The Canadian Grand Prix has moved a big step closer to returning to the Formula 1 calendar after securing major government investment.
The popular Montreal race had fallen off the schedule this year when organisers were unable to reach an agreement with Bernie Ecclestone, and although it was pencilled in for a return in 2010, that deal was dependent on a financial deal falling into place.
It was announced that a $15 million funding injection from the governments of Canada and Quebec, and the city of Montreal and its tourism authority, had been secured.
The return of the Canadian GP is therefore set to be ratified at the FIA World Motor Sport Council meeting next month.
Montreal’s mayor Gerald Tremblay had been at the centre of negotiations to revive the race, and was delighted to have succeeded. ITV
“Today Formula One says ‘yes’ to Montreal and Montreal says ‘yes’ to Formula 1, but not at any price,” Mayor Gerald Tremblay said.
“We wanted a world class event but we wanted that our investment respect the capacity to pay of our taxpayers.”
Under the deal, the federal government and Montreal’s tourism bureau will each kick in $25 million over five years, while the province will spend $20 million, and the municipal government will contribute $5 million.
In return, the city and its partners will receive a 30 per cent share from ticket sales. The event is expected to generate $18 million in federal and provincial tax revenue each year, overall economic spinoffs of $89 million and 75,000 overnight hotel stays. The Canadian Press
“The return of Formula One to Montreal attests to our sustained efforts and determination,” said Montreal Mayor Gerald Tremblay in a statement.
“This win-win deal falls in line with the terms we set and the taxpayer’s ability to pay and will create stability for the next five years.”
“I am very pleased that our metropolis is bringing back this crucial stage in the Formula One series for fans from around the world and an outstanding opportunity in terms of the event’s international reach,” he added. Yahoo! Eurosport
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