Should SA Motorsport Board go for IRL on with V8s?

[peckstar]

Stealthy, but why, what is the gain? currently it cost around 20 million to do the Clipsal , why would you nearly double that cost to get no bigger a crowd

[STEALTHY]

I thought they were making a profit every year? Or is that just what they have us believe.

[rustyinsthoz]

Originally Posted by peckstar

Stealthy, but why, what is the gain? currently it cost around 20 million to do the Clipsal , why would you nearly double that cost to get no bigger a crowd

To give it something it doesn't have now. International exposure. As for Clipsal making a profit. Never has and never will.

[NewsStalker]

As for Clipsal making a profit. Never has and never will

Which only leaves it open to cancellation as soon as the govt, auditor and other party with a vested interest cries 'enough is enough - no more money down the drain'

[peckstar]

Originally Posted by rustyinsthoz

To give it something it doesn't have now. International exposure. As for Clipsal making a profit. Never has and never will.

its made a profit for the last 5 years (but yes it has required a government committment to achieve that)

How would doubling the costs help it break even, the only was would be to double the income, meaning either bigger crowd (it doesnt have the room to double the crowd) or doubling the ticket price, which in theory would mean less people would go

and at any point im not sure adelaide has the capacity to double the crowd, it woudl require a significant increase in hotel accomodation

[peckstar]

Originally Posted by NewsStalker

Which only leaves it open to cancellation as soon as the govt, auditor and other party with a vested interest cries 'enough is enough - no more money down the drain'

wont happen while the crowds stay, the contribution they make to the event is more than recovered by the GST revenue and economic benefits.

unlike the melb GP the money is not down the drain

[D.R.T.]

Is that proven (economic benefits) or a general statement from organisers hoped to divert scrutiny?

[peckstar]

its an independant analysis.

but in all seriousness blind freddy can see the benefit.

ina typical year there is a 3 million cost to the government , of which they get 2 million back in direct GST leaving only 1 million in other economic benefit, which eben you can do the maths on and get that figure

[cavvy]

Originally Posted by peckstar

its an independant analysis.

but in all seriousness blind freddy can see the benefit.

ina typical year there is a 3 million cost to the government , of which they get 2 million back in direct GST leaving only 1 million in other economic benefit, which eben you can do the maths on and get that figure

Can you run the numbers to support the GST claim by us peck?

Very round numbers fine.

[D.R.T.]

Originally Posted by peckstar

its an independant analysis.

Cheers, was the analysis released?

Would be interesting to see the breakdown of the benefits, classification of costs and leakages etc.

[peckstar]

just rough cavvy but $20 million of income equals GST at 10% of $2 million,

DRT, not sure about details, but you an check the clipsal web site if you want more detail, it may be only in summary form

edit way off topic, but i just booked my plane tickets to Oran park

[NewsStalker]

SA has a GST rate of 66% instead of 10% - does the Fed govt know that?

Interesting that the DTF in SA includes motor sport travel expenses together with Defence and industry (a $16m expenditure in 06/07) - to places such as Spain, Dubai and Bahrain (must be a lot of SA related industry and defence related projects there!)

Funny how you can't get the actual figures for events such as this - thus the cost is always termed 'economic benefit' - none of which can be accurately measured or quantified...

[garbo6]

The PR put out with the launch of this years Clipsal said the event created a record $31.32m of economic benefit to the local economy, and that the event operated at a profit of $852,000.

http://www.clipsal500.com.au/2009-br...ts-records.pdf

[peckstar]

Originally Posted by NewsStalker

SA has a GST rate of 66% instead of 10% - does the Fed govt know that?

Interesting that the DTF in SA includes motor sport travel expenses together with Defence and industry (a $16m expenditure in 06/07) - to places such as Spain, Dubai and Bahrain (must be a lot of SA related industry and defence related projects there!)

Funny how you can't get the actual figures for events such as this - thus the cost is always termed 'economic benefit' - none of which can be accurately measured or quantified...

what are you waffling about who mentioned 66%
and what is DTF

[mmciau]

Originally Posted by rustyinsthoz

To give it something it doesn't have now. International exposure. As for Clipsal making a profit. Never has and never will.

At the Clipsal 500 2009 Launch function, Deputy Premier Foley announced that Clipsal 500 2008 made an $800,000 plus profit and Melbourne's AGP lost $40M.

