It looks like the money to bring the Formula 1 Racing to Texas will cost taxpayers 25 million skins.
That according to the Austin American Statesman.
Contrary to earlier assertions, Texas taxpayers are putting up the first $25 million in a deal aimed at luring Formula One racing to Austin.
And the money, to be deposited in the state’s Major Event Trust Fund, would pay the sanctioning fee London-based Formula One Group charges for the privilege of hosting the first of 10 annual F1 races planned for Austin beginning in 2012. Austin resident Tavo Hellmund would organize and promote the races.
Last week, state officials said money from the fund would not go to the promoter but to local governments to reimburse them for costs incurred in hosting such large sporting events. Previously, the fund, which has been used to cover costs associated with hosting the Super Bowl and baseball and basketball all-star games, has been generated from sales taxes and other tax receipts in host communities that are attributable to spending at the event.
Money in this fund was initially supposed to go to local governments, but a rewrite last year by the Texas Legislature to the state law dictating how the fund can be used allowed the State Comptroller’s office to do whatever it needs to do for “attracting and securing eligible events.”
This can’t be good for the folks in Roscoe.