Australian GP incurs heavy loss

Updated: 25 February 2007 10:36 IST

The Australian F1 GP made a loss of 15.6 million dollars in 2006, due partly to Melbourne's staging of the Commonwealth Games earlier the same month.

Australian GP incurs heavy loss
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Melbourne:

The Australian Formula One Grand Prix made a loss of 15.6 million dollars in 2006, due partly to Melbourne's staging of the Commonwealth Games earlier the same month. In its annual report presented to Victoria state's parliament on Wednesday, the Australian Grand Prix Corporation announced the loss, a 61.5 per cent increase on the 9.7 million dollars the previous season. Ticket sales were down and the cost of staging the race at Melbourne's Albert Park increased because part of the venue was used during the Commonwealth Games and workers had to rush to prepare the circuit for the F1 race. The Australian GP, usually the opening race on the F1 calendar, was pushed back a month to make way for the Commonwealth Games earlier in March. AGP Corp. chairman Ron Walker was also head of the Commonwealth Games organising committee. "There was a risk that ticket sales revenue would be impacted by staging two major events so close to each other," the report said. "This risk materialised and the corporation achieved lower ticket sales revenue as compared to prior years." The report claimed, according to the Australian Associated Press, that the losses were offset by findings in a 2005 study that estimated the economic benefit of hosting the GP in Melbourne was 130 million dollars. (AP)

Topics : Formula 1 Australia Australian Grand Prix
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