Formula One news

Australian Grand Prix in doubt after 2010

The future of the Australian Grand Prix at Melbourne's Albert Park has again fallen into question with the state government of Victoria relictant to pay rising fees for hosting the race to Formula One Management.

The cost of hosting an F1 Grand Prix is understood to increase according to Melbourne's deal, justified by the fact that other countries are willing to pay to take the race way from Australia. This year's race cost Victoria state almost $35 million and the current contract expires in 2010.

"The main reason for the increased cost of the Grand Prix is the increased licence fees," Victorian premier John Brumby was quoted as saying by Australia's The Age newspaper. "If you go back to the origins of this event, we were told at the time that this was an event that would break even or make a profit."

"The reality is that since then the licence fees paid to Formula One have continued to rise," he added. "It's not costing more to set-up the event, in fact we're getting more efficient each year - the cost is going up because of the licence increase."

"It's an event in demand around the world so places like Malaysia and Dubai are prepared to put more than $50million a year in licence fees on the table," he revealed. "I think that currently we can sustain the costs but post-2010 the licely cost of licence fees is up and not down."

Negotiations over increased licence costs were the reason that the US Grand Prix will not be back on the calendar in 2008 with the Indianapolis Motor Speedway refusing to pay the price hikes.

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