Who will pay for the postponement of the Australian Grand Prix?
F1 News
The Australian Grand Prix has been cancelled. Millions of pounds will be lost from both F1 and the race organisers. Everything was ready to go for the first practice session of the race weekend, but the plug was pulled just two hours before the green light. The question now is, who is going to be paying for this loss?
With the exception of Monaco, each circuit pays a hefty amount to organise a Grand Prix. According to ESPN, the amount that Melbourne pays each year to host the race is around 115 million Australian dollars. 60 million is paid by the state of Victoria, where Melbourne is located.
The circuit has offered to refunded all tickets. However, most contracts between the circuits and F1 have a part that states that the person who cancels the race must pay the costs.
Contract
The organisers' press release states that F1 and FIA have decided to cancel the race. The ruling of Lewis Hamilton: "Cash is king" would turn out true and the reason behind the delay. According to AGPC CEO Andrew Westacott, "the contractual consequences of the delay have not yet been determined," he told ESPN.