Thursday, May 21 2015
By Yannis Gatsiounis, associate project manager of Angelou Economics
Four years ago, the announcement that Austin would get a Formula One (F1) track was met with much fanfare. It would further put Austin on the map and boost the local economy. Three years after opening, however, the track’s economic benefits are still being debated.
The track, known as Circuit of the Americas (COTA), was constructed at a cost of $300-450 million. The value has since dropped to $271 million, say government officials, and the track started paying $22 million a year for 10 years to Bernie Ecclestone, chief executive of the Formula One Group, which manages Formula One and controls the commercial rights to the sport, according to the Austin American Statesman. The Statesman notes that COTA covers that and other costs – totaling $29 million – with state incentives.