F1 race fights for survival

At a financial loss the Australian Grand Prix event may be relocated to another city.

The Australian Grand Prix is expected to lose $40 million this year, as organisers fight to keep the Formula One event in Melbourne.

Australian Grand Prix chairman Ron Walker yesterday hosed down speculation that Melbourne was in danger of losing the big-ticket race, amid speculation F1 bosses are scouting for more lucrative host cities.

Victorian Premier John Brumby hinted late last year that the event was in doubt if it became too expensive and licence fees rose. Last year's race lost almost $35 million.

Yesterday, Walker said the race was viable and the racing industry backed keeping it in Melbourne beyond the 2010 contract date.

He rejected claims by F1 boss Bernie Ecclestone that teams and sponsors wanted the event axed from Melbourne, and that Mr Brumby had withdrawn his support.

“I don't agree with that at all, I speak to the teams regularly and they love coming to Melbourne,” Mr Walker said.

“The premier's been a great supporter of it, even in opposition . . . but it has to add up in the eyes of the taxpayer.”

Mr Walker predicted the Grand Prix would lose even more money this year, but said losses must be balanced against the sport's economic benefits.

“It will probably cost $40 million this year, but that's because of the high cost of constructing a street circuit in Albert Park,” he said.

Australian motor racing chiefs considered hosting a night race to cash in on overseas audiences in a better timeslot, but the move was ruled out. Instead it has moved from 2pm to 3.30pm, which Walker said would attract tens of millions more television viewers.