Mike

[peckstar]

thanks mike, thats international exposure for you

but really the cost of getting the GP to race is over 30 million, there is the bulk of that $40 million.

Its really only a profit for Clipsal because of the 3 millionish contribution by the state government (additional this year because of the improvements to pit straight and the stands (shade)

[STEALTHY]

A loss of 10mil is still alot tho.

Isn't it true that the GP when in adelaide always made a profit (when you include the government money) and Melbourne hasn't made a profit any year?


Personally i'd rather the GP back, but i know that isn't going to happen. That'd be a weekend and a half, V8s during the day, GP night race.....
we can all dream i spose

[NewsStalker]

DTF - if you had bothered to check - is the SA Department of Treasury and Finance - the department that report on the Clipsal (isn't hard to find btw).

[peckstar]

worked it out in the end, not sure what it has to do with the race though.

not sure your correct though about it being the department that reports on the clipsal though

think you might find it is the "SOUTH AUSTRALIAN MOTOR SPORT BOARD" whos job it is to report on the clipsal, you can find there audited financial statements on the Clipsal website (as i have mentioned many times including in this thread)

Stealthy the australian GP has never made a loss in melbourne, by loss they mean this is the state governments contribution, so the Clipsal has never techinically made a profit if you exclude the state governments contributions, but as i said the state government more than gets its money back (i am off the opinion the victorian government dont get there 40 million back, they probbaly did when there was only ten million, but now i am doubtful. too much competition for F1 has forced them to put there price up, same with indy cars in my opinion also

[D.R.T.]

Originally Posted by peckstar

i am off the opinion the victorian government dont get there 40 million back

Depends who you ask though, Vic Government will say the money is recouped through advertising, promotion and therefore visitors to Melbourne and Victoria.

In the early 90's the Adelaide Grand Prix wrote off $30 million as civic pride.

So this shows you can make the books balance anyway you want, Homebush is going to be another example of this.

[NewsStalker]

DTF is the ultimate govt body who dish out all money, report all income and expenditure IOW the Treasury. They will fund items that go towards everything but aren't necessarily reported by that sports controlling body - thus the amounts shown as 'travel' etc that you won't find reported by the SA Motor Sports Board - which begs the question - how accurate IS the reported cost of the race to the state?

Just because a govt states it brings in economic benefit does not mean it will continue fund an event - look at Rally Australia - until 2-3 years ago, the WA govt was very happy to continue with it because of the economic benefit it brought in - but then ditched it as reality crept in and this 'economic benefit' didn't actually translate into dollars in Treasury's coffers.

[peckstar]

Originally Posted by D.R.T.

Depends who you ask though, Vic Government will say the money is recouped through advertising, promotion and therefore visitors to Melbourne and Victoria.

In the early 90's the Adelaide Grand Prix wrote off $30 million as civic pride.

So this shows you can make the books balance anyway you want, Homebush is going to be another example of this.

actually it doesnt depend who you ask. Because it was my opinion and it doesnt matter who you ask they will have to say" well in Peckstars opinion its not worth it"

I dont believe Homebush will be the same, there costs will be a lot less because V8 supercars are not taking 10 million plus to run it. theerfore the cost to the government will be a lot less (3 million a year supposidly) and that is a cost wheer the economic benefits will be clear assuming the get the crowds they are talking and the inteersate visitors they are talking about (10000 per year)

[peckstar]

Originally Posted by NewsStalker

DTF is the ultimate govt body who dish out all money, report all income and expenditure IOW the Treasury. They will fund items that go towards everything but aren't necessarily reported by that sports controlling body - thus the amounts shown as 'travel' etc that you won't find reported by the SA Motor Sports Board - which begs the question - how accurate IS the reported cost of the race to the state?

once again you appear to be waffling about something that i have no idea what your saying.

your quoting some report that i have no idea off and you have never referenced

you can see the audited report, if you have something to add, bring it to the table instead off making up unsubstantiated BS

[rustyinsthoz]

[QUOTE=peckstar

you can see the audited report, if you have something to add, bring it to the table instead off making up unsubstantiated BS[/QUOTE]

The audit report itself is a bunch of BS

[peckstar]

im not sure what you base that on, its audited by the auditor general? i guess you must by some high powered chartered accountant with inside knowledge?

or does it just not agree with your opinion