The following post is a guest contribution by Citizen Richard of Audits in the Public Interest.
In late spring of 2010, Austin residents woke to the grand news their city had been selected as the host city for Formula One racing in the United States. Amidst the hype, and not immediately noticed, was the price tag hanging off the back of their new community award: an invoice in the amount of $250,000,000 to Formula One World Championship, Ltd, for the sanctioning fee.
A 25 followed by seven zeros is one quarter of a billion dollars and this was not all: the City of Austin would be on the hook for another $40,000,000. The incentive, from the Texas Major Events Trust Fund (METF), would supposedly be paid from increased retail taxes. The METF is administered by the Comptroller of Public Accounts, Susan Combs.
An extensive review by Audits in the Public Interest reveals a different picture about Formula One. (more…)
