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Commonwealth Games causes big losses for Australian GP

Commonwealth Games causes big losses for Australian GP

The Australian Formula One Grand Prix made a loss of 21 million Australian dollars (US$15.6 million; euro12.3 million) 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 Wednesday, the Australian Grand Prix Corporation announced the loss, a 61.5 percent increase on the A$13 million (US$9.7 million; euro7.6 million) 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 organizing 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 materialized 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 A$175 million (US$130 million; euro102 million).


Updated : 2021-01-21 21:11 GMT+08:00