing series Formula E to Montreal at the end of July. A check with all other cities hosting Formula E events showed Montreal to be the only one spending that kind of money.
That, apparently, was not public knowledge until the CBC started nosing around.
When confronted with the reporting, Coderre said $14 million was for paving city streets being used for the racing and $10 million was in support of a bank line of credit extended to the promoters.
“We’re changing the culture,” the mayor said. “We want cars but we want electric cars. We want taxis, but we want electric taxis.” What happened between June 2016, when the mayor said extreme caution had to be shown when spending public money on car racing, and today? Between then and now?
Sound like he has some ’splainin’ to do. And if anyone reading this believes that the paddock work for the Formula One Grand Prix du Canada will ever be done, I will give you, in the words of George Strait, a terrific deal on some oceanfront property I own in Arizona. nmcdonald@thestar.ca