It looks like Austin taxpayers will not get stuck with making an annual contribution to Bernie's rights fee. According to this article, the state will pay him $25M/year and the promoters will contribute $4M/year. However, this deal still seems confusing. The source of the $25M/year is the state's Major Events Trust Fund and that money can only be formally requested by a city where a ""major event" is taking place. The sponsoring city is expected to put up part of the cost of funding the event. So one is left to wonder exactly how will the deal work. Is it definitely true that the Tavo and Red will be paying the $4m/year and not the city?
New deal for Austin's Formula One calls for no contribution of city funds
Proposed arrangement lets taxpayers off the hook for races, city officials say.
By Eric Dexheimer and Sarah Coppola
AMERICAN-STATESMAN STAFF
Published: 9:44 p.m. Thursday, June 16, 2011
City of Austin officials say they are nearing completion of a contract with organizers of the Formula One race scheduled to begin in Austin next summer that would eliminate nearly all local taxpayer support for the event.
The city's new arrangement would not affect the estimated $25 million annual subsidy state officials have committed to providing to support the internationally popular race. But it could deflate concerns of local critics who objected to using city taxpayer money to support the race.
But if approved, the new agreement would have Formula One promoters place an estimated $4 million into a state trust fund account every year for the 10-year duration of the contract.
The local payment is necessary for Formula One promoters, led by Austin's Tavo Hellmund and supported by auto magnate Red McCombs, to leverage a $25 million state subsidy through the Major Events Trust Fund, an economic development program administered by the comptroller's office...