Austin loses state funding for Formula One race

[Jscott1112]

Many medical professionals I know had to go through trafficking awareness trainings before the Super Bowl came to Arlington. Same for the NFL draft in DFW.

[Richard S.]

We pay the for the event in return we get a huge boost in our local economy.
$5 billion: COTA's cumulative economic impact on the Austin metro area.
$423 million: Direct visitor spending injected into Austin-area businesses during COTA events.
$306 million: Annual payroll for Austin-area workers attributable to COTA's annual activities and operations.
$53.2 million: State tax surplus created by tax revenue generated by COTA events
$810 million: Economic impact attributed directly to COTA operations.
$3.1 billion: Economic impact for all other major sporting events, including F1, MotoGP, X Games, and more.
$36 million: Economic impact of concerts and events at Austin360 Amphitheater.
$14 million: Economic impact of track rentals and other miscellaneous events.
46,100: Jobs supported by COTA's annual activities and operations.

I just can't see where this much money is generated...

[Take Dead Aim]

Austin didnt lose anything. COTA lost out on 25M. The race generates money and tax dollars. I dont believe the numbers used above are correct. I think someone took some liberties in gathering them up.

[Pullersboy]

I had no idea the state was paying for the race.

Me either. And, I don't like it. If a sport can't survive on it's own merits and the crowd/fans it draws, then why the hell are we spending one dime of taxpayer money on it?

[100%TtId]

We pay the for the event in return we get a huge boost in our local economy.
$5 billion: COTA's cumulative economic impact on the Austin metro area.
$423 million: Direct visitor spending injected into Austin-area businesses during COTA events.
$306 million: Annual payroll for Austin-area workers attributable to COTA's annual activities and operations.
$53.2 million: State tax surplus created by tax revenue generated by COTA events
$810 million: Economic impact attributed directly to COTA operations.
$3.1 billion: Economic impact for all other major sporting events, including F1, MotoGP, X Games, and more.
$36 million: Economic impact of concerts and events at Austin360 Amphitheater.
$14 million: Economic impact of track rentals and other miscellaneous events.
46,100: Jobs supported by COTA's annual activities and operations.

These numbers look wildly over-optimistic. Can you cite a source?

[Take Dead Aim]

Me either. And, I don't like it. If a sport can't survive on it's own merits and the crowd/fans it draws, then why the hell are we spending one dime of taxpayer money on it?

Yall are missing the point. It's a deal that was made to bring F1 to Texas rather than it going elsewhere taking the money that it brings in to the economy.

[Maxlab]

Austin didnt lose anything. COTA lost out on 25M. The race generates money and tax dollars. I dont believe the numbers used above are correct. I think someone took some liberties in gathering them up.

Then please share the correct numbers. Everything from what I found is in the same ball park. Also those numbers I believe are cumulative since it opened. I may be wrong.
At the end of the day, it brings in a ton of money to the local area. $20 million is cheap for the return the Economy is getting.

[Pullersboy]

Yall are missing the point. It's a deal that was made to bring F1 to Texas rather than it going elsewhere taking the money that it brings in to the economy.

If it's actually producing that much money, then why do they need a measly $25 million to make it happen? Either it makes money, or it doesn't and should be allowed to fall on its face. It is not the government's roll to prop up private business. I truly hope that they are extremely successful and make millions upon millions. I just don't want tax dollars to be the source. I understand what you are saying. I just fundamentally disagree with the premise.

[Take Dead Aim]

If it's actually producing that much money, then why do they need a measly $25 million to make it happen? Either it makes money, or it doesn't and should be allowed to fall on its face. It is not the government's roll to prop up private business. I truly hope that they are extremely successful and make millions upon millions. I just don't want tax dollars to be the source. I understand what you are saying. I just fundamentally disagree with the premise.

It's an investment. The state offers up this to the F1 in return the state makes their money back in taxes etc spent during these events. If you dont think it is a good deal I understand but most times it works out very well for the state or city.

Dell is a great example. Austin refused to give Dell any incentives. The city of Round Rock said come on down. Gave them a huge tax break for a decade. Those tax breaks have paid for themselves 10000x over.

[Atfulldraw]

same people cheering for little idiot Abbott are mad at AOC for the same thing....irony.

[100%TtId]

Modern era F1 has been tried in Phoenix, Dallas, Detroit, Long Beach, Indianapolis, Las Vegas, and Watkins Glen.

Most were money losers for the venue and the local promoters. That's why they didn't continue.

F1 itself, and Bernie Eccelstone in particular, made billions.

[More Liberty]

Yep. $20M is definitely worth it. That’s a heck of a return on investment. While I’m not an F1 fan, the race is good PR for Texas and USA motor sports. I hope there’s a way COTA can work things out with the state.


Sent from my iPad using Tapatalk

It's great IF these numbers are accurate. Organizations and/or governments are infamous for over inflating -playing easy with numbers - to support various boondoggles. Remember how our insurance premiums were suppose to go down after Obamacare.

[More Liberty]

same people cheering for little idiot Abbott are mad at AOC for the same thing....irony.

According to the article, Texas taxpayers actually GAVE/Reimbursed COTA:

"The state reimbursed COTA $27 million through that program in 2017, $26 million in 2016 and $22.7 million in 2015 for the only F1 race in the United States."

That's is not the same as as tax subsidies where Amazon would have been given substantial tax breaks for a decade in NY. You see the difference? Actual dollars are exchanged with COTA, dollars are not exchanged with tax subsidies. With the COTA deal money actually comes out of the state coffers. The Amazon deal is a tax break -there is no money - NY didn't take money from tax payers and give it to Amazon like Texas did with COTA.

See the difference? You're not alone. That AOC communist doesn't understand economics either. Did you also get an economics degree from Boston?

[shawn]

According to the article, Texas taxpayers actually GAVE/Reimbursed COTA:

"The state reimbursed COTA $27 million through that program in 2017, $26 million in 2016 and $22.7 million in 2015 for the only F1 race in the United States."

That's is not the same as as tax subsidies where Amazon would have been given substantial tax breaks for a decade in NY. You see the difference? Actual dollars are exchanged with COTA, dollars are not exchanged with tax subsidies. With the COTA deal money actually comes out of the state coffers. The Amazon deal is a tax break -there is no money - NY didn't take money from tax payers and give it to Amazon like Texas did with COTA.




See the difference? You're not alone. That AOC communist doesn't understand economics either. Did you also get an economics degree from Boston?

thank you

[AntlerCollector]

I'd like to see real proof of those numbers listed as well. $53.2 million state tax surplus. How? We don't have a state sales tax.