Melbourne will continue to host the curtain raising Australian Grand Prix until at least 2020.
Talking to Melbourne radio station 3AW, the Premier of Victoria Dr. Dennis Napthine announced that a deal has been done under essentially the same commercial terms as the current contract.
The future of the Australian Grand Prix has been under a cloud for sometime.
Lengthy negotiations and a strong undercurrent of resistance from locals affected by preparations for the street circuit, fuelled rumours that the event could be scrapped after 2015.
Negotiations seemed more positive just prior to this year’s race in March, when Formula One boss Bernie Ecclestone said that with the exception of a few details that a deal was as good as done. Today’s announcement is the first time that a party to the negotiations has confirmed a finalised agreement.
Media reports in Australia estimate the new five-year contract to be worth $250 million (AUD). The official figure is unlikely to be fully revealed, with the State Government and the Australian Grand Prix Corporation declining to disclose costs citing confidentiality clauses.
Aussie F1 driver Daniel Ricciardo, talking to Melbourne newspaper the Sunday Herald Sun, said he was looking to flying the flag at future Grands Prix.
“To know there are many more home Grands Prix to come is great. I’ve got to say as an Aussie, no one does the event quite like Australia,” Ricciardo said.
“I love flying the Aussie flag – bring it on.”
Australian Grand Prix: From uncertain future to five year deal
The location of the Australian Grand Prix has been a cause for controversy since relocating from Adelaide after the 1995 Championship. As well as hosting the Australian Grand Prix, the Albert Park precinct in Melbourne services commuter traffic, and is home to several thousand residents, major sporting facilities, cycling routes, a picturesque lake and parks.
With 2014 being an election year in Victoria, speculation was mounting that the Government would kill off the event given the number of voters disrupted not only by the race weekend, but by the months of preparation beforehand.
Other voices of dissent included concerns that the Government spent too much on the contract without an adequate return for the people of Victoria, and the level of secrecy surrounding how much money is paid directly to Ecclestone.
Differences in time zones making the event difficult to stage at a suitable time for European television audiences have also figured in discussion about the future of the race.
Good news for race fans, good news for Melbourne
The signing of the deal is good news for race fans, good news for the people of Melbourne, and good news the people of Victoria.
Just being in the city during the Grand Prix weekend is enough to see the benefits the city reaps, with thousands of people in team colours walking the streets while the restaurants and hotels are full.
Hosting the first Grand Prix of the event is also brings unique benefits. When it’s “lights out and away we go” in Melbourne, it’s lights out for a new season of F1, ensuring that the world’s eyes are trained on Melbourne, if at the very least for the highlights package.
Other traditional elements would be lost if the event moved elsewhere on the calendar. Sebastian Vettel, for example, is known to go to a particular steakhouse in Melbourne with his engineers every year to pick a name for his car. Traditions like this ensure that the Melbourne event can secure its place in F1 folklore.
Most important of all is that the Australian Grand Prix delivers excitement and drama year after year, and there is no longer any threat of losing that soon.
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