The United States Grand Prix, held at the Circuit of the Americas in Austin, could be under threat after the State of Texas announced it will be cutting its funding for the event.
The race was built upon a deal with the local government that provided around $25 million in annual funding through an events subsidy, with the amount based on its economic impact on the region.
However it’s now believed the state will reduce that amount by around 20 per cent to $19m, hitting the circuit with a roughly $6m funding shortfall with which it must now cover itself.
“To use a technical term, I think we’re screwed,” COTA chairman Bobby Epstein said. “It’s hit us cold. No one could foresee this coming.”
The state has chosen a different method to calculate the races economic impact, which it says justifies the reduction in funding, but COTA could challenge the ruling in court.
“An entire facility was constructed based on that deal,” added circuit spokesman Dave Shaw. “If the calculation changes now, that’s effectively changed the terms of the deal.”
The news comes following a difficult month for COTA which saw “millions” lost due to poor weather during its Formula 1 race weekend, whilst the circuit was damaged the following week by thunderstorms which flooded several buildings.
