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US GP must sign contract by next week

india Updated: Nov 18, 2011 19:54 IST

AP
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The 2012 US Grand Prix will be canceled unless the Texas organizers sign a contract and prove they have the funding by the end of next week, Formula One boss Bernie Ecclestone said on Thursday.

Ecclestone wants the dispute with Circuit of the Americas officials in Austin settled before the season-ending Brazilian Grand Prix on Nov. 27.

"It's all very simple "they don't have the money," Ecclestone told The Associated Press. "We don't have a contract. If they want to come back to us, if it's not signed before the end of next week, I suppose it won't be on the calendar next year."

Ecclestone wants a guarantee or a letter of credit that he will be paid.

"We have been working on this now for quite a few months and years so we can't do any more," Ecclestone said. "We have a World Motor Sport Council meeting on the
7th of December and we need to prepare everything before that."

In response, Circuit of the Americas indicated that it was looking at staging the race from 2013.

"We have been excited for and working towards a 2012 USGP race and now understand that Mr. Ecclestone is interested in moving the Austin race to 2013," Circuit of The Americas president Steve Sexton said. "We know the US market is important to the teams and their sponsors and 2013 certainly allows time for the Circuit of The Americas to be ready."

The dispute has been caused by F1's decision to scrap a previous contract it had with Tavo Hellmund, a former race driver with long family ties to Ecclestone who was originally granted the right to stage the US Grand Prix.

The deal with Hellmund was recently canceled over a contract breach, and F1 officials have instead been negotiating with the track developers, Circuit of the Americas.

At a news conference in Austin, Hellmund said Circuit of the Americas investors, including billionaire businessman Red McCombs, are negotiating to buy him out of whatever stake he still holds in the race. Hellmund said he was worried about the race's future but remained hopeful it will run next year.

"This has been my dream ... to bring F1 to Austin," Hellmund said. "I've done everything I promised to do, and more."

Hellmund blamed investors for putting the race in jeopardy because he said they failed to meet several financial deadlines. But Hellmund also deflected any questions about race finances, saying he wasn't involved and didn't understand that side of the business.

The state of Texas also had been planning to pay the cost of F1's $25 million annual license fee, but state Comptroller Susan Combs this week announced the state will not contribute any money in advance.

Ecclestone said it was likely there would be one fewer race in the 2012 season if the Texas organizers don't sign the contract in time.

Ecclestone said he had not considered bringing forward the grand prix in New Jersey which is due to take place from 2013.

A 10-year agreement has been agreed on to hold the race along the Hudson River waterfront, providing striking views of the Manhattan skyline.